March2012 top40

Further Geelong Plant Performance Information

ASX Release – 2 April 2012


AUSTRALIAN SALT CAKE PROCESSING OPERATIONS

Following numerous shareholder inquiries relating to the  MHM Metals Limited
(ASX:MHM) update lodged on Friday, the company reaffirms that:

1. Alreco’s (MHM subsidiary) Geelong facility is successfully processing all
salt cake delivered to site and stockpiles are reducing. The technology is
working and daily throughputs continue to increase.

2. Processing challenges caused by  the partly processed material
generating larger volumes of gas than expected  will be addressed
through the implementation of production  refinements. The first stage
of this installation has already been completed and is in production
today. A report on its effectiveness of stage one will be forwarded to the
ASX in the near future.  During this process the plant will continue to
run as normal, processing all material delivered to site and reducing
current stockpiles of partly processed salt cake. It is expected that these
changes will not only allow increased production at the Geelong Plant
but will also result in reduced capital and operating costs for the US
Plant.

3. As  previously advised, when reprocessing the stockpile of partly
processed salt cake is completed, Alreco will commence processing
Alcoa’s 160,000 tonne salt cake landfill. When landfill processing
commences Alreco’s earnings are expected to increase to  the forecast
$8 million EBITDA  per  annum. Geelong plant EBITDA forecast remains
unchanged.

4. It is important that Shareholders remain mindful of the magnitude of MHM’s achievements to date.
The profitable production of AL80, MHM’s  aluminium oxide product, is a world-first and will have
significant implications for the global aluminium industry. Further, MHM’s salt cake processing
technology will revolutionise the US aluminium industry and bring change to long-standing practices
of landfilling salt cake.  This change will be driven by MHM, not increased regulation.

Company Update

ASX Release – 30 March 2012


• First shipment of AL80 has departed Geelong
• Closed-loop processing continuing, although throughput diminished
due to intricacies of re-treating partly-processed material
• Planned alterations to areas of the circuit to increase throughput,
reduce staffing and greatly simplify process
• Plant will continue operating during planned process changes
• Engineering and environmental permitting progressing very well in the
United States
• Rail spur final design and costing expected imminently
• Management soon to confirm capital cost and drawdown schedule
• Preliminary site works commenced
• US and UK roadshow completed, business case positively received


AUSTRALIAN ALUMINIUM OPERATIONS UPDATE


MHM Metals Limited (ASX:MHM) confirms the first shipment of AL80 has left
Alreco’s Geelong facility, just two weeks after signing a Letter of Intent with
Australia Bandfield Group. AL80 is an aluminium oxide product that results
from the closed-loop salt cake processing technology for which MHM has
exclusive, perpetual global rights.

Established in 1994, Bandfield has exposure to a range of businesses including
ship broking, export/sales of mineral and agricultural products and advisory
services in mining, port infrastructure and investment. Its business includes
advice and evaluation for Australian or Asian companies seeking joint venture
investments and shipping services for Australian companies for Asian markets.

Closed-loop processing continues in Geelong, although Alreco has struggled to reach full capacity due to
processing issues presented by re-processing the partly treated and stockpiled salt cake. The partly
processed material has been generating larger volumes of gases than anticipated, resulting in the need to
blend the stockpile material with the regular salt cake feedstock. Alreco had originally expected that the
partly processed material could be processed without blending, however due to the difficulties the material is
being blended on a ratio of one tonne for every three tonnes of unprocessed salt cake.

Whilst the stockpile of partly-processed material is being reduced, management has designed small changes
to the circuit to enable the plant to increase throughput, reduce staffing levels and greatly simplify the
process. The design will be tested over the next week, with results provided to the ASX. The plant will
continue operating during this period.


US ALUMINIUM OPERATIONS UPDATE


Preparations for building the US plant continue with engineering and environmental permitting activities well
underway. Rail spur design and costing is expected imminently, with the construction of the rail spur a high
priority to facilitate transfer of plant and equipment to the Russellville, Kentucky site.

Management is finalising final plant capital cost including independently verifying the costs, drawdowns and
timeframes for completion. This information will be released to the market when available.

Preliminary site works have commenced and are ongoing.
Assessment of project-financing options is underway and will be finalised when the plant capital cost and
drawdown schedule are confirmed. Management is confident that a number of options will be available. As
always, management wishes to minimise any shareholder dilution to maximise earnings per share and share
price.

A preliminary US and UK roadshow has been completed with positive feedback in every instance. The
purpose of the roadshow was to introduce potential new investors to MHM and generate more support for the
share price during in any market weakness or low news flow.

AL80 Update

ASX Release – 14 March 2012

• Supply contract with Impex Minerals Pty Ltd cancelled due to non-performance

•  Letter of Intent signed with Australia Bandfield Group for the supply of AL80 produced in Australia. 

MHM Metals Limited (ASX:MHM) has cancelled an exclusive supply 

contract with Impex Minerals Pty Ltd  for the offtake of AL80, 

MHM’s aluminium oxide product that is produced from salt cake 

recycling operations.

The contract has been cancelled following repeated nonperformance by 

Impex of key conditions precedent to the contract 

and repeated failure to deliver on timeframes.  On 23 February 

MHM announced that the first anticipated shipment date for AL80 

would be 5 March 2012.  This date was provided following written 

and verbal assurance by Impex that shipping would commence on 

this date.  Due to non-compliance by Impex, MHM has now cancelled 

the contract with Impex.

MHM has immediately proceeded with an alternative buyer of MHM’s 

AL80 product. MHM has signed a Letter of Intent with Australia Bandfield Group 

for the supply of all AL80 produced in Australia. 

Established in 1994, Bandfield has  exposure to  a range of 

businesses including ship broking, export and sales of mineral 

and agricultural products and advisory services in mining, port 

infrastructure and investment. The scope of  its business also 

includes advice and evaluation for Australian or Asian companies 

seeking joint venture  investments and providing shipping 

solutions for Australian companies seeking to reach Asian 

markets.

Preparations for the first shipment have already begun and 

Bandfield has advised that it will be delivering shipping 

containers to site within 10 days. 

The delay in shipment of AL80 is presently not impacting ongoing 

operations at MHM’s Geelong salt cake recycling facility.