Blencowe Resources (LSE:BRES), the AIM-listed company developing the 100%-owned Orom-Cross graphite project in Uganda, said graphite from the project is being tested in anti-radar and electromagnetic interference shielding coatings for unmanned aerial vehicles and other defence platforms.
The company is engaged with three European manufacturers of advanced aerial platforms, and one potential offtake relationship has reached an advanced commercial stage, subject to flight testing and finalised documentation.
Indicative pricing for the specialist ultra-fine M635 97% total graphitic carbon material used in the application approaches $20,000 a tonne FOB manufacturing plant, well above conventional concentrate sales.
The update follows a July visit by chief operating officer Iain Wearing to development partner American Energy Technologies in Chicago, and builds on earlier aerospace and rocket propulsion testing of Orom-Cross material.
Testing has also shown pronounced hydrophobic properties in the natural crystalline flake graphite, relevant for aerial equipment exposed to fog and rain.
Blencowe's existing non-binding offtake coverage already exceeds its planned first-phase production of 20,000 tonnes per year, and the company is now building the broader sales book needed to support second-phase production of 70,000 tonnes annually.
Funding discussions for the first production phase continue in parallel, with the company prioritising an optimal project-level structure over the fastest available capital.
"Western customers are increasingly seeking high-quality graphite products from non-Chinese sources to reduce geopolitical and supply-chain risk," said executive chairman Cameron Pearce, adding that Orom-Cross is "exceptionally well positioned for this shift."
News Intelligence what this means for the company
Blencowe has moved one anti-radar defence coating offtake into advanced commercial stage at ~$20,000/tonne—roughly 5–10× conventional graphite concentrate pricing—contingent on flight testing and final documentation. This validates a high-margin niche application for Orom-Cross material and expands the addressable market beyond the 20,000 tpa already allocated under binding P1 agreements, supporting the company's push to build a sales book for 70,000 tpa P2 production.
The defence coating pathway demonstrates pricing power and product differentiation that could materially improve project economics versus bulk concentrate sales alone. However, the offtake remains non-binding pending flight testing and documentation, and represents one customer among three European manufacturers in discussion—scale and certainty remain to be proven.
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