REG - Blencowe Resources - Half-year Financial Report
Tue 13:00
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RNS Number : 7421F Blencowe Resources PLC 26 May 2026
Date: 26 May 2026
Blencowe Resources Plc
("Blencowe" or the "Company")
Interim Consolidated Financial Statements
for the six month period ended 31 March 2026
The Company is pleased to announce its Interim Results for the six-month
period to 31 March 2026.
Electronic copies of the report will be available at the Company's website
www.blencoweresourcesplc.com (http://www.blencoweresourcesplc.com)
For further information please contact:
Blencowe Resources www.blencoweresourcesplc.com (http://www.blencoweresourcesplc.com)
Sam Quinn Tel: +44 (0) 1624 681 250
info@blencoweresourcesplc.com
Investor Enquiries Tel: +44 (0) 7891 677 441
Sasha Sethi sasha@flowcomms.com (mailto:sasha@flowcomms.com)
Tavira Securities Limited Tel: +44 (0)203 192 1733
Jonathan Evans jonathan.evans@tavirasecurities.com
Interim Management Report
This report covers the six month period from 1 October 2025 to 31 March 2026,
and subsequent events to 26 May 2026.
During this period the Company has been Blencowe has been focused on
completion of the Definitive Feasibility Study (DFS) for the Orom-Cross
graphite project, completion of the Stage 7 drilling programme, identifying
new offtake partners and launching its project financing strategy to take
Orom-Cross into first stage production, targeted for 2027.
The DFS was completed in December 2025 with considerable success, highlighted
by a US$1.087 billion Net Present Value10 and an IRR10 of 96% - both are
exceptional results which underline the value in both the mining operation as
well as the proposed downstream beneficiation strategy to purify graphite
products. All this is completed for a capital expenditure of US$170 million,
which includes the beneficiation facility and all Orom-Cross ramping up to
commercial scale production. This capital amount is considered low by peer
comparison.
The DFS remains work in progress with value enhancement happening at all times
and an updated DFS will be announced to market in the near term taking into
account various factors that have changed in the past six months. Orom-Cross
remains a standout graphite project with many fundamental key advantages that
differentiate it from its peers, which provide it with a better chance of
success once operations commence. This includes low percentile capital spend
to start up as well as low percentile operating costs once in ramped up
production.
The Stage 7 drill programme was completed in Q4 2025, and drilling results
have been flowing through continuously as labs complete their work, providing
a steady news flow that highlights the large scale graphite deposit within
Orom-Cross. Two new deposits were discovered in this programme - Iyan and
Beehive - and both have delivered significant results. Iyan added a further
16.9Mt at 6.0% TGC and Beehive a further 21.3Mt at 6.58% TGC - together a 168%
increment to JORC Resource for a revised project total of 64Mt at 6.03% TGC as
at May 2026. JORC Reserves were also increased to 23.08Mt at 5.18% TGC and
these added tonnes make a difference to the mineable quantity for the project.
Furthermore, Blencowe drilled 6 holes (3 at Iyan and 3 at Beehive) below the
30 metres depth all holes have been drilled to date, down to 110 metres to
consider depth extensions. All 6 holes were in near-constant mineralization
down to end of holes and all ended in graphite, which provides a strong
indication of the quantity of graphite that sits below the current deposits,
and what may be drilled into Reserves ahead as and when further mineable
tonnes are required.
All in all, this was a very successful drill programme and with nearly 40Mt
added as JORC Resources at higher grades for under US$10/tonne this is an
excellent result that sets up Blencowe for the future.
Work has continued at all times on identifying offtake partners including the
Company entering into non-binding offtake agreements. As at May 2026, the
Company has already allocated all of the P1 Production requirements in sale
agreements (up to 20,000tpa concentrates) and now is adding to this focusing
on the larger P2 Production amounts (70,000tpa concentrates). All sale
contracts will move to binding agreements once project finance funding is in
place and Blencowe is confident of product delivery. The high quality of
Orom-Cross end products is proving to be very valuable in advancing these
relationships and the Company is confident this offtake exercise will gather
momentum once project financing funding is secured to commence building the P1
Production facilities. The bulk sample test work completed in 2025 has
proven to be of significant value in this process and Blencowe continues to
provide samples to new interested potential buyers worldwide.
The Company is focused on selling its graphite product into western markets as
a priority as they generally pay higher prices although sales into Asian
markets will also be considered to provide a well-rounded sales market. New
product lines are being tested all the time and Blencowe has added micronised
products and industrial diamonds to its list most recently, with successful
testing of Orom-Cross graphite in rocket nozzles opening doors to further
defense applications.
