ann: alox offtake agreement, page-25

I don't have time right now to read if anyone has as yet set the record straight regarding the NMP income.
If anyone else has posted similar to the following then apologies.

The NMP income was included in the $8.6 million income forecast. Here are the facts.

From MHM announcement 21 Dec 09, regarding MHM's contract with Alcoa:

"Alcoa Rolled Products Pty Ltd (Alcoa) has now entered into a three-year Salt Slag processing agreement for between 33,000 and 39,000 tonnes of material. The contract provides for a payment of $300 per tonne processed, with Alcoa retaining ownership of the recovered aluminium and salt but relinquishing ownership of the aluminium oxide."

From MHM announcement on 24 Dec 09, regarding MHM's deal with Sims:

"The processing is for an initial period of 12 months, though the parties anticipate that the relationship will continue beyond this term. At the request of Sims, the specific details of the processing agreement are to remain Commercial-in-Confidence."

From "Aluminium Project Background", page 2 of announcement on 15 Jan 10, regarding MHM's profit forecast:

"During the plant upgrade period, the business is expected to earn pre-tax profits (EBITDA) of $230,000 per month for Alreco. Once the plant upgrade has completed, the business is expected to earn pre-tax profits of $8,600,000 per annum for Alreco. These estimates are based on projected income from supply contracts that have been finalised and additional income projections and operating expenses that have been verified by the Independent Technical Experts to the transaction, The Carnot Group."

and

"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. In addition, the Third Party has negotiated a three-year tolling contract with Alcoa for the processing of Aluminium Salt Slag."

From these quotes, it is clear that there are three components to MHM's income from Geelong:
1. Alcoa - the contract included the return to Alcoa of the aluminium and salt; the NMP is MHM's to sell (ann 21 Dec 09) and, although not contracted until today's announcement, "additional income projections" were included in the $8.6 mill forecast in 15 Jan 10 announcement.
2. The landfill - all the product is MHMs to sell, and as for (1), all income from these sources is included in the $8.6 mill forecast.
3. Sims - terms of the contract remain confidential, so no conclusion can be drawn.

I TRUST THE ABOVE CLARIFIES THE SITUATION - THE NMP INCOME WAS INCLUDED IN THE $8.6 MILLION INCOME FORECAST.