Blencowe Resources plc (LON: BRES) has received renewed backing from its joint broker Oak Securities, which has reiterated its BUY recommendation and 35.70p target price following the company’s recent Definitive Feasibility Study (DFS) model update for the Orom-Cross Graphite Project in Uganda.
In an updated research note, Oak highlighted the substantial growth achieved at Orom-Cross following maiden resource estimates at the Iyan and Beehive deposits. The additions have increased the project’s total resource base to 64.3 million tonnes, representing a 168% increase compared with the Stage 7 resource estimate.
Importantly, Oak noted that a significant proportion of the expanded resource inventory, including the Beehive and Iyan deposits, has not yet been incorporated into the current DFS economics, suggesting further potential upside as the project advances.
The broker also drew attention to Blencowe’s phased development strategy, which separates the project into Phase 1 and Phase 2 development stages. Oak believes the immediate focus will be securing Phase 1 funding, with several interested parties currently progressing due diligence through the company’s data room.
In addition to project financing, Oak highlighted Blencowe’s participation in a number of large strategic graphite tenders. Success in these processes could support future production growth across both graphite concentrate and value-added upgraded product streams. The outcomes of these tenders are expected during the third quarter of 2026.
The Orom-Cross project is one of the largest graphite development projects in East Africa and is positioned to benefit from growing global demand for natural graphite, a critical raw material used in lithium-ion batteries, electric vehicles and energy storage technologies.
The Oak Securities research note represents Oak’s views and analysis and is not Company guidance.
The research note can be accessed here:
Comment: We are all of course licking our lips at the prospect of BRES hitting the 35.7p level, versus 8p currently. But more important and imminent than the share price quadrupling is the market appreciating the magnitude of Orom-Cross, and indeed recent expansion of the resource base.
