commissioning, page-60

Generally speaking I agree with you ACB .

My current concern is that MHM dont make any money at present but people are asking to go in debt .

Right now they are losing around $4m cash per annum .

I KNOW THE FORUM THINKS THIS IS TEMPORARY

My example of $8m estimate is not what I expect , but a best case scenario of the next 12 months , if free cash flow from Geelong reaches the targets the company anticpates .

Other MHM expenses that are not cash flow positive in the coming 12 months are costs assocaited with the silica project , overseas growth with SSM or others , exploration costs in tassie,etc ... all drain cash at this point in time

HAVING $10-15M DEBT TO REPAY will stunt the period of time it therefore takes to be earnings positive , and place pressure on the board .


I like your Mars comparism , debt was avoided until cash flow was well and truly positve and guaranteed

At this point in time nothing is guaranteed, just anticpated , much like the factors that dragged down all the property companies in the US, expected , not guaranteed.

I stand by my opinion despite the forum believing I do it as an attempt to drag the stock price down , I make the comment as this is what I anticipate will occur , and actually be good for dhareholders not negative

I believe the previous CR at $1 was very positve for shareholders , and as we can now see withthe benefitr of time , delays do occur, and reality and expectation are often poles apart.

Time will tell , and they can call an egm to raise money for all your sakes I hope they do as in my opinion cash is king , and negative cash flow debt funding is bad.