MHM Press Conference Scheduling

Last Friday MHM announced the scheduling for their US press conference. Now many people may simply skim over this and not think too much about it (given that we were told about it a week or two ago in one of the US supply contract announcements). However, the most important piece of information is that it will take place on 12 December in the US.  This means that there are only 15 trading days left for anyone who wishes to take a position in MHM before this announcement is made. This is not a lot of time and could help support the share price over the next three weeks.

The press conference will be held with senior state and local government officials. Again this is a very important statement. I have previously said that you do not bother holding a press conference unless you have important information or news to outline. Also senior state officials do not tend to align themselves with projects that are likely to face public backlash or delays. Their involvement should not be underestimated in my opinion.

The event is scheduled to outline government grants and incentives that are expected to be formally approved prior to this time, together with information regarding MHM’s property acquisition. Again none of this is new, but I think these incentives have the potential to really surprise the market. In MHM’s previous announcement they said that they were looking at rail access for their plant. This led me to speculate that they may build a plant that has the potential to be upgraded to two or three times its original capacity, rather than build two or three smaller plants. From a state and local government point of view I am sure they would rather see all the jobs stay in their area rather than share them with other states. If this is the case then they may be willing to throw some nice concessions our way.

Finally the details of the press conference will be released prior to the commencement of trading on Tuesday 13 December and another press conference is scheduled in Melbourne for later that day. It is interesting that they are also holding a conference in Australia. I guess they want to generate additional news content in Australian based publications for Australian investors. It all helps!