agm debreif, page-16

Rod,you have missed a few details:
- the contract is between PDC a JV company co-owned by FR;
- the problem for the stockpiled material on Alcoa's property is between Alcoa and PDC who already got paid $300 per tonne to process it but clearly has not delivered;
- the sub-contract signed between PDC and MHM (FR has a conflict of interest) is disadvantageous to MHM since MHM cannot cover its costs of processing;
- the mortgage is on our plant (because Alcoa will get $4M penalty if stockpile is not cleared by the end of 2013); this mortgage should have been on FR head and private parts - MHM does not need to tell this to Alcoa they are intelligent and understand;
- it is in MHM interest to be nice to Alcoa and process the stockpile since we want their salt slag business everywhere.


While details of negotiations between parties were not disclosed at the AGM, one could assume they involve the following:
- Alcoa should ask PDC for reimbursement of money already paid for processing to PDC because the stockpile is still on their land and negotiate with MHM to process the stockpile;
- FR has a serious conflict of interests, as a MD of MHM he signed a sub-contract with his private company for salt slag processing whereby he makes a profit while MHM makes a loss;
- with the contracts expiring next year FR can take the bags to his house in TAS or pay MHM whatever is required to process it.
- FR has no patent for the IP and MHM invested substantial capital (at least $10M by my calculation) in development of this process and continues modifications, the process made only losses under the guidance of the inventors - it would be hard for them to argue that MHM must pay anything for it particularly that FR gave himself 10M shares + options of MHM before the IPO and his private engineering company took a lot of money for implementation / modifications at Moolap.

I have spoken to FR once over the phone three years ago and he has assured me that he made his money the hard way and will look after small shareholders since he understood they invested their hard earned money. In view of the misleading info and facts covered up over the last few years FR has turned out to be greedy, deceptive, has misappropriated shareholders capital and lacks any integrity and is unfit to be an MD of a public company.

I like the original goals and the vision for the salt slag recycling business, the potential is great.
History shows that the inventors of many technologies fail to make any money out of it.
It would be ideal if FR was short of cash and had to move his shares into strong hands like he did with options to BF.