gap filled, no more t/a excuse to hold it back, page-7

1. Alcoa's landfill

"The Third Party has access to a landfill owned by Alcoa containing 160,000 tonnes of aluminium waste, from which an estimated 16,000 tonnes of aluminium is expected to be recoverable. The Third Party has acquired from Alcoa the rights to 100% of the proceeds of materials recoverable from the landfill."

landfill has nothing to do with Alcoa anymore.

2. US finance
does it really worry anyone?
if we secure 100% debt finance that's great for existing holders, but even we use equity finance does it change anything? does it mean our aluminium recycling business won't be profitable?

3. AL80
They said very clearly in latest announcement that customs paperwork is finalized, and first shipment schedule end of February, and once they have the income from al80 and there's no doubt that the estimated profit will be seen.

I also did some calculation using $50/t for alox

plant throughput p.a. 60,000t
from land fill 35,000tpa
from customers 24,000tpa

so I use June2010 quarterly as reference for the customers part (6668t in that quarter, x4 is ~24,000tpa)
therefore profit to MHM is about $0.4m/q approximately
alox from customer part 8400t x $50 = $0.336m (only receive 60% of half of that amount)

Next, the landfill part.
35000tpa using median %
5250t of aluminium @ $2000/t = $10.5m
12250t of alox @ $50/t = $0.6125m
17500t of salt @ $200/t =$3.5m
and needs to deduct the operation cost for the landfill part
so using the June2010's figure that opex is ~$120/t
then $10.5m+$0.6125m+%3.5m - 35,000t x $120/t = $10.4125
60% of this is $6.2475m

so total = $0.4m x 4 + $0.336m + $6.2475m = $8.1835m
(note: aluminum price should be higher than $2000/t)
remember the above is using $50/t alox, imagine when they're able to sell at $200+/t later