broker report, page-13

Doing some quick figures all in Euros to start with then converted back to AUD,

From pg26,

EBITDA for the Environmental Services section(Befesa) is EUR$134M.

Now on pg9 in the 2nd pie, they say that the Industrial Waste Recycling makes up 71% of the EBITDA, which equates to $95.14m.

To work out the profitability we now go to page 11 and in the 2nd pie they say that "Other Recycling? (consists of aluminium/salt slag recycling as well as industrial waste management) makes up 12%.

So 12% of the $95.14M = 11.41M this is a conservative figure because it includes industrial waste management.

"In 2009, the company treated 238,400 tonnes of salt slag" pg12

If we use the 11.41M and divide that by 238,400T and thus assuming that the recycled Aluminium waste is worth nothing(conservative) we get a profit of EUR$48 per tonne.

Now convert that $48EUR to AUD and you get $67pt.

MHM profit of $425pt compared to Befesa profit of $67pt.

It has been discussed earlier about Befesa having a higher cost base than MHM, but even if we did have to compete on cost base, we have plenty of room to move.