Blencowe Resources Share Discussion Threads

[pauliewonder] 21/8/2023 09:48

It has been 103 days since MR suggested that securing the DFC grant would take around 6-7 weeks (42-49 days). So maybe the comment relates to that. I get the feeling that there is a lot happening behind the scenes at the moment although it would be good to get an update, even if it is just to say that the company are in the final stages.

[apfindley] 21/8/2023 09:40

DFC taking its time??From 27th April 2023. Not even 4 months....and you call that a long time? Wow.

[divmad] 21/8/2023 09:11

This DFC arrangement sure is taking its time to complete.

[pauliewonder] 21/8/2023 08:01

#BRES EV battery supply chain thematic covered in Financial Times: "The search for winners in the new battery era"https://t.co/Wwc2sRqkXX

[pauliewonder] 19/8/2023 23:45

Evolution Energy have just signed a significant deal with Chinese battery anode producer BTR New Material Group:https://www.mining-technology.com/news/evolution-graphite-deal-btr/?cf-viewHowever, when you compare Evolution Energy to Blencowe, we have a far superior project (only 2% explored) although we have not as yet finalised the DFS (Evokution Energy have):Evolution Energy mineralsKey outcomes of the DFS include a post-tax net present value (NPV) of US$338 million, a 32% internal rate of return (IRR), a 17-year mine life, US$120 million in pre-production capital, and annual earnings before interest, tax, depreciation and amortisation of US$82 millionBlencowe resourcesThis follows outstanding Pre-Feasibility Study results (NPV8 US$482M: IRR8 49%) as presented to the market in July 2022, which have prompted the Company to move quickly on to this next stage of project development.  The DFS is the last step in terms of major studies prior to the board making a decision to mine.

[pauliewonder] 19/8/2023 23:26

https://smallcaps.com.au/graphite-stocks-look-oversold-diverge-lithium-cousins/Australian based article but outlines that Graphite is lagging behind Lithium but this may well change going forward. It's only a matter of time before Graphite prices explode

[pauliewonder] 19/8/2023 18:01

Anyone notice that large 1,750,000 trade that was slipped through on Friday at 13.57. Very interesting that a) it was a large buy b) they slipped it through as a late reported trade c) they got a very good price (above mid but still below full ask at the time.Interested to see what happens Monday morning...

[pauliewonder] 18/8/2023 09:45

261k just went through at 5.7p full ask.

[pauliewonder] 17/8/2023 14:52

Looks like price is 5.3p bid and 6.3p ask. Once DFC funding is agreed, you can add either a 1, 2 or 3 in front of those numbers depending on how optimistic you are. I would suggest at least mid 20s is a reasonable place to start

[goodbuyexsell] 17/8/2023 13:57

MM price 5.20p-5.70p. The spread is 8.75%. The price does not reflect Bres true value.

[apfindley] 17/8/2023 12:55

Yes manipulation by lowering the bid to widen the spread. Buys are at the ask, and mm's likely short of stock.

[pauliewonder] 17/8/2023 12:47

Thanks goodbuy. MMs have dropped the bid so showing as down today but virtually all trades are buys. Shortening supply again

[soulsauce] 17/8/2023 11:24

Thanks for posting goodbuy.

[goodbuyexsell] 17/8/2023 10:38

#SPONGE @ the money sponge

[goodbuyexsell] 17/8/2023 10:31

Found this on Twitter this morning.

Why 90% of junior mining companies will likely fail and why Blencowe could succeed!
It’s a fact that not many junior mining companies will make it to the big time but in this blog I explain why I believe Blencowe could

As junior resource investors we are presented with literally hundreds of potential investment opportunities whether they be oil and gas or junior mining companies. Picking potential winners is not easy but if you back the right company at the right stage, returns can be life-changing.

traffic industry charging car
Sadly a high portion of these so called early stage resource investment opportunities are designed such that the investor, particularly retail like you and I, will never see any meaningful return.

Yes you can trade said names and jump in on popularity windows and some do just that successfully, but the reason why most resource stocks do not make any meaningful long-term returns for shareholders is they are designed to be ‘life style’ companies and by that I mean supporting the life-style of the board and/or connected third-parties!

For example, a certain popular nickel mining company that had an asset in Russia spent the last 10 years going through the motions of scoping study to DFS etc whilst continually raising large amounts of cash via discounted dilutive placings and death spiral CLN’s (the CLN holders creamed loads of money selling stock at a no risk discount!) – did the board care? No, the CEO for example at my last look paid himself around £400k in salary and bonus!

Said company finally sold the asset returning a dividend of 1.8p per share to shareholders. Ultimately those who had invested in the company at a far higher price got back a pittance due to the continuous dilution. The chart below tells the sorry story, but the point here is, this is an example of a life style company one where the only winners are the board and the city investors who got the CLN deals!


I can name countless other junior resource stocks that have or will likely fail, so what differentiates a junior resource stock and in our case mining resource stock.

