The best part of the announcement is that the plant costs $25 million to build and will return $25 million EBITDA each year. A plant will have a payback period of a year !!
So in the future when expansion occurs you can build another plant in another part of the world and expect a similar scenario of a payback period in around a year.
Compare this to a mining company and when the resource runs out you need to go back to explore again or pay someone the higher costs after they have found a suitable resource.
With MHM each plant can perpetually draw an income for as long as aluminium is used as a material on this planet.
MHM Price at posting:
87.0¢ Sentiment: LT Buy Disclosure: Held
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