That does seem to be forgotten a lot of the time. Although the...

That does seem to be forgotten a lot of the time. Although the margins seem high, so I don't think the amount will equate to 10% of EBIT.

If you check the figures from the last four cashflow reports, you can see that when the output was higher, i.e. when the plant was not closed by Alcoa or being affected by upgrades, the margins are well over 50%.

BTW, if you add up the four quarter profits, you can see that even though they had a one off payment of about $545k in one quarter, an Alcoa induced stoppage in another and the upgrade to NMP in the last, they actually achieved the target of $230k per month, which equals $2.76m p.a.

There is a clear correlation between greater output and higher margins.

April 2010 Quarterly cashflow - http://www.mhmmetals.com/_content/documents/685.pdf
Gross receipts $1.636m
Operating cash surplus - $.923m + $.195m unbilled

July 2010 Quarterly cashflow http://www.mhmmetals.com/_content/documents/689.pdf
Gross receipts - $1.268m
Operating Cash surplus - $.379m

Operations affected by Alcoa shutdown


October 2010 Quarterly Cashflow - http://www.mhmmetals.com/_content/documents/718.pdf
Gross receipts - $1.677m
Operating Cash surplus - $1.015m

Jan 2011 Quarterly cashflow - http://www.mhmmetals.com/_content/documents/732.pdf
Gross receipts - $838k
Operating cash surplus - $238k

Operations affected by plant modifications to allow NMP technology implementation in anticipation of NMP contracts.

Cash at end of quarter - $11.7m.