Blencowe Boosts Orom-Cross with Updated DFS

Why It Matters

The upgraded economics dramatically improve the investment case, positioning Orum‑Cross as a low‑cost, high‑margin source of graphite at a time when western buyers are seeking supply‑chain resilience away from China.

Key Takeaways

• Updated DFS lifts project NPV 15% to $1.24 billion
• Free cash flow projection doubles to $4 billion over mine life
• Capital expenditures remain flat thanks to on‑site infrastructure
• Western market shift away from Chinese graphite drives higher pricing
• $45 million funding target for Phase 1 aims start-up by 2027

Summary

Blencowe Resources announced an updated definitive feasibility study for its Orum‑Cross graphite project in Uganda, highlighting markedly stronger economics and a clear path to production.

The revised model shows a 15% rise in net present value to $1.24 billion and a free‑cash‑flow estimate that more than doubles to $4 billion over the mine’s life. Capital expenditures stay flat because most infrastructure already exists on‑site, keeping the project in the lowest percentile for both operating and capital costs. The uplift is driven by higher western graphite prices as buyers shift away from Chinese supply, and by an aggressive beneficiation strategy that upgrades concentrates into premium products.

Mike Ralston emphasized that “Western markets are moving away from Chinese graphite, creating a pricing premium for non‑Chinese, high‑purity material.” He also noted the company’s focus on keeping capex low and securing $45 million for Phase 1 to start production by 2027, with several parties already in the data room.

If the funding targets are met, the project could become one of the first African graphite mines in commercial operation, offering investors a high‑return, low‑cost exposure to a commodity poised for supply‑chain‑driven demand growth.

Original Description

Blencowe Resources has released an updated definitive feasibility study for its Orom-Cross graphite project in Uganda. The new study has boosted net present value by 15% to US$1.24 billion, and increased the projected cashflow over the life of the mine by 100% to over US$4 billion. These are big numbers, especially considering that the capex number remains the same. Meanwhile, the company is continuing funding talks with renewed confidence. Mike Ralston, Blencowe's chief executive tells Vox all about it