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Chance to build some momentum now.

SPG results will confirm 99.95% battery grade. Should be due any day. Major value added milestone confirming commercial opportunity,

2nd $1m to follow.

Offtakes and full project funding due. The main value added points.

Larger project plan with NPV >2 times the PFS.

DFS and decision to mine in 2024. Don't get caught out thinking you have a year to get in. As SPG results and OEM testing comes to an end, offtake partners will want to get their business done early. This will drive the enlarged scale of the project which will make it more attractive to funding partners. Funding partner will be secured in order to move forward with the larger plan. Offtake upfront payments or other funding may provide cash for further drilling and improved resource and mine life.

Lot's of milestones already achieved not priced in and lots of milestones to be achieved in the next 12 months. Now is the perfect time to get in, it's much clearer to see the direction now and it has been heavily derisked.

The resolve research coverage is highly conservative.

At 12% it is using the highest derisked discount factor.

After assuming 20% equity dillution there is a further 65% derisking haircut.

So assuming only around 20% valuation of the discounted npv.

The project plan is moving on more ambitiously than the .$482m PEA plan.

Npv will grow because recoveries and grade are improved

There is nothing factored in here for SPG processing, effectively taking their output from a $700 product to a higher margin $2500 product. This will also reduce costs.

Combining stage one and 2 saves on capex and increases early stage revenues. Will improve npv.

Further drilling can increase mine life.

In summary, your getting a good deal at around 5p based on a conservative target that the company will be delivering upgrades to regularly over the coming months.

People are worrying about how they may fund another few million, but that few million will add probably another $500m+ to the npv, so however they fund it, it will be a good deal!

What rest of the cash?

Per proactive interview Mike has confirmed we do not need to match the $5m. The $5m is delivered in $1m tranches based on milestones. 1 delivered. 1 very close.

Off we go.

Target now must be to achieve the 100,000 tonne offtakes between US and china in order to meet the requirement to merge stage 1 and 2.

I think the sticky point is the right of first refusal the DFC would have on project funding. You would expect other clauses also securing product supply. That doesn't fit with the increased comms on China interest. It may not be in BRES best interest to proceed with the DFC and i suspect until all options have been considered, this will be on hold. If BRES pick another route it must be pretty good to turn down the DFC, so this doesn't worry me at all.

Unusually Mike has not done an interview on the back of Bulk sample results which i would expect would be a great opportunity to discuss and talk about china. The lack of an interview suggests to me there is more that he cant say than what he can.

DFS is really about proving up the commercials of the project in order to achieve a positive decision to mine ahead of completing finance.

Bulk sample testing was a key milestone to prove up the product. With this flow sheet and plant optimization work carried out in order to optimize the plant design.

During the process recoveries and grades were improved from the pre feasibility study improving the commercials. So already they have added vale to the $482m NPV in the pre feasibility study.

SPG results are due confirming battery grade. This will further enhance the financials as it confirms the commercialization of the product reducing risk.

OEM testing final validation of testing by end users. We know following the bulk sample there is product being sent to several interested parties.

Signing offtake agreements is part of the DFS. Having proven the quality of the product proving up that you have customers ready and waiting enhances the financials as it reduces the risk. Potential for upfront payments, or even equity partners at this stage can bridge short term financing gaps and ultimately full project finance. With competition for supply, i expect offtake partners will want to secure contracts quickly.

They are looking at processing options in and out of country.

Options to increase the scale of the project having only drilled 1-2%.

They have already done work on sustainability and environmental assessments.

There seems to be a lack of knowledge about what the DFS is and an idea that lack of news on the DFC grant means things are standing still. All this progress the company have been talking about is part of the DFS. There is a lot more to it but much of which is an extension of the work already carried out in the PFS.

Mike Ralston talked about a larger project with DFC involved. Whether they will be or China steps in, they have previously stated that if offtake agreements can be signed for 100ktn per annum rather than the initial 50ktn estimated, they will amalgamate stage 1 and 2 of the project achieving capex savings. With the level of interest this has attracted it's certainly possible that there are grounds to move the project forward more ambitiously than planned.

It might not seem like it but there is a lot going on and a lot of progress made, and we are now at the stage where a couple of more developments will reveal a lot and move this forward quickly. Bres still own 100% of the project and the dilution to get here is very minimal compared to other companies achieving similar success.

Because that's the timetable the company have given - Admittedly they are always behind their timetables. They have already delivered on milestones in the DFS and other key parts are well under way. The urgency to get things moving will shift at some point.

100% - dont forget the plan is to complete DFS by end of this year. Offtakes is a key part of that and will likely provide funding. Decision to go ahead and mine should be early next year with the required project funding.

All the groundwork is done here. Only SPG results confirming battery grade is required.

This is not about proving up the asset any more. They have done that and have generated significant interest in a resource that is at the very start of its growth phase and soon to be under pressure for supply. They somehow failed to build any growth in the valuation of the company in doing so which is an anomaly.

I am sure they could get someone to write them a cheque for Orom cross today for several times the current market cap if they wanted.

