Blencowe Resources (BRES) H1 2024 earnings summary

Executive summary

• Progress made on the Orom-Cross Definitive Feasibility Study (DFS), with significant technical milestones achieved, including bulk sample processing and product qualification for offtake contracts.

• Received a US$5 million grant from the US Development Finance Corporation (DFC), with US$3 million received to date, supporting DFS costs and enhancing project credibility.

• Ongoing work in Uganda on infrastructure, community relations, and environmental updates, targeting DFS completion by end-2024.

• Facing macroeconomic challenges and a flat UK market, but remains positive on medium- and long-term graphite demand.

Financial highlights

• Loss after tax for the six months ended 31 March 2024 was £725,840, compared to £486,076 for the same period last year.

• Operating loss for the period was £706,155, up from £463,066 year-over-year.

• Administrative and other expenses totaled £682,486, up from £446,424 year-over-year.

• Cash and cash equivalents at period end were £444,991, up from £130,740 at 31 March 2023.

• No trading income was earned; expenditure focused on asset development.

Outlook and guidance

• Expectation to receive the final US$2 million of the DFC grant over the next six months to complete the DFS.

• DFC may play a lead role in arranging project financing for Orom-Cross, potentially providing a full funding solution.

• Targeting DFS delivery by end-2024, contingent on continued funding.