Blencowe Resources Plc (LSE: BRES) has published an updated Definitive Feasibility Study (DFS) for the Orom-Cross Graphite Project, located in Uganda. The optimised DFS, published in May 2026, realises a 15% increase in the post-tax Net Present Value (NPV10), compared to the previous study published in December 2025, increasing the NPV10 to US$1.25 billion with a post-tax Internal Rate of Return (IRR) of 51%.

The updated DFS centres on a two-phase operation and contains several changes compared to the previous study including revised product pricing assumptions, operational costs, and updates to the development timeline. The estimated capital cost (capex) to construct the mine at Orom-Cross remains low for both phases of the mine’s development. Phase 1 is modelled at a production level of 20,000 tonnes per annum (tpa) of 97% Total Graphite Carbon (TGC) concentrate plus up to 3,000 tpa of spheronised graphite produced at an in-country beneficiation facility, and Phase 1 has a capex of US$45 million. Phase 2, which models production increasing to 70,000 tpa of 97% TGC concentrate, plus up to 10,000 tpa spheronised and purified graphite, plus expandable graphite, from in-country beneficiation, has a capex of US$125 million.

Thesis Summary

Since the publication of the previous DFS in December 2025, Blencowe Resources has announced the results from its 6,750-metre (m) Stage 7 drill programme at the Orom-Cross Graphite Project, and defined maiden Resource Estimates at the Iyan and Beehive Deposits.

The resource estimates at Iyan and Beehive have increased the scale of Blencowe’s Resource base by 168% to a total of 64.3 million tonnes (Mt) at an average grade of 6.0% TGC.

The updated May 2026 DFS is focused on the JORC 2012 compliant Reserve Estimate for the Orom-Cross deposit of 23.1 Mt at an average grade of 5.18% TGC.

Blencowe could further improve the robust economics for the Orom-Cross Project by converting the expanded resource base into reserves to potentially extend the mine life or increase production levels.

We have updated our valuation to reflect the improved NPV at the Orom-Cross Project, and we have also taken into account changes to the valuations of the graphite peer group. As a result of these changes, we maintain our BUY rating and have increased our price target by 6% to 35.7p from 33.7p per share.