foot in the door , page-10

As stated clearly after 0:47:00 in the recording of the AGM (http://www.brrmedia.com/event/118301) the high cash burn is once again owed to one-off expenses caused by the ligitation against Bayan in Singapore.

Although WEC have also said in that very AGM that they had not yet quantified the damages claimed from Bayan as part of the main proceedings in Singapore, the last ruling of the Supreme Court of Western Australia from 26 June 2013 (BCBC SINGAPORE PTE LTD -v- PT BAYAN RESOURCES TBK [No 3] [2013] WASC 239, p. 37) which confirmed the freeze order on Bayan's 51% share in Kangaroo Resources (KRL) gives an indication of the amounts in question as it contains the following pleading made by WEC:

"The estimated loss of profits ranges from $63 million from a production capacity of one million tonnes per annum to $749 million for 15 million tonnes per annum. Further, BCBCS claims damages for wasted expenditure."

Those wasted expenditures are specified with $US138 million on p. 38 of the same ruling.

So we are talking about total damages to the tune of $201m-887m which WEC may receive on day and which definitely justify the high spendings on legal fees.

In any case, as also stated on the AGM, the recently acquired Mountainside Coal Company (MCC) will turn WEC cashflow-positive within a year or so and since Capex for MCC will apparently be partly borne by Black River Asset Mangement, I don't see how WEC could plunge into financial straits. As a matter of fact management has assured that there are no plans for capital raisings in the midterm since it could easily fund at least two additional projects beyond MCC from its current cash reserves.

That said I fear your buying limit of $0.10 may be a wee to low to ever get executed.