mhm agm thoughts - a ttc view, page-11

Ok, back in the "office".... :-)

Here is part 2. I'll start with a few pics.

Here is the room where the AGM was held. We have only just started to file in. I have cut out the shareholders faces.

Going from left to right, Simon heads up the Silica Division, The bigger guy with less hair on top is Frank, then Ben and Neil. Basil is at the front of the room.



This next shot is the view from the room. This is Macquarie Harbour. Note you can see one of the Silica deposits in the distance (Circled in Red).



This next one is the Sea Plane on the Harbour with some of the HC guys on board.... see Magix's video....



This last one is taken from the Cruise boat as we go past some of the Silica Outcrop... (middle of shot).



I'll try to answer some of the questions asked.

IP/Tech/NMP/SPL/Takeover/Dividends

We asked the question about the NMP and SPL tech. Basically MHM has first right of refusal on the tech. The technology provider is basically Frank. This is a similar setup to the Salt Slag arrangement. I have no problem with the way this is arranged. This all came up with Frank when we were discussing if there was an issue around a hostile takeover. Frank pointed out that with him being a 20% shareholder, and takeover would be difficult without his approval as he was a major shareholder, and the technology provider.

He also mentioned that he didn't see any need for further capital raisings, and dilution was not favoured, as he did not want to dilute shareholders (him included). As he was a 20% shareholder, he was also interested in dividends, but this was a balance against growth and exploration budgets.

REE

I was talking to Frank about how I believed MHM needed to "market" their Silica deposits better to the market. He pointed out that the Silica Market was not open, and offtakes were needed. I made a wise crack about REE companies in the same boat, and just because offtakes were key, you should be pro-active in informing investors. Frank then made reference to how people comment he has pegged the whole periodic table, and that included REE on the MHM tenements (not discussed in detail).

Copper/Gold/Tin/Nickel

Frank was super positive about the MHM tenements along from Mt Lydell. He basically said that people thought the mineralisation stopped after Mt Lydell, but the key was the age of the rocks (which are the same age as on the MHM tenements). He went on to talk/question how Macquarie Harbour was actually formed. The short of it is that Frank is super positive about the MHM tenements including Copper and Nickel, and has employed a Geo with Copper experience to follow this up further.

The North East tenements are less exciting, and have been given up, and a major focus has been given to the West Coast Tenements (Mt Thomas - along from Mt Lydell).

NMP

As I have previously stated, the NMP tech has a multiplier effect on earning. Turning what is effectively waste (and a by-product of the Salt Slag tech) into product worth over $1,000 a tonne (it's over 50% Al which is about $2,600 a tonne at the moment) is a HUGE money maker. The NMP tech could increase the profit from the VIC plant by 3 or 4 fold IMHO.

SPL

This is also a big one, but commercial timeframe is after 2011. Australia produces 60-80K tonnes a year. The US produces 500-600K a year. Currently it is being stored, and the US is VERY keen to see a solution. Expect government $$$$ to be thrown at this.

Corporate

The $12m raised is enough to see MHM though their next growth stage. Debt funding for the new plants seems to be the focus. Money also to come from the US government and SSC also want to partner.

Frank has been around for a while, and is very experienced. I came away very impressed. When you read the MHM blurb on Frank.... it all fits together.... (cut/paste below).

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Frank Rogers Managing Director
Mr. Rogers has been involved in the management of mining companies, mineral and chemical process operations, material handling projects and waste processing industries for 38 years. For most of that time Mr. Rogers has operated as CEO of both public and private companies and as a consequence has developed skills in management, financial control and project development and implementation. Mr. Rogers has the experience to offer a mature and innovative approach to problem solving both technically and administratively.

Mr. Rogers has been involved in the exploration, development and/or operation of the following projects;

The Youanmi Mine
The Speewah Fluorite Deposit
The Cadjebut Lead-Zinc Mine
The Sandstone-Hancocks Gold Mine
The Gidgee Gold Mine
Delineation of Mineral Sands in the Eucla Basin
Mr. Rogers also has extensive experience in mechanical and process design and implementation over a broad range of industries. The provision of new and innovative solutions to processing and operational problems led to the design, construction and operation of;

The first Carbon-In-Pulp gold plant in Australia
The first methanol gold desorption plant
New processes for the aluminium industry