Blencowe Resources Share Discussion Threads

[hedgehog 100] 17/1/2022 13:20

17/01/2022 13:00 UKREG Blencowe Resources PLC Consolidated Africa Holding & Joint Broker

Consolidated Africa dispose of entire holding to new and existing shareholders

&

Appointment of Joint Broker

Blencowe Resources Plc (" Blencowe" or the "Company") (LSE: BRES) has been notified that Consolidated Africa Limited ("CAL") has today sold its entire holding in the Company (17,725,000 ordinary shares being 10.9% of the issued share capital) to new and existing shareholders arranged through Tavira Securities Limited ("Tavira").

CAL received 25,000,000 ordinary shares in Blencowe following its sale of the Orom Cross graphite project in 2020. CAL were locked up for one year following the IPO in June 2020.

Appointment of Joint Broker

The Company is pleased to announce that it has appointed Tavira as its joint broker. Tavira has recruited senior personnel from the Company's former broker Brandon Hill Capital Limited and Blencowe looks forward to continuing the strong relationship with the team.

Executive Chairman Cameron Pearce Commented:

"We are pleased that the share register has been strengthened following these on market share purchases. We believe with a market cap of approximately GBP6.5M, the Company is significantly undervalued, as evidenced by our recent Preliminary Economic Assessment which yielded an NPV for Orom-Cross of US$317M. In December 2021 we closed on a GBP2M fundraise at 5p per share, which has provided sufficient capital to undertake our 2022 work programme at Orom-Cross, including the completion of a Pre-Feasibility Study. An updated resource statement on Orom-Cross is due to be released later this quarter, which we expect will further increase the size and grade of the resource.

We would like to welcome Tavira Securities as co-broker and we look forward to continuing our relationship with the former senior members of the Brandon Hill team going forward.

[tomboyb] 17/1/2022 13:06

All those trades at 3.5p -

MMs looking to make a profit of those -

[tomboyb] 17/1/2022 13:04

Overhang gone -

[divmad] 17/1/2022 13:02

What trade was that just now?

[hedgehog 100] 15/1/2022 11:55

First Equity has a BRES target price of 27p, but that should be increased as the company progresses -

"Blencowe Resources (BRES.L)* 15th December 2021

Following the recent publication of Blencowe Resources’ Preliminary Economic
Assessment (PEA) on its Orom-Cross graphite project in Uganda and GM approval by
shareholders last week for a £2m over-subscribed funding at 5.0p, in this research note
we analyse the PEA’s conclusions to determine a risked based valuation and look ahead
to key news events anticipated. ...

We have used the NPV8 of $317m from the Orom-Cross PEA to determine a risked
based valuation by deducting 40% for development/resource risk, 60% for finance
risk and 25% for country risk to arrive at an estimated $57.1m (£43m) value. This
equates to a price per share for Blencowe of 27p and FEQ’s share price target. ...

A price target of 27p represents a more than 4 times uplift from the current share
price of 4.45p. The market valuation still seems anchored in the past prior to the
Company revealing a JORC resource statement and outlining its very strong economic
case for a graphite mine in the PEA announcement at the end of September.
We believe a significant market re-rating awaits Blencowe Resources, as investors
begin to appreciate the size and scale of the low-cost project being developed and its
importance in feeding the EV market with essential battery grade graphite. For these
reasons and those outlined above, we recommend the shares as a ‘Buy’ and suggest
investors position themselves in the stock. ..."

[hedgehog 100] 15/1/2022 10:48

Thanks to Trojan on LSE for flagging up this video on the Proactive Investors website yesterday -

"Blencowe Resources 'a company to watch' and could 'generate serious cash flow in the future'

Katie Pilbeam
12:10 Fri 14 Jan 2022

Mining Capital's Alastair Ford talks to Proactive London about Blencowe Resources PLC (LSE:BRES) which is advancing the Orom-Cross jumbo flake graphite project in Uganda.

He says graphite is yet to 'catch fire' in this latest round of commodity price rises which bodes well for the future of the firm. He says it's looking like they can dig it up - 'free digging' as it is called - without complications.

The firm announced today the appointment of Australian engineering firm Battery Limits to assist in the pre-feasibility study (PFS) of the Orom-Cross graphite project in Uganda.

Orom-Cross is a potential world-class graphite project both by size and end-product quality, with a high component of more valuable larger flakes within the deposit."

[divmad] 15/1/2022 08:46

I'm not really sure what else management could do, to generate better sentiment here, ahead of the PFS expected by mid year, apart from strong insider buys when allowed to do so.

[hedgehog 100] 13/1/2022 16:26

This looks like a huge and exciting graphite deposit.

That said, I'm not sure that the "2 - 3 billion tonnes graphite" wording is correct.

Surely it should be either "2 - 3 million tonnes", or "2 - 3 billion dollars"?

Either of those would be fantastic.

2 - 3 billion tonnes of graphite would also be fantastic, but would have an in-situ value of trillions of dollars!
Even 2 - 3 billion tonnes of graphite ore, at a grade of say 6%, would have an in-situ value of over a hundred billion dollars.


"2 - 3 billion tonnes graphite near to surface, with first ten years' mine life already drilled to JORC standard"




29/09/2021 06:00 UK Regulatory (RNS & others) Blencowe Resources PLC Orom Cross PEA LSE:BRES Blencowe Resources Plc

"Orom-Cross PEA Shows Potential for Long Life, Highly Profitable Graphite Project

Results of internal Preliminary Economic Assessment ("PEA") demonstrate compelling case for the development of a major new graphite project, paving the way for a Pre-Feasibility Study.