The Company's next hurdle is to close the project financing funding of
approximately US$45 million to commence P1 Production in 2027. A variety of
funding strategies have been considered, including both debt and equity, and
Blencowe will continue to work towards delivering tangible results as soon as
possible. There are several interested parties considering investment and
going through the due diligence process and Blencowe will update the market
once these options progress to the next stage.
The market has responded favorably and the Company's share price and market
capitalisation reflect the progress made in 2025. The Company has received the
support of existing and new shareholders during the period and will continue
to work on adding further new institutional investors. The Company never takes
success for granted, despite ownership of a world class asset in a safe
location within a graphite market that is expanding fast, and the executive
team will continue to add value wherever it can to deliver the best possible
results and chances for success ahead.
We thank our shareholders and other stakeholders for their continued support,
and we look forward to further success for the Company as we achieve all
milestones.
Mike Ralston
Chief Executive Officer
Responsibility Statement of the Directors in respect of the Interim Report
The Directors are responsible for preparing the Interim Financial Statements
in accordance with applicable law and regulations. In addition, the Directors
have elected to prepare the Interim Financial Statements in accordance with
International Financial Reporting Standards ("IFRSs"), as adopted by the
United Kingdom ("UK").
The Interim Financial Statements are required to give a true and fair view of
the state of affairs of the Group and of the profit or loss of the Group for
that period.
In preparing these Interim Financial Statements, the Directors are required
to:
· select suitable accounting policies and then apply them consistently;
· present information and make judgements that are reasonable, prudent
and provides relevant, comparable and understandable information;
· provide additional disclosures when compliance with the specific
requirements in IFRS is insufficient to enable users to understand the impact
of particulars transactions, other events and conditions on the entity's
financial position and financial performance; and
· make an assessment of the Group's ability to continue as a going
concern.
The Directors are responsible for keeping proper accounting records that are
sufficient to show and explain the Group's transactions and disclose with
reasonable accuracy at any time its financial position of the Group to enable
them to ensure that the financial statements comply with the requirements of
the Companies Act 2006. They have general responsibility for taking such steps
as are reasonably open to them to safeguard the assets of the Group and to
prevent and detect fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the
corporate and Interim Financial Statements. Legislation governing the
preparation and dissemination of Interim Financial Statements may differ from
one jurisdiction to another.
We confirm that to the best of our knowledge:
· the Interim Financial Statements, prepared in accordance with
International Financial Reporting Standards as adopted by the UK, give a true
and fair view of the assets, liabilities, financial position and profit or
loss of the Group for the period;
· the Director's report includes a fair review of the development
and performance of the business and the position of the group, together with a
description of the principal risks and uncertainties that they face; and
· the interim report and financial statements, taken as a whole,
are fair, balanced and understandable and provide the information necessary
for shareholders to assess the group's performance, business model and
strategy.
Consolidated Statement of Comprehensive Income for the six-month period ended 31 March 2026
6-month period ended 6-month period ended 12-month period ended
31 Mar 2026 31 Mar 2025 30 Sep 2025
(Unaudited) (Unaudited) (Audited)
Notes GBP GBP GBP
Exploration costs (107,005) - (67,444)
Impairment of intangible assets -
Administrative fees and other expenses 5 (910,929) (161,205) (1,468,799)
Operating loss (1,017,934) (161,205) (1,536,243)
Finance costs (23,503) (23,363) (46,462)
Loss before tax (1,041,437) (184,568) (1,582,705)
Income tax - - -
Loss after tax (1,041,437) (184,568) (1,582,705)
Other comprehensive income
Exchange differences on translation of foreign operations (22,441) (36,489) 170,299
Other comprehensive loss, net of tax (22,441) (36,489) 170,299
Total comprehensive loss (1,063,878) (221,057) (1,412,406)
Basic and diluted loss per share (pence) 10 (0.31) (0.09) (0.54)
The accompanying notes form an integral part of the Interim Financial
Statements.
