LSE-listed Blencowe Resources’ Orom-Cross graphite is being tested in advanced anti-radar and electromagnetic-interference- (EMI-) shielding applications for unmanned aerial vehicles (UAVs) and other defence platforms in Europe, with one potential offtake relationship now at an advanced commercial stage.

The company says it has engaged with three manufacturers of advanced aerial platforms, with one potential offtake progressing towards execution, subject to the completion of ongoing flight testing and final technical and commercial documentation.

The opportunity involves an application-ready dry powder pigment produced from ultrafine 97% total graphitic carbon (TGC) flake produced from the company’s Orom-Cross project, in Uganda.

Blencowe notes that commercial documentation is being progressed, with completion dependent on final technical inputs and the outcome of flight testing.

Further, the company says indicative market pricing for graphite material used in the specialist application is approaching $20 000/t free-on-board (FoB) at the manufacturing plant, highlighting the potential value of niche applications relative to conventional graphite concentrate sales.

Orom-Cross material is currently being used in high-fidelity demonstration projects in real-world application environments, with Blencowe expected to provide further updates as the potential offtake progresses towards execution.

The opportunity, the company highlights, forms part of a broader commercialisation programme under which Orom-Cross graphite has been tested across aerospace, defence and advanced materials applications.

Moreover, Blencowe says it has already secured nonbinding offtake coverage exceeding its planned 20 000 t/y Phase 1 production volumes, while continuing to optimise its sales portfolio as higher-value applications and counterparties emerge.

The company’s strategy is to progressively replace lower-value sales opportunities with higher-value product pathways where appropriate, while building the broader offtake book required to support its planned 70 000 t/y Phase 2 production target.

In parallel, discussions around Phase 1 funding are continuing, with Blencowe focused on securing a project-level funding structure that supports development of Orom-Cross while minimising dilution at the company level.

“This latest work further demonstrates the quality and versatility of Orom-Cross graphite products and the value that can be captured by moving beyond conventional concentrate sales into specialist, higher-value applications.

“Blencowe has already more than covered the 20 000 t/y Phase 1 production volume through existing nonbinding offtake agreements. Our strategy now is to continuously optimise that sales portfolio as higher-value opportunities emerge, while at the same time building the broader offtake book to support Phase 2 production,” comments Blencower chairperson Cameron Pearce.