Highlights

Low operating costs and robust financials for mining operation:

-- Net Present Value (NPV 8 ) of US$317M / IRR 49% over 13-year life of mine from 2025.

-- Average nameplate production of 75,000tpa graphite sold as concentrate, with ability to extend this after further drilling.

-- Life of mine C1 operating cost of US$498/t (CIF Mombasa port) which would make Orom-Cross one of the lower cost graphite projects worldwide.

-- An initial capital cost of US$80M, inclusive of 15% contingency.

-- Orom-Cross will generate an average US$40M pa in EBITDA over life of mine at a weighted average price of US$1,050/t for the full basket of all end-products sold from 2025 onwards.

-- Cumulative post-tax net cash flow of US$351M generated over initial 13 years life of mine.

-- 4-year payback on capital.

Next Steps:

-- Work will now begin on Pre-Feasibility Study (PFS) using an independent consultant, including an upgraded JORC Standard Resource statement.

-- Sales and marketing analysis to source potential off-take partners to commence immediately.
Attractive size and scale of deposit with high quality end-product:

-- Estimated 2-3 billion tonnes flake graphite deposit at Orom-Cross, with 16.3Mt already drilled to JORC Resource standard, covering initial life of mine.

-- High grade 97-98% TGC (Total Graphite Content) concentrate proven, with low impurities, high recoveries and strong mix of jumbo/large flakes within overall end-product.

Low risk operation:

-- Shallow, free dig open pit mining operation with low strip ratio.
-- Well established, proven plant design and process to deliver high grade concentrates.
-- Key infrastructure (roads, electricity, water) all available at mine site.
-- Stable jurisdiction to develop a long-term mining venture.
-- 21 year mining licence granted in 2019 ..."

[hedgehog 100] 13/1/2022 15:45

"Forecast Demand for Flake Graphite to 2030
(Million tonnes per annum)
1.5 2.2 2.8 4.3
2020 2023 2026 2030"


"Our Highlights

• Potential world class graphite project both by size and by end product quality

• Large component of high value jumbo and large flake product

• Shallow open pit deposit = low strip ratio / free digging / low cost mining

• Uganda is a stable African country

• 21 year mining licence in place"

[divmad] 13/1/2022 13:08

And before the herd arrives.

[apfindley] 13/1/2022 13:02

Good time to accumulate whilst it's a penny below the placing price too.

[divmad] 13/1/2022 12:51

Yes, just checked the co RNSs. Mid year PFS signalled in last year's placing RNS.

[rolo7] 13/1/2022 11:59

Pfs pushed back again to h1 from q1, i will wait for seller to clear.

[pauliewonder] 13/1/2022 11:03

Picked up a few more today. 1p below the recent oversubscribed placing. Think longer terms this will be a good price to buy more

[hedgehog 100] 12/1/2022 18:31

I've just bought in here for the first time actually, Divmad.

The mining sector as a whole was overbought early last year, whereas now it's oversold.
And that create opportunities to pick up good-quality shares on the cheap.

And I think the best mining sector investments now are battery metals plays, and those which are nearer to actual production.

BRES qualifies on both those criteria, and is also well-funded after the recent placing, and with a very modest valuation.

[divmad] 12/1/2022 17:28

Have you averaged down here, HH? I have .

[hedgehog 100] 12/1/2022 15:56

At just 4.05p, nearly 20% below the recent placing price of 5p, BRES looks well oversold to me, & due a good bounce.

"A Wildly Bullish Graphite Stocks Forecast For 2022
We predict 2022 to have at least one wildly bullish cycle for graphite stocks
November 21, 2021"

[rolo7] 17/11/2021 08:03

issues in uganda capital maybe not such a safe country after all?

[apfindley] 12/11/2021 09:17

Not a bad fundraise really.This probably explains why certain twitter critters were promoting it a few weeks ago.Only a small discount, but funds the company to the end of 2022 which is beyond the feasibility study phase, by which point I would expect some parties will already be wanting to sign up for offtake early doors.

[fillipe] 21/10/2021 09:45

Interest being shown in BRES - lowest ASK is showcasing at 6.5p.

f

[ncp3] 17/10/2021 18:17

I'm not even a fan of EV but you simply can't ignore the ever-increasing global sales growth. The fundamental piece of any electric vehicle (EV) is its battery!

[rogerbirds] 17/10/2021 18:04

Globally, we are currently in the early phase of the EV revolution. As disappointingly low as the share price currently is, it ain’t rocket science to predict where this share price will head considering the already proven resource and high TGC. From my own experience, the patient investor will be more than well rewarded. The slightest whiff on an off-take agreement or strategic partnership and those selling now will be paying 10x more than the current 5.625p to buy back in here! And if you think I’m trying to ramp up this stock, note that Rio Tinto made this comment last week regarding battery metals:"Demand for battery materials has been well supported by electric vehicle growth with global sales up 151% in the first seven months of 2021. Electric vehicle adoption is being driven by all major automotive markets and benefiting from improved model variety together with the introduction of subsidies in many markets." Wakey-wakey! RB.

[texaschaser] 08/10/2021 14:04

Easy to explain why this has dropped. Sh*t company