The results out this evening in my view are again a continuation...

The results out this evening in my view are again a continuation of the disappointment of the past.

Bottom line for me is without product to process there is no business , and in this update there is little discussion about what will be the MHM business post these closures.

In the next 6 months we will see Simms cease sending product to process in June 2014 and then Yennora Income cease in December 2014 .

Expenses arguably will stay fixed during that period of just over 12 months .

The assets must devalue as they are a US property that could not previously be sold for more than 10 years , plant that is specific to this business , tax losses only valuable to this business .

You would at best expect the next 12 months income to be stable so at best you would expect cash flow to be the same cash flow result as the last 6 months , ie negative $2 million cash burn .

Problem here is they only have $1 million in cash left at Dec 31 . It is probably less than $ 800 k by now and on that timetable will be Nil by June 30 2014 and bankrupt.

Taking up tax losses as a profit to reduce the $4 million loss to $2 million and capitalizing expenses of property maintenance is window dressing what is really a business a very long way off returning cash .

The fact they have not stated they are looking at alternative investments is very concerning and really should see MHM fall further to a shell company valuation ie: under 1c .