Sorry onlycuriouas, for got to reply properly,
Here are a few old links for you:
http://www.*.com.au/genera/files/companies/mhmsydneypresentation10feb2010sml.pdf
http://www.mhmmetals.com/operations.asp
I remember reading this some time ago and rechecked it recently, its from another stock forum, Date: 13th-November-2010
I'll tell you... they have the global rights to a processing technology that turns an environmental hazard for the aluminium recycling industry and turns it into a huge profit.
To calculate earnings use the figure of $430k / tonne of aluminium salt slag processed (derived from recent announcements)
Currently processing 33ktpa in Australia, so earnings are $14m (although MHM only get 60% of that at the moment).
Have just announced a feasibility study to potentially begin processing 90+ktpa for a US company and explore processing for the rest of the US market (1mtpa produced), plus processing existing landfill sites (the current industry solution)
Are in very advanced discussions with Alcoa to become their global partner to process all their waste. Alcoa produce 400ktpa of waste in the US alone.
Market cap is around $180m as of today.
Quite likely that within two years they will be processing 500ktpa = earnings (not revenue) of $215mpa, potentially higher if the company keeps upside in increase of Aluminium price.
This is earnings in perpetuity, so assume a PE of 10 (could be 15-20 with the further upside in global processing) gives a market cap of $2.15b
Oh, plus they have the rights to a technology in development that can increase their revenue by 5 fold.
Oh, plus they have a 500koz gold project in the feasibility stage.
Oh, plus they have a 20 year life silicon project and are in negotiations with potential offtake partners.
Expected upcoming news (pre xmas 2010):
- Council approval for evaporative ponds that will allow the Australian plan to become fully commissioned (a formality)
- Silica and Gold project update
- Visit from US Alcoa execs to view fully operational plant
- Alcoa negotiations update
- Update on current management trip to the USA
- Further detail on US expansion plans
http://www.aussiestockforums.com/forums/showthread.php?t=8906&page=3&p=586521&viewfull=1#post586521
Again, these are only links I have found on the internet, please do your own research.
Cheers
(20min delay)