Consolidated Statement of Financial Position as at 31 March 2026
As at As at As at
31 Mar 2026 31 Mar 2025 30 Sep 2025
(Unaudited) (Unaudited) (Audited)
Notes GBP GBP GBP
Non-Current Assets 6 13,593,810 10,157,290 10,701,212
Current assets
Trade and other receivables 7 62,493 63,534 171,963
Cash and cash equivalents 2,133,021 942 868,284
Total current assets 2,195,514 64,476 1,040,247
Total assets 15,789,324 10,221,766 11,741,459
Current liabilities
Creditors: Amounts falling due within one year 8 (401,147) (979,757) (497,216)
Surface liability 9 (118,828) (140,372) (142,139)
Total current liabilities (519,975) (1,120,129) (639,355)
Non-current liabilities
Surface liabilities 9 (817,320) (852,412) (858,785)
Total liabilities (1,337,295) (1,972,541) (1,498,140)
Net assets 14,452,029 8,249,225 10,243,319
Equity
Share capital 11 2,751,273 1,755,471 2,137,753
Share premium 11 19,226,748 11,934,727 14,196,324
Warrants reserves 386,205 126,342 757,561
Translation reserve 237,436 53,163 259,877
Retained earnings (8,149,633) (5,620,478) (7,108,196)
Total equity 14,452,029 8,249,225 10,243,319
The accompanying notes form an integral part of the Interim Financial
Statements.
Consolidated Statement of Changes in Equity for the six-month period ended 31 March 2026
Share capital Share premium Warrants reserves Accumulated losses Translation reserve Total equity
GBP GBP GBP GBP GBP GBP
Balance as at 30 Sep 2024 1,423,759 9,377,229 428,342 (5,525,491) 89,579 5,793,418
Total comprehensive loss for 6 months
Loss for the period - - - (184,568) - (184,568)
Exchange differences on translation of foreign operations - - - 89,581 36,416 53,165
Total comprehensive loss - - - (94,987) 36,416 (131,403)
Contributions from equity holders
New shares issued 331,712 2,578,909 - - - 2,910,621
Share issue costs - (21,411) - - - (21,411)
Warrants reserve - - (302,000) - - (302,000)
Total contributions from equity holders 331,712 2,557,498 (302,000) - - 2,587,210
Balance as at 31 Mar 2025 1,755,471 11,934,727 126,342 (5,620,478) 53,163 8,249,225
Total comprehensive loss for 6 months
Loss for the period - - - (1,487,718) - (1,487,718)
Exchange differences on translation of foreign operations - - - - 207,714 207,714
Total comprehensive loss - - - (1,487,718) 207,714 (1,280,004)
Contributions from equity holders
New shares issued 382,282 2,488,319 - - - 2,870,601
Share issue costs - (226,722) - - - (226,722)
Warrants reserves - - 631,219 - - 631,219
Total contributions from equity holders 382,282 2,261,597 631,219 - - 3,275,098
Balance as at 30 Sep 2025 2,137,753 14,196,324 757,561 (7,108,196) 259,877 10,243,319
Consolidated Statement of Changes in Equity for the six-month period ended 31 March 2026 (continued)
Share capital Share premium Warrants reserves Accumulated losses Translation reserve Total equity
GBP GBP GBP GBP GBP GBP
Balance as at 30 Sep 2025 2,137,753 14,196,324 757,561 (7,108,196) 259,877 10,243,319
Total comprehensive loss for 6 months
Loss for the period - - - (1,041,437) - (1,041,437)
Exchange differences on translation of foreign operations - - - - (22,441) (22,441)
Total comprehensive loss - - - (1,041,437) - (1,063,878)
Contributions from equity holders
New shares issued 613,520 5,263,276 - - - 5,876,796
Share issued costs - (232,852) - - - (232,852)
Warrants reserves - - (371,356) - - (371,356)
Total contributions from equity holders 613,520 5,030,424 (371,356) - - 5,275,588
Balance as at 31 Mar 2026 2,751,273 19,226,748 386,205 (8,149,633) 237,436 14,452,029
The accompanying notes form an integral part of the Interim Financial
Statements.
Consolidated Statement of Cash Flows
for the six-month period ended 31 March 2026
6 months ended 6 months ended 12 months ended
31 Mar 2026 31 Mar 2025 30 Sep 2025
(Unaudited) (Unaudited) (Audited)
Notes GBP GBP GBP
Operating activities
Loss after tax (1,041,437) (184,568) (1,582,705)
Finance costs 23,503 23,363 46,462
Share based payment/ (fair value adjustment on warrants) (371,356) (302,000) 329,219
Unrealised currency translation (109,780) (84,348) 96,264
Changes in working capital
Decrease/(increase) in trade and other receivables 7 109,469 (39,092) (147,523)
Increase/(decrease) in trade and other payables 8 (119,381) (35,199) (590,973)
Net cash flows from operating activities (1,508,982) (621,844) (1,849,256)
Investment activities
Government grant 6 - - 924,272
Investment in exploration assets (2,308,763) (2,381,118) (2,338,878)
Net cash flows from investment activities (2,308,763) (2,381,118) (1,414,606)
Financing activities
Advance payment for share capital - - 75,000
Shares issued (net of issue cost) 5,082,482 2,889,210 3,942,452
Net cash flows from financing activities 5,082,482 2,889,210 4,017,452
Increase in cash and short-term deposits 1,264,737 (113,752) 753,590
Cash and short-term deposits brought forward 868,284 114,694 114,694
Cash and cash equivalents at end of period 2,133,021 942 868,284
The accompanying notes form an integral part of the Interim Financial
Statements.
