shaws value 36c

Recommendation: We believe IMH is on track to achieve its stated targets regarding commercialisation of

Phoslock. As stated in the company's 2002 annual report, treatment of Lake Dianchi alone is estimated to require

100,000 tonnes for which IMH will receive A$90 per tonne (plus its share of the JV profits). This should result in

revenue of $9M for this contract, with minimal expenses incurred. We expect further contracts in China at a later

stage resulting in additional royalties. The current market cap. of IMH is approx $7.5M (below the level of its

expected royalty payments for only one contract). We have valued the company on a DCF basis at $0.36 (based

on minimum contractual agreements). Refer SHAW report dated 23/8/02 for further details. Retain Speculative Buy

on IMH.


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