Member Info for Pauliewonder

Thompi - I got the same response. Didn’t answer my questions, as they didn’t answer yours

SLF - fair point maybe there is nothing to announce, but they have done sweet FA in terms of comms since achieving FDA approval, meanwhie the SP has retreated to almost year lows.

Completely agree Thompi. POLX have been working towards this for years and they cant even put forward an interview to provide a bit of context going forward. The company have done amazing work to get FDA approval and no doubt this has benefits for the company and for patients. The operational side of the business, I don't have an issue with. But its the comms aspect that has hampered the SP here. I cant for the life of me understand why they arent singing from the rooftops about this news.

The lack of silence now has peope speculating that there is a pending fund raise. Personally I don't think that that is imminent but do believe that we need an update, ideally orders but if that isnt there just yet, then an update on how things are progressing / what the strategy is going forward.

The fact that the company has said nothing is quite astounding and the only reasons I can conclude for the lack of any communication is that they are either close to announing something i.e. close period, or have a very poor comms team. Needless to say that I have contacted Wallbrook erlier this week, to which there has been raiod silence!!

Current forecast by house broker shows BRES is trading at a substantial discount currently. Target price 59p.

Blencowe Resources plc (BRES.L)* 3 Oct 2022
Price: 3.6p
MCp: £6.4m
Tck: BRES.L
Sector: Graphite / EV's
Recommendation: Buy
Price Target: 59p
Blencowe Resources (BRES.L) plc announced this morning it had received an approach from an unnamed group in China with “extensive experience in graphite� that could lead to an off-take agreement and project funding solution being reached for its Orom-Cross graphite project in Uganda.

A bulk sample of around 100 tonnes is expected to be sent to China soon, subject to the required permits being secured to export the raw material. The management noted that if a binding off-take deal can be reached with the Chinese party, then the requirement to construct an on-site pilot plant in order for potential off-takers to assess the graphite material would be removed.

Comment - Today’s news is a significant development and shows Blencowe’s graphite project at Orom-Cross is at a much more advanced stage and nearer the point of commercialisation than investors previously thought. The market’s valuation of the shares still remains incorrectly anchored in the past to that of an early development stage resources company, with a market cap of only £6.4m at a 3.6p share price. This is some distance from our own valuation and target price of 59p per share, based upon an estimated risked NPV8 model for the graphite project of US$126.5m (US$482m un-risked), as described in our research note on 19 July 2022.

With further news expected in the near term on this new approach from a potential strategic party in China and as Blencowe moves ahead through the DFS process, with the anticipation of a milestone monetisation event looking all the more realistic within the next 12-months, we continue to recommend Blencowe Resources as a ‘Buy’, with a price target of 59p per share.

Mike Ralston of Blencowe Resources discusses the synergies of their Nickel Sulphide Project Acquisition in Uganda

hxxps://audioboom.com/posts/8035706-mike-ralston-of-blencowe-resources-discusses-the-synergies-of-their-nickel-sulphide-project-acqui

For those that can't listen, I have summarised:

- Battery metals market looking very hot
- Very close to OC which makes it highly synergistic
- Incredible exploration upside
- Very excited about it - $15m spent which we are the beneficiaries of
- Asset contains three separate lenses at different depths
- Bought in at a very low entry price and only making payments with success down the line
- Nickel will be one of the key commodities going forward
- Nickel price record highs and will continue to rise
- Want to start adding value to this project
- An opportunity that we couldn't pass
- Hope the market sees the value in it as much as we do
- Over last 2 years nickel has gained traction due to EVs, will be key going forward
- Having two essential battery metals within our portfolio is hugely valuable and presents massive upside for the co going forward
- OC is still priority and is an exceptional project - on the verge of having a very good JORC resource upgrade
- Feasibility study (mid-year) goes towards getting plant in 2023
- We want to be ready to take advantage of the EV boom in 2025, not in 10 years like a lot of other mines

