General Discussion, page-721

Just a small point here. At this stage of development, VMT needs to build up its cash reserves - as well as using them for expansion - promoting sales. breaking into new markets etc.

As of the half yearly report, VMT had around $25mil in cash - and achieved a $7mil profit (half year). $25mil is peanuts and could disappear, if not well managed, quite quickly.

We need to remember that VMT is an automotive company. Even though it is ludicrous to compare VMT to Toyota, there are lessons here to be learnt. $25mil in the automotive industry is miniscule and a company like VMT should be building its cash up to around $100 mil before any (for example) dividends are paid or that it can look at acquisitions, new factories or larger capital outlays. VMT does not have many shares issued, so maybe a buy back is not warranted anyway.

I agree that the Aussie market is largely untapped by VMT - and should be aggressively chased after. It would be an easier exercise than trying to brek into some of the Asian markets.

VMT needs to get its production up beyond the 100,000 mark and that will start delivering annual profits that will allow it to start repaying SH patience with dividends.