Notes to the Financial Statements for the six-month period ended 31 March 2026
1. General
Blencowe Resources Plc (the "Company") is a public limited company
incorporated and registered in England and Wales on 18 September 2017 with
registered company number 10966847 and its registered office situated in
England and Wales at 167-169 Great Portland Street, Fifth Floor, London,
England W1W 5PF.
The Group did not earn any trading income during the period under review but
incurred expenditure in developing its principal assets.
The Consolidated Interim Financial Statements of the Company for the six-month
period ended 31 March 2026 comprise the financial statements of the Company
and its subsidiaries (together referred to as the "Group").
2. Accounting Policies
Basis of preparation
The Interim Financial Statements of the Group are unaudited condensed
financial statements for the six-month period ended 31 March 2026.
The accounting policies applied by the Group in these Interim Financial
Statements, are the same as those applied by the Group in its consolidated
financial statements and have been prepared on the basis of the accounting
policies applied for the financial year to 30 September 2025 which have been
prepared in accordance with IFRS adopted by UK. The Group Financial Statements
have been prepared using the measurement bases specified by IFRS each type of
asset, liability, income and expense.
The Group Financial Statements are presented in GBP, which is the Group's
functional currency. All amounts have been rounded to the nearest pound,
unless otherwise stated.
Government grants
The Group is recognising government grants. Government grants are recognised
once the entity has complied with conditions attaching to them and they have
been received. Government grants are accounted for using the capital approach
under which a grant is recognised outside the profit and loss. Government
grants related to assets, are presented in the statement of financial position
by deducting the grant in arriving at the carrying amount of the asset. The
grant is recognised in profit or loss over the life of a depreciable asset as
a reduced depreciation expense.
Comparative figures
The comparative figures have been presented as the Group Financial Statements
cover the 6-month period ended 31 March 2025 and the 12-month period ended 30
September 2025.
3. Critical accounting estimates and judgments
In preparing the Group's Interim Financial Statements, the Directors have to
make judgments on how to apply the Group's accounting policies and make
estimates about the future. The Directors do not consider there to be any
critical judgments that have been made in arriving at the amounts recognised
in the Group Financial Statements.
4. Significant accounting policies
The accounting policies adopted are consistent with those followed in the
preparation of the annual financial statements of Blencowe Resources Plc for
the year ended 30 September 2025. A copy of these financial statements is
available on the Group website at https://blencoweresourcesplc.com/
(https://blencoweresourcesplc.com/)
5. Administrative fee and other expenses
6-month period ended 6-month period ended 12-month period ended
31 Mar 2026 31 Mar 2025 30 Sep 2025
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Directors' remuneration 384,700 85,028 170,453
Professional fees 248,305 100,484 406,568
Salaries 187,500 75,000 142,500
Listing fees 171,326 66,090 140,331
Audit fees 25,559 27,945 48,945
Surface liability adjustment - - (24,710)
Share based payments/ (fair value adjustment on warrants) (371,356) (302,000) 329,219
Administration fees 47,030 23,500 58,500
Broker fees 101,603 23,817 25,036
Travelling expenses 60,159 35,113 50,377
Miscellaneous fees 153,401 29,508 7,708
Foreign currency (gain)/loss (97,299) (3,280) 113,839
Total 910,929 161,205 1,468,799
The Group had two employees who are key management personnel and three
Directors. The Directors and the key management personnel's remuneration
related solely to short term employee benefits.
The £371,356 Share based payments/ (fair value adjustment on warrants) is an
adjustment of the options that were issued prior however reversed post year
end and reissued post year end and exercised by the directors and management
during the same period.
6. Non-Current assets
For the period ended 31 March 2026 intangible assets represents capitalised
costs associated with the Group's exploration, evaluation and development of
mineral resources net of any Government grants received.
