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They have not spent a 7 figures sum on a drill campaign just to fill the gap in newsflow.

They could build 3 projects the size of the $1.1bn npv project.

PJ there is a slide in the recent presentation… they are exploring using a fleet of sub 50t capacity electric prime movers as part of the green strategy

Funding P1 now would feel a bit like selling a 5 bedroom house at a valuation of a 5 bedroom house when you’re in the process of adding an extension for another 3 beds. With land to build another 50 houses.

I am confident they are doing all they can to achieve the best valuation, rather than the fastest offer. It is looking like beehive could be the most suitable first target which could improve the project financials further from the current plan.

This is going to be a substantial project with a substantial deal coming at some point, and it wont be too long to wait IMO

Sharp recovery to the 50 day ma. Push through it and off it goes.

Beehive results

Behive jorc

P1 funding/possible full project funding

Offtakes including brand names

Will be seeing new highs again very soon IMO

Couple of observations…. Brings forward some downstream beneficiation into P1

And also removes the other funding options they have and all about DFC.

They couldn’t spell out any clearer whats happening here.

All along the plan has been to go bigger and bolder. Thats what the drill programme is for, the JORC updates.

Retaining 100% equity to this late stage.

This is one of if not the most significant graphite project in the world.

Recent statement from the company confirm:

JORC resource likely to be in excess of double that which the $1.1bn project is based on

Confident in finding a finance solution

Working with brand names regarding offtake

Beehive proving an extremely exciting prospect and maybe the most valuable area…. Not even priced in!

Just see 7p as a gift like 3p was an obvious gift and a misvaluation.

There is a big deal landing here in 2026.

Found its way back to the 50 day ma and still in an uptrend. Very confident the newsflow with push that new high even higher before long.

Iyan added 17mt. I would think beehive may even add more, but at the same that gets it above 60mt. Starts to become a substantial asset at that level opens new doors. Would be 130% up on the JORC resource the $1.1bn NPV is based on. And at a higher average grade.

Blaming warrants is getting boring! This was a necessary evil to keep the company funded and moving forward. It they are dumping now they can only do it once. We had material shareholders selling out around 6-7p mark and then we ran up to 12p when they were done. So as you say it just holds price at a level where people can add more comfortable. I am more comfortable buying today than ever and i have been building from 4p down to 3p.

At the end of the day, the partners will value the project and at some point we will get a valuation based on the project rather than based on the dysfunctional, underwhelming equity markets we have today.

Yeah i think as others have suggested, the longer we are waiting the more likely P1 and P2 funding come together. But there will be some urgency soon to get the ball rolling.

In my opinion, they are doing this JORC upgrade for a reason and it’s only adding value. Early comments were that they don't need these drill results and they are not part of the project. But now it seems these new deposit JORCs are a prerequisite to something bigger. They are constantly adding value, so the economics only keep shifting more in our favour when negotiating funding, which is key when their are options.

Either way, it’s an exciting phase and i trust the team will get the best result they can in terms of a funding deal. And the mcap simply has to react.

Valuation is difficult because with P1 production and proof of concept, the enterprise value of the rest of the project will go up considerably. Especially with some big names involved. And that by the time P1 is in production you would expect P2 funding to be secured.

I still think the best valuation method is using the NPV10 of $1.1bn and risk adjusting. We are currently at 5% npv, should be higher. Mike R suggests it should be up to 30% of NPV on DFS. Then the wuestion is how do you value Iyan and Beehive, not included in the NPV.

Simple fact…. I would probably be more confident today buying at todays price than any other time before. Even at 3p, you believe what you believe, and up through 4p, 5p, etc….

But the confidence we have in the project and the ease with which it pushed on to 12p really makes this a comfortable buy

Existing Jorc reserve delivers a $1.1bn project.

Upgraded the resource by 66%

further upgrade to come shortly

Still only 2% of the licence drilled!

Estimates suggest circa 2bn tonnes of graphite.

And the quality of the graphite is of the highest order.

Oh and Capex requirement is very low. 96% IRR

Oh and opex is very low.

Oh and its one of few new projects in the pipeline at a time graphite demand is growing

And its one of few outside china where the race to secure ex china supply is on

Just let that sink in. This will be one of if not the most significant graphite mines in the world.

Question is what is it worth?

Answer… who knows…. But i guarantee what ever % we retain will be multiples of todays MCAP

Nothing stopping US investors from investing via LSE.

Generally you list on markets to raise money rather than reach new investors, and i dont believe raising a large amount via equity markets is the route they are looking at. Yes US markets tend to price companies more favourably, but at the end of the day nothing stopping a US investor buying. If their goal is to eventually sell Orom Cross, listing on another exchange would be a time consuming and costly exercise that is not necessary.

IMO these results will have a significant impact.

China exports circa 500,000k tonnes of graphite per year. Demand is set to grow. Shift from china is accelerating. BRES producing 50k tbs phase 1, 70k tns phase 2 and up to 175k by 2032 is excellent and indeed a $1.1bn proposition.

But the need and opportunity is much greater. Orom Cross has the capability of being much bigger. Accelerate capacity and increase mine life. The phased plan in my opinion is out of date and something the BOD pulled together to deliver a scalable project that they can finance. But the profile of Orom Cross is growing bigger and quicker than they anticipated, and i believe the players involved are thinking bigger than this plan. There is a need to replace the china market as soon as possible, and i believe that these results are proving that Orom Cross can deliver a bigger project more quickly to replace a larger proportion of the china supply.

When you look at other projects it makes it even more remarkable to see Orom cross $1.1bn NPV10, $160m capex and 96% IRR. Its an unbelievable investment case. But it is even stronger than that because of the scale not built in, and the political importance of the asset. Theres an argument for using NPV8 as the risk seems to be significantly reducing by the day

I think its pretty obvious they are working towards an accelerated and larger production capacity, probably with a view to signing up material offtakes.

I feel like something real big could be landing soon. Combine P1 and P2 and bring forward the SPG plant with DFC backing. I think this is already bigger than the phase 1 plan. DFC have had changes since the TAG grant with a change in remit and a change in management. Tariffs and other macro events are increasing the need to non china supply. This latest drill campaign is showing Orom cross has scale. I cant see them doing this in half measures. Go big and have a secure quality supply. My guess is that they have P1 funding options in their back pocket and are now going to the DFC to talk through as they have first refusal. I cant see DFC not exercising their right to first refusal.

DFC are getting active.

Worth a reminder BRES already have a formal letter of interest from DFC to provide project financing per 29.01.24 RNS off the back of the TAG. 2 years down the line with a mega DFS delivered, it seems natural that the DFC relationship is ready to move to the next level.

https://www.dfc.gov/media/press-releases/dfc-board-approves-new-investments-bolstering-regional-stability-economic

Its possible they could purchase a stake but there is no need to give up a % for free. Free carry applies to new licences from Oct 2022. Government are already supportive and this project will bring long term benefits to Uganda without the free carry. If the government want to grow as a mining diristiction they need to play by their own rules.