a bright future

Sorry for being a bit late with my feedback everyone.

I spent about an hour talking about MHM with Ben Mead and some of the key points I took from the discussions were:

1. These guys are very focused on wealth creation for shareholders. There is definitely a focus on minimising the dilution through share issues.

2. The placement for $3m was made to enable them to settle on the Aluminium Salt Slag facility immediately for cash. MHM has indirectly benefited from the GFC by renegotiating the price down by a significant amount. That process is imminent (waiting on finalisation of documentation).

3. Although they have not decided on the structure of any future capital raising they believe that shareholders should be given the opportunity to participate. Beyond that cash flows will be used to fund the Silica Project and exploration over their Tasmanian tenements.

4. The first plant is in Geelong near the Alcoa smelter. Negotiations are already underway for two US plants which would be larger. Although there are no regulations prohibiting the dumping of aluminium slag in the US Alcoa wants to be proactive in this regard.

5. The Geelong project will be based on a 50/50 profit share arrangement plus MHM will get a 10% management fee. So 60% of the $14m in profits will flow to MHM. This excludes the revenue from the sale of salt and aluminium oxide so there is upside to the $14m profit figure being quoted. The aluminium oxide can be sold to a smelter to be used as an input to produce more aluminium. The salt can be sold on the open market based on the price for that commodity.

6. One concern I did have is that there are no patents to protect the production process. The key component is actually an "unknown" chemical which is bought in under tight controls from an external source so their is a risk that the technology can be copied.

7. The Silica Plant decision is also imminent. Ben was unable to give specific details with regards to the level of the decision to be made by Wacker AG in October/November however my expectation is that it will be to proceed to more detailed engineering studies and project permitting.

8. It sounds like the Tasmanian government is enthusiastic given they sent a minister to Germany for discussions with Wacker AG, and why wouldn't they be with a potential 500 jobs to be created from the project.

7. There is no market price for Silica just contract prices so it is difficult to work out profits at this stage.

8. Comalco gave up the project in the 70's during one of their cyclical contraction or "core business" phases.

Anyway I'll be buying some shares progressively over coming weeks to ensure I can participate in what I view as an outstanding opportunity.

Todays performance and closing chart indicates a pullback to 30 cents is likely in coming days so I'll be aiming for that level to start building a position.

Good luck to all shareholders although I don't think you'll need too much. My sentiment changes to long term buy from now after today's action.

Cheers
Aksier.