ASX Release – 30 January 2012 CORPORATE • $5.9 m cash on hand • All resolutions unanimously approved at Annual General Meeting • New York, London and south east Asia roadshows to increase institutional investor awareness and on-market support AUSTRALIAN ALUMINIUM OPERATIONS UPDATE • Gross Quarterly Cash Receipts of $1,000,151 • Gross Quarterly Operating Cash Surplus of $440,289 with Trade Receivables of $941,644 • 4,074 tonnes of salt slag and non-salt slag, and 915 tonnes of dross received during the quarter • 24-hour operations to re-commence in January • Landfill processing due to commence Q2 2012 • AL80 customs paperwork finalised, Impex has advised first shipment scheduled to depart by the end of February US ALUMINIUM OPERATIONS UPDATE • Three US supply contracts signed, with additional contract negotiations ongoing • US site acquisition in Russellville Kentucky with settlement scheduled for 3 Feb • $835,000 purchase price to be funded from cash reserves • 115-acre site with ample room for growth. Existing buildings expected to decrease project costs and timeframes • Preliminary approval for over US$1 million from government grants and incentives • Anticipated plant capacity 250,000 tonnes pa • Plant design and confirmation of capital cost underway, conservative initial budgetary estimate of US$25 million • Targeted EBITDA from first US plant US$25 million pa when operating at full capacity • Project finance favouring non-dilutionary mechanisms SILICA PROJECT UPDATE • Continued progress on supply contracts to underwrite Tasmanian silicon smelter • Analysis of additional silica resources with the potential to fast-track production • Engagement with corporate advisors regarding spin-off of the silica division • Any further silica exploration work to be sub-contracted EXPLORATION UPDATE • All exploration activity discontinued, geological team wound-down • Company savings of $300,000 pa from salary payments alone • Seeking to divest exploration landholdings to third parties
MHM Price at posting:
82.0¢ Sentiment: LT Buy Disclosure: Held
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