FirsovaI understand that MHM does not have the relationships...

Firsova

I understand that MHM does not have the relationships with the Chinese government, that is why I am suggesting that MHM should raise some equity to fund some new additions to the team, which could well include individuals with skills not only in Mandarin, but also have the necessary contacts in China.

MHM has a very unreliable history, but that is in part a result of the previous management's tendency to make promises that it could not keep. With a new management team, we are already seeing improvements in the consistency of the product. I feel the new management team is very open about the company's limitations. That is a major strength IMO and it goes a long way to restoring the company's credibility.

In the worst case scenario the property in the USA could be sold in a relatively short period, albeit at a discount.

The key issue that you raise is that the company has a stockpile of material that has been paid for but which hasn't been processed yet. That's a real issue and not one which is likely to be solved without a significant injection of capital.

Which brings me back to the prospect of a capital raising. There really is no other option is there? The share price has been hovering above 2 cents for the last month or two. At these prices, it should be possible to raise $1 million. Some institutional investors may also be willing to put in some additional money.

MHM will have significant IP, once management realises that the best course of action is to settle the dispute with the former managers. Yes they may have ripped off the company, but that's the least of the company's trouble now. Right now, after Alcoa's decision to shut down MHM's lifeline, the priority is to obtain ownership of the IP and then using that asset to lure in new capital and contacts.

You speak of receivers, but that is overly pessimistic. MHM has been dealt a blow, but I don't see a need to throw in the towel just yet. There are countless company's on the ASX that do not have an income stream and rely on capital injections from investors. The key thing about MHM is that it doesn't have any debt, and that means the loss of income is not as disastrous as it could have been.

Imagine if MHM was leveraged to the hilt, with hundreds of thousands of dollars of debt to pay each year. But that is not the case. MHM is debt free and so in terms of risk management I believe that offsets the loss of income.

MHM is down, but far from out.