After beating the Falls and obtaining the Mithril, return to Altair and give the Mithril to the smith in the armor shop. As you will see, it is very expensive. If you have built your party properly and have used a fist user so as to do massive damage return to Salamand. To the west of Salamand you will encounter the river that takes you to the falls. If you follow the river you will come to a small forest. Fighting the enemies there will net you good money, and sometimes drop mithril equipment for free! Use what you want, and sell the rest for early profit so as to buy spells supplies that were hard to purchase already.