Ann: Company Update , page-33

Hi Firsova, you've previously tried to justify MHM valuations along similar metrics, and I agree that if MHM had plateaued and was looking to continue on an even keel for the foreseeable your numbers would make sense. But MHM isn't a stable blue chip, it's a highly speculative stock (hence the crazy price fluctuations). Perhaps some more realism is setting in now after the FR debacle and over-optimistic (putting it lightly) guidance that the company issued under his leadership.

However, MHM can justify much higher valuations if they convincingly lay out a road map to large scale roll out of their technology in the USA and beyond. Proving this tech at Moolap, without the breakdowns (or continual fine tuning) and proving stable steady state processing in terms of inputs and outputs is one key element which now seems tantalisingly close. Add in a viable solution for NMP (either adding to profit by sales, or by cost neutral disposal of a now proven non-hazardous substance) and we're really motoring, it would only be a relatively small jump to designing a bespoke plant for the US with all that has been learnt in Geelong and the valuation flies.

There are of course curve balls to come, the crystaliser circuit for instance, or further issues with scaling the process up. I'm just hopeful that the new management are more transparent and reliable. They already seem much better at running a business in terms of minimising cost and focusing on the most important aspects to drive the business forward. Many have been burnt here and trust has been lost, there might be plenty of folk trying to just break even from the option conversion and get out. Hopefully once the plant is proved up further and with the filter installed and up to speed will be enough to convince the market things are back on track and the SP will start to move.

By my reckoning there's still 20000 tonnes of part processed material to clear, even with the new filter that'll take six months or so to clear, we might be onto the landfill by end of calendar year!