Ann: Proposed issue of securities - MMI, page-15

A rough calculation laid out.

29M Cash on Hand in June

2.5M in Finance costs over first 5 months of the half.
2.5M in Admin costs over first 5 months of the half.
At August freight rates, they're losing about 13/14 per tonne at Site level.

They had a 2.3MT offtake to fulfill, plus, they have an extra 1M deal. So 3.3MT for the year.
0 in wet season quarter, 630k in June, so around 2.67MT left to deliver.

Assume faster deliveries in end months 1.6MT and 1.07MT in first 3.

So take 2.1MT to December 1.

Cash in Hand 29M + (8.4M issued today) = 37.4MT
- 2.5M Admin or Corp Costs
- 2.5M Finance Costs
- 13*2.1 = -29.4M - Site Margin
Cash in Hand on December - $3M

This is assuming freight rates don't go even higher, there's been no retraction yet as per last week, so those site margins are deeper and deeper into the red. Australian Bauxite prices remain flat even with the Guinea noise.



It's somewhat comforting to see Board thinks sometime October, but it's very crucial it does. It's life or death for MMI.

If they can get it in October Mid, then that's around 10M extra cash, which would be about enough to get them to next season...

I'm not sure MMI will be able to cap raise again.. and going into the wet season, they won't have any meaningful revenues after December until May 2022. MMI needs to finish 2021 with 10M + in hand to have a fighting chance.

Don't forget MMI has 35M in debt at a disgusting 10% per annum interest. 1st thing board needs to do is, find some less predatory lending.

To survive Wet season to April, they need:
- 2M finance costs
- 2M admin costs
- 3M site startup costs they usually incur at the start of the season

~7M in cash, minimum..

This is all assuming the government doesn't force them to handover 9M in rehab provisions as safety, due to the companies horrendous financial position.