As at As at As at
31 Mar 2026 31 Mar 2025 30 Sep 2025
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Exploration assets 17,305,172 12,944,380 14,412,574
Grant from US Government (Refer below) (3,711,362) (2,787,090) (3,711,362)
Total 13,593,810 10,157,290 10,701,212
The company signed a US$5 million agreement with the U.S. International
Development Finance Corporation ("DFC") in order to provide substantial
funding for the Orom Cross Definitive Feasibility Study programme, via a
Technical Assistance Grant ("TAG"). The DFC is a proxy for the US Government
which funds the organisation and ultimately sets its vision, parameters and
funding distribution. DFC payments will be made as agreed feasibility study
milestones are achieved. As part of the US$5 million Technical Assistance
Grant ("TAG") the DFC has a right of first refusal on commercial terms to
arrange project financing for the Orom-Cross project, which may deliver
Blencowe with a full funded solution to bring Orom-Cross into production with
support from a major financial institution. The agreement is subject to
various events of default.
7. Trade and other receivables
As at As at As at
31 Mar 2026 31 Mar 2025 30 Sep 2025
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Other receivables 29,527 25,806 147,603
Prepayments 32,966 37,728 24,360
Total 62,493 63,534 171,963
8. Creditors: Amounts falling due within one year
As at As at As at
31 Mar 2026 31 Mar 2025 30 Sep 2025
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Payables 349,244 742,671 269,940
Advance payment of share capital - - 75,000
Accruals and provision 22,500 22,000 45,755
Ugandan taxes 29,403 215,086 106,521
Total 401,147 979,757 497,216
9. Surface liabilities
Blencowe Resources Uganda Limited, the Company's subsidiary entered into an
agreement for surface rights over the land in the mineral area of the licence.
The land owners granted Blencowe Resources Uganda Limited a 49-year lease over
an area. The liability to the land owners is to be paid in 8 instalments at
defined dates with the final payment due in 2035.
As at As at As at
31 Mar 2026 31 Mar 2025 30 Sep 2025
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Total payable at the beginning of the period 1,000,924 929,136 929,136
Change in estimate (15,116) - 25,640
Payments (15,819) - -
Interest charged during the period 23,503 23,363 46,462
Exchange loss on valuation (73,163) 40,285 (314)
Total payable as at period end 936,148 992,784 1,000,924
Analysis between current and non-current liability
Payable within 12 months 118,828 140,372 142,139
Payable after 12 months 817,320 852,412 858,785
936,148 992,784 1,000,924
The value of the lease is measured at the present value of the contractual
payments due to the lessor
over the lease term, with the discount rate of 5%.
10. Loss per share
The calculation of the basic and diluted loss per share is based on the
following data:
6-month period ended 6-month period ended 12 month period ended
31 Mar 2026 31 Mar 2025 30 Sep 2025
(Unaudited) (Unaudited) (Audited)
Earnings GBP GBP GBP
Loss from continuing operations for the period attributable to the equity (1,041,437) (184,568) (1,582,705)
holders of the Group
Number of shares
Weighted average number of Ordinary Shares for the purpose of basic and
diluted earnings per share
330,852,107 240,954,698 295,608,560
Basic and diluted loss per share (pence) (0.31) (0.09) (0.54)
There is no material impact on the Group's basis or diluted earnings per share
and no impact on the total operating, investing or financing cashflows for the
half year ended 31 March 2026.
There are no potentially dilutive shares in issue.
11. Share capital
Number of shares issued Nominal value per share Share capital Share premium Total share capital
GBP GBP GBP GBP
As at 30 Sep 2024 209,418,470 0.005 1,432,759 9,377,229 10,800,988
Issue of Ordinary shares 142,798,607 0.005 713,994 5,067,228 5,760,389
Share issue costs - - - (248,133) (248,133)
As at 30 Sep 2025 369,217,077 0.005 2,137,753 14,196,324 16,334,077
Issue of Ordinary shares 122,703,759 0.005 613,250 5,263,277 5,876,797
Share issue costs - - - (232,852) (232,852)
As at 31 March 2026 491,920,836 0.005 2,751,272 19,226,749 21,978,021
12. Related party transactions
There are no related party transactions during the period except for the
Directors' remuneration, which have been disclosed in note 5.
Sam Quinn is a director and shareholder of the Company and a Director of
Lionshead Consultants Limited. During the period, Lionshead Consultants
Limited charged fees for consultancy fees of £90,000 (31 March 2025: £40,000
and 30 Sep 2025: £60,000).
13. Events after the reporting date
On 7 May 2026, it was announced that graphite concentrate from Orom-Cross
Graphite Project in Uganda was being used in a rocket component testing
programme in the United States, with the initial firing successfully completed
and early observations indicate encouraging performance in high temperature
applications.
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