aluminium plant commissioning and silica drill, page-54

Hi Pencilin
I'll assume NMP potential adds about $10-12m to the NET profit, because the basic oxide is worth around $200 per tonne and that multiplied by 20k tonnes equals $4m.
For a nice round number lets say that Moolap will make $20m, made up of $8.6m from salt slag + NMP value adding.

There will be admin expenses and ongoing development costs in the U.S, but I'm going to ignore them and also ignore depreciation, because I think that with the company in a growth phase, they won't be heavily scrutinised.

So after removing tax at approximately 30%, Moolap should make around $6m from salt slag alone and $14m if my NMP estimates are close and the NMP treatment is not too expensive.

Silica at $700 per tonne * 80,000 brings in $56m. If digging and transport costs are $100, which would be high there's $600 profit per tonne * 80k, equaling $48m. Remove 30% for tax and that leaves $33.6m

Salt slag only + silica
$6m + $33.6m = $39.6m
$39.6m/146 million share, which is the fully diluted number, is a little over 27c per share.

Salt slag and NMP + silica
$14m + $33.6 = $47.6m
$47.6m/146 million share, is a little over 32c per share.

Treating them as non growth but long term income producing assets would mean that a P/E of 10 would be fair, I think, but in this market who knows.

That would give a share price of $2.70 to $3.20

This doesn't allow for MHM acquiring the full rights to Australian salt slag profits, but since I don't know how that will be arranged, I'll leave it out.

NMP and Silica revenue and profit estimates are speculative, but not too optimistic??
I don't know what the set up costs for silica mining are.

Also this is very simple, with no discounting or detailed cost analysis applied, but an SP value of over $2 for Australian operations would have to be pretty fair.