News
30 Apr 2013
Quarterly Activities Report

ASX Release - 30 April 2013

March Quarter Financial Performance

Alreco's total cash receipts for the quarter were $1,535,000.

There was a net decrease of cash held for the quarter of ($546,000):

Net Operating Cash Flow      $116,000
Net Investing Cash Flow      ($650,000)
Net Financing Cash Flow      ($ 12,000)

Cash on hand at the end of March 2013 was $3.61 million.

Projected cash income is expected to be $1.68 million for the 4thquarter to the end of June 2013. Outgoings are anticipated to be $2.0 million, including $O.4m capex.

Moolap Plant

Quarter Highlights:

• Processing of salt slag has been stabilised.

• A consistent NMP-AL80 end product is being produced.

• Improved processing and reduced breakdowns resulting in a >10% processing cost reduction.

• NMP-AL80 was reclassified as non-dangerous industrial waste.

• Repeat sales of NMP-AL80 were achieved during March.

• A 12 month agreement was signed direct with Alcoa underpinning the Moolap plant processing cost.

NMP-AL80

Sales of NMP-AL80 are being realised as the improved processing is resulting in a more consistent end product. The stabilised product along with its reclassification as a non-dangerous industrial waste has been the major contributing factor in repeat orders being received during March. Orders received were in excess of 500 tonne. While that quantity is below the Moolap plant output it is a very positive sign that NMP-AL80 sales are heading in the right direction.

Ongoing Testing:

• Alcoa in conjunction with MHM Metals engaged CSIRO to conduct tests on mixing NMP-AL80 with green waste.

• MHM are conducting similar on-site tests with NMP-AL80 / green waste mixes. Both tests indicate NMP-AL80 has the potential to act as a compost accelerant. If proven, this will open up a new domestic path to market for the product.

• Initial trials of an NMP-AL80 / brick rubble mix has demonstrated that this composite can be used as a low strength "concrete" suitable for fencing applications. It should also have application as a road base additive and a gravel road surfacing material. Ongoing testing will continue over the next six months.

Filter Press

The new Diemme filter press is being shipped and expected to arrive in Melbourne mid-May. Plans are well advanced on its installation and it is expected to be operational by the end of July 2013. Minimal disruption to processing is anticipated as the existing plant will operate while the new press is installed.

It is estimated that a further 15% reduction in processing costs will be achieved when the filter press is fully operational.

US Operations

John Pugh has been retained in a reduced capacity and is maintaining relationships with key potential customers who have strong interests in MHM establishing processing operations in the US.

While MHM sees the US as the next major step forward in its development, minimal expenditure will be incurred until the Moolap process using the new press is proven.

Further development of the US operations are not expected until the 4th quarter of this calendar year.

Corporate Changes

MHM Metals is in the process of changing its registered office to its main site at 80 Buckley Grove, Moolap Vic 3224.

For further information contact

Robert McAlister, CEO, on +61 (0) 352408999

Rudi Michelson at Monsoon Communications on +61 (0) 3 9620 3333