VYS - Vysarn Limited

[basilio]

Good to see the jump over the past 3 weeks.

I thought MHM was incredibly oversold at 15c. I believe there may be some smart money that is pretty confident the technical solutions will work for the plant and has bought in.

Three years ago the brokers were talking $3-4 a share based on successful development of the USA plants. At 30c it think this could be still excellent value if the plant can do what it is supposed to.

 

[basilio]

MHM continues to rise. Really glad I didn't bail out in December.

My guess is that the solutions to the technical problems with the plant are looking promising. This will absolutely fly IMO if/when there is an announcement that they are successfully recycling the aluminum slag and can confidently continue with the USA plant.

 

[basilio]

Finally some excellent news from MHM.

They have a new 12 month deal with Alcoa on better terms and conditions. The AL80 is now classified as non hazardous and they are actually selling it. The new filter press from Belgium has now been confirmed and will be supplied and fitted under budget in 6-8 weeks.

A few more weeks of production and installation of the new press and MHM should be substantially revalued


http://newsstore.fairfax.com.au/app...get_prices=Get+prices+&+charts&code=mhm&f=pdf

Disclosure I hold

 

[Paavfc]

Being dragged down with the rest of the market.
Should soon see a re rating as production increases and becomes profitable.
Bring on the USA Expansion

 

[basilio]

Being dragged down with the rest of the market.
Should soon see a re rating as production increases and becomes profitable.
Bring on the USA Expansion

Really hope your right about this one. Disappointing that there isn't any support given the earlier announcements (which I thought were very encouraging) . Lets hope there isn't any hiccup in the situation which might be informing the last week of selling.

 

[basilio]

I think we should be hearing good news very imminently from MHM. On my calculations the new filter press should be arriving from O/S and within a few weeks we should be seeing a substantially more productive (and safer) processing of the aluminum slag.

I note the SP has jumped from 11.5 to 14.5 in the past two days.

 

[Assasin]

Love your passion Basilio,

I live relatively close to Alreco and have kept a pretty close watch on all 3 sites at Moolap and are very encouraged with current progress.
Really believe results to come from September quarter will be very significant and are happy to continue buying at these levels.(11-12 cents)

Cheers

 

[basilio]

Love your passion Basilio,

I live relatively close to Alreco and have kept a pretty close watch on all 3 sites at Moolap and are very encouraged with current progress.
Really believe results to come from September quarter will be very significant and are happy to continue buying at these levels.(11-12 cents)

Cheers

Certainly some passion Assasin but as you point out the plant at Moolap is progressing very well. I think MHM is a great buy at current levels. If/when they demonstrate the effectiveness and profitability of their salt slag recovery process they should do very, very well from the current SP. Trouble is I jumped in at the last 2 pieces of good news and have watched the SP still fall.

I think we should have some updates on the new machinery that was to arrive in May and clean up/speed up the salt slag processing.

 

[basilio]

Good jump on MHM today. Up 2c to 12cents.

I think there has to be some announcement soon on how the new plant is being bedded down (it was supposed to arrive in mid May) . There are very few sellers at the moment and as far as I can see the last few weeks has seen a shakeout of investors who have given up on the company while a core of "believers" are accumulating at 10-11cent levels.

 

[basilio]

Another sharp jump on MHM. Up 25% to 17.5c. Any news around the corner?

 

[skc]

Another sharp jump on MHM. Up 25% to 17.5c. Any news around the corner?

100k shares traded worth $16k. I wouldn't read much into it...

 

[basilio]

It appears to have been building all week. Up until the end of June there were a number of sellers who kept pushing the price down to 10c. All that stock is gone and it seems that those who believe MHM will turn the corner are now chasing and there are relatively few investors who want to get out until they hear how the new press starts to work at Moolang.

 

[skc]

It appears to have been building all week. Up until the end of June there were a number of sellers who kept pushing the price down to 10c. All that stock is gone and it seems that those who believe MHM will turn the corner are now chasing and there are relatively few investors who want to get out until they hear how the new press starts to work at Moolang.

Volume for the week = 250k, or ~$25-30k in value.

Again, I don't know you should read too much into it.

 

[basilio]

I take your point. Realistically nothing significant will happen until there is some significant good news.

 

[basilio]

MHM released their Quarterly production report.

A very sparse document but they appear to have turned the tide on their costs and the new Dieme Filter Press has arrived and is being assembled. It will begin operations at the end of August.

It seems the US aluminum companies are still very interested in the project and when the Moolap plant proves effectively capable of dealing with the aluminum slag the business case for the US project will be developed. That really should be the end of the year.

http://www.mhmmetals.com/_content/documents/947.pdf

 

[basilio]

Bit of a surprise announcement today on the immediate replacement of their CEO.

SP dropped sharply. Probably scared a few punters because it seemed to come from left field.

I decided to ring the Chairman Iain Kirkwood to have a chat re the change of CEO.

Short story is that the new CEO appears to be a bigger picture person than the more engineering minded Robert Macalister. MHM believe this is the guy to help them expand the business effectively.

The new filter press is still being settled in. Hopefully the next few months will see the nuts and bolts of the Moolap operation sorted out in anticipation of establishing the American plant.

$MHM today announced the resignation of Mr Robert McAlister as Chief Executive Officer. Mr Matthew Keen has been appointed as his replacement with immediate effect.

Mr Keen, who holds an Electrical and Electronic Engineering degree, has 15 years’ experience in both engineering and finance and in a variety of senior roles. He has worked in complex engineering, mining, construction and infrastructure projects both locally and internationally. Most recently he was the Managing Director of Queen Street Capital, a private corporate advisory business where he gained enormous experience across a range of projects and professional networks.

"We are fortunate to have attracted a CEO of Matt’s calibre who has accepted the challenge to lead the business out of its current stabilisation and re-structuring phase. More particularly he is well qualified to develop and execute its growth strategies. The company will benefit from his technical experience and extensive professional network”.

I think today was one of the last opportunities to pick up MHM at sub 10c prices. I think there is far more upside than downside on this share with the current management and development of their aluminum slag processing technology.

 

[basilio]

MHM has been a huge disappointment since the closure of the aluminum plant in Yennora cut off it's supply of slag for reprocessing. As a result the SP has slumped to .012-016c. They are in the process of looking for other options to provide supply for their aluminum recovery operations either locally or overseas.

I suspect there may be a positive announcement in the near future. The sp has jumped from .013 to .017 in the past few days with a few buyers showing their hand. IMO I believe it is currently underpriced purely on the cash value of the present operations. Lets see..

 

[skc]

MHM has been a huge disappointment since the closure of the aluminum plant in Yennora cut off it's supply of slag for reprocessing. As a result the SP has slumped to .012-016c. They are in the process of looking for other options to provide supply for their aluminum recovery operations either locally or overseas.

$0.012, not 0.12c.

I suspect there may be a positive announcement in the near future. The sp has jumped from .013 to .017 in the past few days with a few buyers showing their hand. IMO I believe it is currently underpriced purely on the cash value of the present operations. Lets see..

It jumped on 250k shares, or ~$4k worth. Don't know if you should make anything out of that.

 

[basilio]

Oops! My error on the figures.

I agree that the amounts are small.I don't think there has been any significant pushing of the SP for months so this is interesting. As I said I think that at the present price MHM is undervalued.

 

[basilio]

Encouraging to see further strength in MHM. SP now up to .022 with more active buyers and few sellers. I suspect (hope) there are some positive announcements around the corner.

If in fact they can find a source of slag or a credible alternative project and keep Moolap operational this will be a good little earner. It should certainly see a rapid re-rating of the SP.