Blencowe Resources (LSE: BRES) recently announced a significant enhancement to the economics of its flagship Orom-Cross Graphite Project in Uganda, reinforcing the project's growing strategic importance within the global critical minerals sector and at a time when emerging advanced tier 1 criticals minerals projects are hard to find.

The updated commercial model underpinning the Definitive Feasibility Study (DFS) has increased the project's Net Present Value (NPV10) by 15% to US$1.254 billion, while projected lifetime free cash generation has more than doubled to US$4.47 billion.

Perhaps most impressively, these gains have been achieved without any increase in the capital required to develop the project.

More Value, Same Capital Cost

The updated DFS demonstrates how Orom-Cross is evolving beyond a conventional graphite development.

Key financial improvements include:

• NPV10 increased to US$1.254 billion
• Net free cash flow increased to US$4.47 billion
• Average annual EBITDA increased to US$333 million
• Capital expenditure remains unchanged across both development phases

Phase 1 remains budgeted at US$45 million, while Phase 2 remains at US$125 million, providing what management believes is one of the most competitive capital frameworks within the global graphite sector.

The Shift Towards Higher-Value Products

The real driver behind the improved economics is not simply resource growth or commodity prices.

Instead, Blencowe is increasingly positioning Orom-Cross as a supplier of higher-margin graphite products that command significantly greater value than traditional concentrate sales.

The revised model incorporates:

• Additional offtake agreements
• Improved pricing assumptions
• Expandable graphite sales
• Greater volumes of purified graphite products
• Increased confidence in downstream product qualification

This strategy reflects a growing trend across Western markets, where manufacturers and governments are actively seeking alternative graphite supply chains outside China.

Demand Appears to Be Outpacing Supply

One of the more interesting observations from the update is management's view that Orom-Cross is increasingly constrained not by what it can produce, but by what it can successfully contract and sell into premium markets.

With product qualification advancing and commercial discussions continuing, the company believes demand for purified graphite products will continue to grow as supply shortages emerge across Western markets.

This is particularly relevant for products such as:

• Uncoated Spheronised Purified Graphite (USPG)
• Expandable Graphite
• Other specialist graphite applications

These higher-value products now form a central part of the project's long-term commercial strategy.

Strategic Tenders and Additional Upside

Beyond the current DFS assumptions, Blencowe continues to pursue multiple opportunities that could further enhance project economics.

The company has submitted applications into several sizeable strategic graphite tenders, with greater clarity expected during Q3 2026.

At the same time, additional opportunities remain under evaluation, including:

• Specialist defence and aerospace applications
• Energy storage applications
• Industrial diamonds
• Ultra-high purity graphite products
• SAFELOOP battery initiatives

You can read more on how Blencowe are looking to tap into higher value markets such as aerospace and defence in our recent article — Blencowe Graphite Takes Off With Successful Rocket Test Programme

 Importantly, many of these opportunities are not currently reflected within the DFS model, leaving scope for future upside as commercial discussions progress.

Funding Discussions Continue to Progress

The next major milestone remains project funding and one that investors are eagerly anticipating.

Blencowe continues to pursue a staged development strategy designed to minimise dilution while progressing Orom-Cross toward production.

Management have confirmed that several interested Phase 1 funding groups have signed NDAs and are actively conducting due diligence through the company's data room.

The company's preferred approach remains project-level funding where possible, allowing shareholders to maximise exposure to future project value creation.

Independent Validation from Oak Securities

Shortly after the DFS update, Blencowe's joint broker Oak Securities published updated research on the company.

Oak reiterated its Buy rating with a 35.7p target price, some 4-5x higher than where the shares trade at today

The broker highlighted several key factors supporting its investment case, including the enlarged resource base at Orom-Cross, the improved project economics, ongoing funding discussions, and participation in strategic graphite tenders.

Importantly, Oak also noted that recent resource additions from both the lyan and Beehive discoveries are not yet fully reflected within the DFS calculations, suggesting further scope for future project optimisation as these deposits are incorporated into development planning.

While broker targets are not company guidance, the note provides additional third-party validation of the progress being made across the project.

A Project Moving Towards Development

Over the past year or two Orom-Cross has undergone a remarkable transformation.

The project now combines:

• A rapidly growing resource base
• Improved DFS economics
• Expanding downstream opportunities
• Increasing commercial traction
• Active funding discussions
• Growing institutional interest

As global demand for secure graphite supply continues to accelerate, Orom-Cross is increasingly positioning itself as a strategically important development project capable of supplying both traditional graphite concentrate and higher-value graphite products into Western markets.

For investors, the latest DFS update reinforces a simple message: the value of Orom-Cross continues to grow, while the pathway to development and production becomes increasingly clear.