Blencowe announces half-year Financial Report
This report covers the six month period from 1 October 2025 to 31 March 2026, and subsequent events to 26 May 2026.
During this period Blencowe has been focused on completion of the Definitive Feasibility Study (DFS) for the Orom-Cross graphite project, completion of the Stage 7 drilling programme, identifying new offtake partners and launching its project financing strategy to take Orom-Cross into first stage production, targeted for 2027.
The DFS was completed in December 2025 with considerable success, highlighted by a US$1.087 billion Net Present Value10 and an IRR10 of 96% – both are exceptional results which underline the value in both the mining operation as well as the proposed downstream beneficiation strategy to purify graphite products. All this is completed for a capital expenditure of US$170 million, which includes the beneficiation facility and all Orom-Cross ramping up to commercial scale production. This capital amount is considered low by peer comparison.
The DFS remains work in progress with value enhancement happening at all times and an updated DFS will be announced to market in the near term taking into account various factors that have changed in the past six months. Orom-Cross remains a standout graphite project with many fundamental key advantages that differentiate it from its peers, which provide it with a better chance of success once operations commence. This includes low percentile capital spend to start up as well as low percentile operating costs once in ramped up production.
The Stage 7 drill programme was completed in Q4 2025, and drilling results have been flowing through continuously as labs complete their work, providing a steady news flow that highlights the large scale graphite deposit within Orom-Cross. Two new deposits were discovered in this programme – Iyan and Beehive – and both have delivered significant results. Iyan added a further 16.9Mt at 6.0% TGC and Beehive a further 21.3Mt at 6.58% TGC – together a 168% increment to JORC Resource for a revised project total of 64Mt at 6.03% TGC as at May 2026. JORC Reserves were also increased to 23.08Mt at 5.18% TGC and these added tonnes make a difference to the mineable quantity for the project.
Furthermore, Blencowe drilled 6 holes (3 at Iyan and 3 at Beehive) below the 30 metres depth all holes have been drilled to date, down to 110 metres to consider depth extensions. All 6 holes were in near-constant mineralization down to end of holes and all ended in graphite, which provides a strong indication of the quantity of graphite that sits below the current deposits, and what may be drilled into Reserves ahead as and when further mineable tonnes are required.
All in all, this was a very successful drill programme and with nearly 40Mt added as JORC Resources at higher grades for under US$10/tonne this is an excellent result that sets up Blencowe for the future.
Work has continued at all times on identifying offtake partners including the Company entering into non-binding offtake agreements. As at May 2026, the Company has already allocated all of the P1 Production requirements in sale agreements (up to 20,000tpa concentrates) and now is adding to this focusing on the larger P2 Production amounts (70,000tpa concentrates). All sale contracts will move to binding agreements once project finance funding is in place and Blencowe is confident of product delivery. The high quality of Orom-Cross end products is proving to be very valuable in advancing these relationships and the Company is confident this offtake exercise will gather momentum once project financing funding is secured to commence building the P1 Production facilities. The bulk sample test work completed in 2025 has proven to be of significant value in this process and Blencowe continues to provide samples to new interested potential buyers worldwide.
The Company is focused on selling its graphite product into western markets as a priority as they generally pay higher prices although sales into Asian markets will also be considered to provide a well-rounded sales market. New product lines are being tested all the time and Blencowe has added micronised products and industrial diamonds to its list most recently, with successful testing of Orom-Cross graphite in rocket nozzles opening doors to further defense applications.
The Company’s next hurdle is to close the project financing funding of approximately US$45 million to commence P1 Production in 2027. A variety of funding strategies have been considered, including both debt and equity, and Blencowe will continue to work towards delivering tangible results as soon as possible. There are several interested parties considering investment and going through the due diligence process and Blencowe will update the market once these options progress to the next stage.
The market has responded favorably and the Company’s share price and market capitalisation reflect the progress made in 2025. The Company has received the support of existing and new shareholders during the period and will continue to work on adding further new institutional investors. The Company never takes success for granted, despite ownership of a world class asset in a safe location within a graphite market that is expanding fast, and the executive team will continue to add value wherever it can to deliver the best possible results and chances for success ahead.
