mhm for dummies... for newbies.

General Summary for New Investors- hope helps...

Many always seem to request a summary to investigate further. I recommend we add to this summary as needed on a weekly basis. I would prefer to simply direct them to this thread, as opposed to writing out a few dozen times.

Thumbs Up if of value. Let Newbies have a look if of interest to them.

MHM is at a HUGE turning point in their expansion and worth looking into for your future investment. Their primary income is from ALU Slag recycling. They generate approx 6 million in income now from Plant 1 during upgrade. 18 mil in revenue after Upgrade expected to complete in Mid Feb 2011.

ALU Coys normally needs to pay to offload their Slag in landfill. Now they benefit by paying us less to reprocess and we retain the rights to the commodities extracted.

After Plant 1 Upgrade we have a conservative estimate of making 60,000t pa x $300 = 18 M pa. Of which they need to pay 40% royalties.

There is upside in Plant 1 income due to gaining more capacity IMO. Plus negoitating more than $300 pt processing fee. PLUS extraction of commodities and selling them could be more upside.

Conservative estimate on Plant 1 income is 8.6M pa profit, they achieve many millions in revenue already. Completion of upgrade very soon is a 'Give me' IMO.

Value SP= 1.2 IMO on conservative capacity income.

What needs to happen for upside;

1) Council approval of Ponds to offload water and complete Upgrade.

2) Reach full capacity PLUS for Plant 1 of 5000 ton pm processing. For 18 Mil pa revenue.

3) Alcoa indicated as worldwide JV partner for approx 28 ALU Plants. On average each ALU Plant is worth more than Aussie Plant 1. So over 10x upside in MT income from Alcoa deal alone. An ANN in this regard will BLAST the SP off into space IMO. Every indication of Alcoa deal worldwide has been given. Alcoa deal exists in Aussie. Simms makes other Aussie contract.

4) SPL pilot project starting this month. Upside is 10s of mil pa. Yet no one prices into calc's IMO.

5) SSC Update on FE Study- Director relocated to setup in US for US expansion. Hits the ground running with JV deals with Alcoa and SSC to come.

6) Other ALU Coys will be interested in reprocessing Slag to save money. Plus look good as a recycler to the public and their governments around the world.

7) NMP to extract the commodites from Slag is in advanced stages of development. Not counted in valuations yet huge upside.

8) Other projects with icing on cake upside are Gold mining and Silica. Commercial lawyer employed for some sort of Silica transaction. Probable to presume upside in Silica for some cashflow or sell off.

9) Longer term targets are expansion outside US being EU next. Asia area not yet considered for Slag recycling. Upside is 'dream worthy'- life changing potential.

Basically SP currently priced ONLY at income value for Plant 1, which already makes a good income. With no futher upside factored in. Therefore downside risk is minimal IMO. Plus upside is a HUGE multi bagger.

LTers pls add whatever you feel of value to Newbies.

Cheers JAY