What if you could invest in an asset class that would have exposure to a highly sought after commodity without a lot of the downside risks that are considered normal in the commodities markets?
And what if you could get the same tax treatment that you get when you invest in the oil and gas sector where the depreciation/depletion offsets the tax liability on your ordinary income?
Well now you can, and we are excited to be sharing this investment opportunity with you.
Here's my personal perspective on some of the things I really like about this investment opportunity:
We like the team, they know what they are doing and they have a great team of competent folks. On a recent site visit we got to meet numerous members of the team and we were impressed. Our CEO and managing partner is very well connected politically. He was appointed to the national coal counsel by President Trump and he is good friends with the head of the Department of Energy and former governor of TX, Rick Perry.
When considering the strong double digit cash flow and tax benefits, we are projecting that you would get all of your principle back in less than 2 years.
CPA Tim Gertz is working on this with me and we will be able to claim 100% bonus depreciation as well as some depletion, making this one of the most tax friendly investments I know of. AND it will offset your tax liability on Ordinary income (very much like oil and gas without much of the downside risks).
We like it, this asset class has been in a bear market for a long time under the previous presidential administration and although we are talking about coal, this is not a conventional coal play. We will be turning dirty coal into a cleaner energy by deriving valuable, highly sought after liquids from it and then ending up with a product called Coallite™ which is considered cleaner energy.
Texas is a very friendly state to do business in, especially when you are talking about the energy business.
There is a ton of demand for the liquid products and we have contracts set up with internationally known companies, names that you would recognize.
In many cases, our costs for the physical commodity (coal) are locked in for 10 or 15 years so it is much more predictable than most other commodities.
The distillation units and the processes are patented and or patent pending, because of our processes we can operate at much lower costs and higher profit margins than the few competitors in the market.
Return of Capital
When considering cash flow + tax benefits, we are projecting a return of capital in less than 2 years.
This is important for a number of reasons. The most obvious is you are taking a historically dirty, toxic energy source and cleaning it up, which makes it much easier to garner political support no matter which political party is in office.
Think about it like this, assuming we can make our projected numbers and adding in the tax deductions, an investor who is in the upper tax bracket would get more than 75% of their original invested capital back after the first full year.