The target price of $3 is based on:1 OZ plant and two U.S only....

The target price of $3 is based on:

1 OZ plant and two U.S only. No value for silica or other assets, no value for possible additional plants

$3 per share = market cap of about $360m.

Projected ebit from the three plants was $80-90m p.a. So $3 would be a multiple of around 4x. 10-15x would be expected once the plants are commissioned. That would mean an SP of $7.50 to $11

Additional plants would massively add to the upside of the stock.

There are many possible permutations to the upside. On the downside I can only see commissioning delays, which will put off but not halt forever, the increase in revenue. Or a competitor produces a superior technology, but they would be starting from a long way behind.

The researcher RB Milestone says:


"The report will also be distributed to RB Milestones network database, presently totaling around 900 Institutional and High Net Worth clients."

That they only admit a select few companies into their coverage universe and all are trading well above the price they were at when coverage commenced.

This is a marketing coup IMO. If the majority of their clients weren't advised about MHM prior to the release of the report, then, as it was early morning in the U.S when it was released, they won't have read it yet.

So, "900 Institutional and High Net Worth clients" are going to be looking at that report between now and Monday, along with many thousands of Australian investors.

It looks very good for MHM in the short and long term.