3 reason to invest:
1) OC working very well in terms of where its going to go
2) Added exciting Nickel project with exiting exploration upside - significant new find will definately get the markets attention
3) Prices are rising very fast - Graphite risen 25-30% over the past quarter

https://twitter.com/BlencoweRes/status/1492075824589283342

“We actually thought that the Camp Lode is the high-grade deposit and Northern Syncline will be a lot lower but we are getting fantastic results out of both, so we are very happy to see that the grades are holding firm, we are looking forward to a decent JORC upgrade”

#BRES

Agree it’s confusing although the wider market is getting a hammering today because of the Ukraine crisis and the selling is low volume - certainly doesn’t justify the fall. Good news is clearly coming. It will re rate, it’s just when this happens

https://www.proactiveinvestors.co.uk/companies/news/973754/blencowe-resources-mike-ralston-presents-drill-results-for-blencowe-at-orom-cross-973754.html
Jorc upgrade will be “significant” and the northern syncline results are “higher than we expected”. MR very bullish today.

Agree, I spoke with IR last week and they answered all of my questions same day.

Thanks for the information. That is a very poor turnout and I am surprised that just 1% of people attended. I am also surprised that it wasnt advertised by FE more widely, even if it was just on these forums, as I would love the opportunity to discuss some areas of the business or at least listen to what they have to say.

I am very bullish about BRES, but I think you hit the nail on the head re: investor sentiment. They have an amazing company, they just need to advertise it more widely.

I can't compare BRES to NEXT or NMG but I do think the following article outlines the potential of BRES. However, I think the following article outlines the potential of BRES: https://www.proactiveinvestors.co.uk/companies/news/971560/blencowe-resources-offers-chunky-margins-at-orom-cross-and-the-chance-to-ride-any-uptick-in-graphite-971560.html.

The main queries I have would be the following:
1. What impact does the POO have on costs of production
2. The firm have enough funds to get to early production (2023). How will they fund the full mining programme? debt, partnership etc.
3. What are the firm doing to promote the company, particularly now that the PEA and PFS will have been completed by mid 2022
4. What traction have they had with any end clients?
5. Do the company expect the overall "weighted selling price of between US$1,100 and US$1,300 per tonne, with the rarer jumbo flake material going for as much as US$2,500" prices still to be the case given future demand for EV etc and the recent Camp Loda results?

I am still invested because the business appears to be going from strength to strength from an operational perspective. As you say, if they can get the investor relations / promotional bit right, we will have a juggernaught on our hands (in my view).

Best of luck.

Same - didn’t even know there was a call. Would have attended as I have a decent sized position here and will keep building.

Demonstrates just how undervalued the company are at the moment. Very exciting times. Camp Lode seems like its going to materially impact the upcoming JORC. Will allow for higher grades at the early years of mining and will offer lower cost drilling due to the higher grades. Very exciting:

hxxps://www.**********.co.uk/articles/blencowe-resources-discusses-near-surface-high-grade-drilling-results-at-camp-lode-ed9a310

From 15:30 minutes onwards:
https://ukinvestormagazine.co.uk/pets-at-home-ftse-100-outperformance-and-graphite-mining-with-alan-green/
AG very bullish on BRES. Sees huge value going forward.
Summary:
Transformational year for BRES
Graphite very close to surface
At some points it sticks out of the ground
Less than 1% explored to date
What really excites me is that there is real significant upside on offer, not just on the current project but with what could be found within the licence area too
PEA net present value $317m
Estimated could see $40m EBITDA per year
Co trades on valuation of £7.2m
CAH sold out entire holding and Cameron pierce sees the current MCAP as significantly undervalued
Trading under recent raised price
At some point this will turn around
Upgraded JORC resource imminent
Really exciting step forward
Hugely undervalued I think
Pick shares up at this price you can’t go wrong
Seeing production from BRES will see a very bright future

Agree this looks to be massively undervalued at the current market cap. I keep thinking that this will catch the attention of the wider market at some point but it never seems to do that. If it continues to stay undervalued, as we get closer to first production, this will be gobbled up, I wouldimagine at multiple times the current SP. Happyto continue to accumulate at these prices.