By the way it’s not all doom and gloom, I covered Horizonte Minerals a few years back when it traded at c.2p and the company went on to multi-bag for shareholders and finally achieve project finance that should see the company become a full scale mining company eventually paying handsome dividends! Another one, Afritin Mining I covered is making great strides forwards choosing the path of organic growth and one I believe will also become one of the major tin mining companies globally.

So here are a few things I consider differentiates the winners and increases chances of success:

Quality Asset – high product quality/grade with significant scale and JORC Resource, a potentially globally significant resource.

Management Team that can deliver, have done so before and who are importantly aligned and controlling share dilution with the ability to attract high quality investors.

Technical Approach: a quality development process culminating in a detailed DFS that can be taken to potential financiers and stands up to the highest level of scrutiny, or alternatively,

Organic Growth: a company that can raise Capex for a smaller-scale mining operation and grow the business organically, re-investing cash flow into the scaling up of the business.

How Blencowe shapes up currently…

Blencowe’s Orom-cross graphite project in Uganda is increasingly looking like a top tier asset with a JORC Resource of 24.5m tonnes @ 6% TGC (just 2% of overall est. resource). The results of test work to date further back up the quality of the project and we should see final results from the larger-scale bulk testing in the coming weeks.

A quality DFS is critical to Graphite mine funding

A DFS or Definitive Feasibility Study can come in different shapes or sizes depending on what outcome is required, but it should essentially culminate in all the mining studies being completed to a level where firm economic numbers are known and answer all questions that potential financiers need answered including any risks.

Some companies will simply produce a ‘desk-top’ DFS and minimal metallurgical studies, proof of concept processing etc spending a modest amount, say $1m or so. These don’t really cut the mustard and particularly with graphite project funding, probably won’t result in project financing.

Blencowe know this and this is a clear differentiator. I believe they are planning to spend over $5m on their DFS and hoping to attract a good portion of that finance from the US Government (DFC) see my previous blog whereby Blencowe have already met the DFC’s investment criteria.

In a recent catch-up I had with Mike Ralston CEO, he explained that it is absolutely critical to ‘prove-up’ your product and demonstrate this at scale and this is precisely why as part of the DFS, Blencowe have a 100 tonne bulk testing programme underway in China.

Results thus far have been extremely positive with a recent trip by the COO and Ugandan in country mining officials to a China processing facility. We should get the final results in the coming weeks.

Successful test results will further support off-take contracts and the company said this week that off-take negotiations are already happening.

So Blencowe really are ticking all the boxes now with the project quality being validated by extensive testing, a Management Team that appear to have all the right connections and an understanding of the technical approach that should culminate in a DFS fit for purpose, namely, that of obtaining final project finance which could well eventually also come from the DFC given their high interest in graphite projects in Africa.

Blencowe is in that early stage sweet-spot similar to where I covered Horizonte Minerals and looks like it could offer similar returns if they keep delivering as they have.

Don’t forget to follow me on twitter for more updates

[pauliewonder] 17/8/2023 08:49

Wonder if BRES are following my posts on ADVFN. Brought to you yesterday by PW, reflects the opportunity here though: https://twitter.com/BlencoweRes/status/1692054308181667992#BRES Important news for #graphite investors. ASX listed $EV1 sign strategic alliance with world's leading battery anode producer BTR in China. 90% of $EV1 production in offtake by BTR who also invest $4.9M for 9.9% stake

[apfindley] 16/8/2023 15:37

Sticky hands and free float are not really the same thing. By definition of free float, nothing has changed.

[pauliewonder] 16/8/2023 14:48

There can't be many free float shares kicking around now. BRES shares seem to be in the hands of sticky holders

[gisjob2] 16/8/2023 13:29

My buy was showing as a sale the other day.

[pauliewonder] 16/8/2023 12:58

Was similar with me the other day when showing as 5.5p but buys were actually 5.25p and then 5.35p.

[goodbuyexsell] 16/8/2023 12:56

12.45pm the last three trades that went through on the Green (?)were all buys. One was mine. Sales would be around 5.3p. The market makers have a 7% spread.

[goodbuyexsell] 16/8/2023 11:55

From Twitter.
Several meetings held with leading🇨7475; Chinese #Graphite offtake firms seeking both large flake & fines concentrates

☑️#BRES now approached for downstream opportunities (including SPG)

[gisjob2] 16/8/2023 11:50

The market will catch up as each hurdle is cleared.

Just a couple of weeks to wait for complete bulk sample testing results.
DFC funding for DFS
DFS
Off take or partnership agreements
Possible take over
Etc

[farrugia] 16/8/2023 11:03

if the opportunity is so great why are we at those levels?

[pauliewonder] 16/8/2023 07:51

Interesting article around a large Chinese OEM taking a stake and 90% off take agreement with an Australian company who has a graphite mine in Tanzania. The Chinese company will also provide further financing and have taken a stake in the company: https://www.todayonline.com/world/australias-evolution-energy-signs-graphite-supply-deal-china-based-btr-2233736An RNS like this for BRES would surely see us close to the 100p mark. Maybe not too far off...