research & resulting questions, page-7

That is an excellent review of the announcments Investor Paul .

Your different set of eyes and asking key questions in your discussion to determine a current value on the IP and business is well due.

I have a few questions I woud appreciate your balanced opinion on .

I agree placing a PE on this business is difficult , firstly because they dont have a current profit one could bank on as yet , as until we see one fully operational quarter reflected the potential EBIT is just an estimate everyone seems to have banked .

As you mentioned , there has been numerous delays and its almost impossible to determine when they will go to fully operational at Geelong

For over 12 months they have talked as if the next quarter would see them go the EBIT from Geelong of 8.6m per annum , but that has as you state been forever delayed.

If you use the DCV of 5 years for Geelong , opposed to a PE what would you value this at ?

In addition they have opportuniies in the US , what value would you place on the current value of these oppoirtunities ?


In adding the value of the Silica business to the equation , I think there has also been a long awaited expectation on this value , but like the other business units find it difficult to place a current value on them .

If they do farm it out as I anticpate what value would shareholders in MHM receive for this asset ?

The book value of the asset in the balance sheets is certainly undervalue , however where is the real value of this in your opinion .

My view is well documented I think the current value is miles over valued , however Id appreciate your view , as you appear to have a well balanced commentary happening .

My starting point was

Geelong $30m
US (current ) $15m
Silica $15m
Value $60m market cap ( .50c per share )


If you add premium in for a US deal of $50m of company value , that still puts a value below a $1 per share

Your opinion on this would be appreciated

Hopefully we I avoid the personal attacks from those in the forum who want to attack me for asking questions on this question

If I am miles out at the 50c valuation , which clearly the majority in the forum believe I am , and the share price reflects , how the market/forum has determined that value would be appreciated .