Ann: Market Update - Terra Dura Update, page-6

Thanks Plough

My ref to SIBS was that many were on vehicles coming out of service and I never got straight answers in regards to how much of the business they got with change to hilux an ranger Iveco etc.. That was their bread and butter and should have been throwing off cash but it hasn't IMO.

In regards to my comments on terra dura as you would understand there are many factors in regards to whole of life and payback and each user will have different answers depending on usage, fleet maintenance , remoteness , labour costs , ground conditions etc etc. It has been a very long time coming so I hope they get sales and can afford and manage the rollout. I know buyers who want them and the delay has forced them to build new equipment without them and payback would have been long term unlike the very harsh users so they have missed that replacement cycle of 10 sets.

Really need to see where the margins are in the new marketing, distribution and wholesaleing market as it is a new structure and they can't afford to be greedy as they need them out there and used to get a good reputation but they can't give em away and not get a return for shareholders so a balancing act as there is a whole lot of marginal value buyers who very price sensitive. I know of a initial market of several hundred pairs that they are yet to address and if management stands up in the next 6 months and product performs it will be interesting to see if management are learning their new client base and directly approaching them with a value proposition.

The large truck market still stitting on the shelf after fox trials etc irks me a lot as no one will comment on why. I can't believe someone like lindsday wouldn't just buy the company up and take the commercial advantage it should offer to all mine haulage and on road lower maintenance costs for trailers but it seems universal generic cheap parts beat the labour costs and reality of ongoing availability of trailers for use.