Announcement • May 29
Blencowe Resources Updates Definitive Feasibility Study Model for Orom-Cross Graphite Project
Blencowe Resources Plc announced an update to the commercial model underpinning the Definitive Feasibility Study for the Orom-Cross graphite project in Uganda, reflecting a number of developments since the initial DFS was published in December 2025. The updated model incorporates revised assumptions and inputs since the initial DFS, including new high value offtakers, updated pricing, costings and timings, expanded reserves incorporated into the mine plan, and increased confidence in product mix and saleability based on ongoing testwork and commercial engagement. The revised commercial model increases Net Present Value10 ("NPV10") by 15%, from USD 1,087 million to USD 1,254 million over the initial 15-year life of mine ("LOM"). While IRR has moderated versus the initial model due to updated inputs (specifically timing of capital spend), the revised DFS model continues to demonstrate robust economics with increased free cash generation. Net Free Cash: +120% to USD 4,466 million over LOM with increased volumes and prices for high grade purified graphite products from beneficiation facility, reflecting global demand. Average Annual EBITDA: +45% to USD 333 million per annum. Capex: unchanged for both phases (P1 USD 45 million; P2 USD 125 million). Several new offtake agreements, including high value niche sales, now reflected within revised DFS model. Western markets actively seeking purified products ex-China supports higher volume sales expected in highest value products. Additional downstream processing pathway for expandable graphite and associated sales incorporated. Applications submitted into several sizeable graphite tenders; outcomes expected to become clearer in Third Quarter 2026. Downstream beneficiation /higher-value upgraded products remains core (including USPG and expandables). Orom-Cross is expected to scale-up production in line with expected increased demand from offtakers for both concentrates and purified products. The project is less constrained by what it can produce than by what it can contract and sell into higher-value pathways, particularly as all upgraded products are now qualified and commercial terms for these are more evident. Blencowe's long-term strategy is to maximise in-country value-add in Uganda through the production of upgraded graphite products, including USPG and expandables, supported by beneficiation capacity near Gulu. This approach aligns with Uganda's broader objectives around local processing and value addition, skills transfer and industrial development, while strengthening Orom-Cross' positioning within resilient, non-China supply chains. Upgrade and sealing works have commenced on the road from Kitgum to Orom-Cross, managed and paid for by the UK Government, improving logistics to Mombasa port. This project is expected to be completed ahead of ramp up of Orom-Cross (P2 Production) and thus supports higher volumes moved from site. A first permanent camp was completed at Orom-Cross in First Quarter 2026 to house contractors during mine construction, which will commence following funding. The Company will continue to pursue value enhancement across Orom-Cross as further test work is delivered, tenders are completed, and as strategic relationships progress. The Company has submitted applications into several sizeable, strategic graphite tenders and expects greater clarity on outcomes in the next quarter (Third Quarter 2026). Successful outcomes will underpin expected volume growth for both concentrate and upgraded product streams. Significant progress has been made within the EU's SAFELOOP initiative (developing a Gen3 lithium-ion battery for deployment in standardised EV buses across the European continent) but no sales for this initiative have been included in any DFS modelling to date. Continued improvements from higher-value niche sales and upgraded products. Additional upside under evaluation but not yet modelled include industrial diamonds, further micronisation, speciality defence/energy applications, ultra-high purity (99.99% TGC) products, tenders underway and Project SAFELOOP (all subject to commercial terms). The Company is focused on ensuring Orom-Cross is understood by a broader pool of sophisticated capital, supported by improved research coverage and institutional engagement. The combination of low upfront capex, staged development, and downstream exposure positions Orom-Cross within a limited subset of graphite projects capable of meeting both return-thresholds and strategic supply chain requirements to attract the required capital. Blencowe continues to progress two complementary funding pathways alongside ongoing commercial and development activity: Phase 1 Production (P1) - USD 45 million (project-level focus): Primary focus is securing P1 equity funding, with a preference for project-level funding to minimise dilution at the plc level. Several interested P1 investment partners have signed NDAs and are conducting due diligence in the data room as part of their internal financial decision-making processes. P1 is designed to establish an operating and sales track record and support downstream qualification from site, and to deliver pricing visibility which is critical to debt funding. Phase 2 Production (P2) - USD 125 million (predominantly debt): P2 funds ramp-up mining to scale as well as in-country downstream processing capability near to Orom-Cross and is expected to be funded predominantly via debt. Expressions of interest and diligence pathways for debt providers are underway as they typically take longer than equity-led funding. DFI-style routes, including DFC, continue to be considered as potential debt funding pathways for P2 (not considered within P1 equity). Several interested P1 funding parties have signed NDAs and are conducting due diligence in the data room. The Company is progressing all parties as efficiently as possible and will provide updates when there is substantive progress suitable for announcement. The updated DFS incorporates a refined staged plan: P1: delivers up to 20,000 tonnes per annum of 97% TGC concentrate at Orom-Cross plus up to 3,000 tonnes per annum spheronised graphite from in-country beneficiation at a proposed facility near to Gulu. P2: delivers up to 70,000 tonnes per annum of 97% TGC concentrate plus up to 10,000 tonnes per annum USPG and expandables from in-country beneficiation. All subsequent phases of growth beyond P2 Production are driven by demand and contracted sales, with Orom-Cross not constrained by potential production so much as by sell-through of higher-value product streams.