BRES have options here. This project and the product is clearly highly sought after. They have now completed all the necessary drilling and bulk samples required. They could have raised more and spent more to prove up more resource but the added dilution at this stage was not good value.

SPG results are overdue confirming battery grade. This is the last piece required to prove up a high quality product.

From there we have the issue of funding, firstly to complete the DFS and then to finance the build and production. Important to understand the DFS has already past some key milestones.

DFC was an unexpected angle. No word on this since the initial RNS. My take on this is there are 3 possible scenarios. All going as announced and delays, something bigger going on with US china link or bres have the potential for a better option with china. If they walk away from the DFC grant, how good must the alternative be?! It may be more favourable to go with an industry expert from china.

The level of interest from other parties is such a luxury for bres. They are not at the mercy of trying to find a deal out of desperation to get this off the ground. They have choice and they are in a strong position to negotiate as the product is in demand and they are putting themselves to the top of the shopping list for potential suppliers.

I suspect that fairly soon they will announce some finance that will take the market by storm. An offtake agreement could well come with a prepayment in excess of the current mcap.

It may be frustrating that we still await clarity on partners and funding, but i believe they are holding on for the best deal giving away as little dilution as possible. They will show their hand soon.

All roads point to funding and supply into the US. China have the tech to process to battery grade. US want to onboard this and so do Blencowe, which takes China out of the equation. What i really like about this is that if the growth in Graphite does falls behind projected levels based on EV sales, either in timeframes or market size, tie in with DFC and major US EV manufacturer would ensure Blencowe supply is eaten up first so sensitivity to the graphite growth projections would be minimized.

DFC are a US Gov agency with a 2023 budget of $7.68bn

Working with the department for Energy focusing on clean energy supply chains, which includes Electric Vehicles at the heart of the future direction

There is a supply chain issue concerning certain key critical resources, including Graphite, of which there is between 5 and 10 times the amount of lithium in a lithium ion battery. Graphite is also non replaceable in the anode (except for synthetic graphite which has other environmental concerns)

The only other graphite company DFC/DoE are working with is Syrah, who have received $322m in commitments for loans and grants.

Syrah have an offtake agreement with Tesla.

DFC/DoE are interested in full scale battery metal production with SPG processing away from China. Mike has also mentioned taking the technology to the ground at Orom Cross.

The further you dig into DFC and the graphite supply squeeze, the better this partnership looks. It certainly explains the confidence of the BOD with funding and shows how the comments regarding growing significant shareholder value and avoiding dilution are very much achievable with the DFC onboard.

BRES have over £6m warrants available at an average of around 7p.

With the DFC agreement signing, confirmation of SPG to battery grade can offer share price growth to make warrants attractive to warrant holders, funding the company without further dilution and seeing us through to project level funding.

I fully expect only minimal further dilution if all plays out to plan.

https://www.energy.gov/policy/articles/americas-strategy-secure-supply-chain-robust-clean-energy-transition

They have 83m warrants at an average of 7.5p. circa £6m. Priority for funding is in my opinion to drive share price up and get the warrants away. DFC grant release and/or US results confirming battery grade end product can get it there, failing that maybe an upgraded NPV to x2 as Mike discussed.

Some key things coming up:

US Testing results confirming ability to upgrade to battery grade graphite

Signing of DFC grant with first option for funding

Enhanced project design to build a bigger project to increase the NPV by >2x of the latest pre feasibility study result due to the capital support potential from DFC

Process and results of the 100tn bulk sample

Completion of DFS

Decision to mine and funding

Sorry shocking typos there on phone but get the message!

Thats not what he said. He said that at the moment giving away a part of the project is not necessary at this stage and there are more attractive options. Clearly a corporate equity raise on worse terms than a project level deal does not fit that narrative. They have newsflow coming up that can improve the value of the project so it seems like they are going to pish this as far forward to create more value before any for of funding. The fact they didnt do an equity raise on news like they have previously is a hood sign for me as they clearly feel it has more levs before doing so. They are looking at options that can deliver the best return. To say project level funding is available but not they think they can progress further without dilution at this level is a hugely bullish statement.

Its refreshing to see a company continue to reaffirm their desire to retain as much value rather than prioritise short term money in the bank to pay their salaries for another 2 years.

see confirmatory RNS on RCGH if you want confirmation its's nothing to do with ROQ

https://www.lse.co.uk/rns/RCGH/change-of-auditor-4ah8gv8z2ym1uf0.html

One PI buying in shifts it up 5%. Good sign for when the company deliver a reason for larger scale investment to come on board.

Fully expect this to end the year above at least 9p and for them to get the warrants away at the average 7-7.5p to fund the company for 2023.
All eyes on the project funding partner news due before year end. Funding has been holding this back. Clear plan if you bother to watch recent presentations and read recent news. Funding is the game changer, which seems to be coming right in time for the anticipated acceleration of the graphite shortfall.

Ask RAB if it's a spike - strategic investor bought at 5p before last 2 significant pieces of news.....

59p is a fully diluted share price target based on derisked assumptions of equity given up.

The asset value per share based on $482m npv and fully diluted shareholding would be about £2 per share.

So 59p target would equate to about 25% of the project on only 2% of the resource.