VHGI DD page First a business description: VHGI
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VHGI DD page
First a business description: VHGI is a diverse company with assets and interests focusing on opportunities within the Precious Metals, Energy and Mining Markets. VHGI has recently initiated steps to leverage the company's operating history and corporate resources within the Coal Mining market and intends to pursue these opportunities through Lease-Purchase, Acquisitions and Joint Ventures opportunities.
VHGI Holdings, Inc. mission is to focus our resources toward the delivery of a competitive and sustainable rate of return to shareholders by exploring, acquiring and developing mining and energy assets vital to a consistent and growing economy.
Website: http://www.vhgiholdings.com
VHGI secures 13,000,000 in debt financing and Acquisition of Lily Group inc.
http://www.otcmarkets.com/stock/VHGI/news
SO WHY does the Acquisition of the Lily Group Inc stand out??? Well that is because of the prior news release on January 12th where Indianapolis Power & Light (IPL), a subsidiary of AES Corp. (NYSE: AES), has entered into a definitive agreement to purchase coal over 3 years from the Lily Group. As recently announced, VHGI has entered into a Definitive Stock Purchase Agreement with the Lily Group as announced January 9th, 2012.
The agreement calls for IPL to purchase 1.0 million tons of coal from the Landree mine and also provides IPL with an option to purchase an additional 180,000 tons in 2013 & 2014.
http://www.otcmarkets.com/stock/VHGI/news
****So IPL agrees to purchase 1.0 millions tons. Let us do the math here. A ton of coal goes for up to 45 USD per ton x 1.0 million tons=45,000,000 million USD in year 2012/2013 and with additional agreements in place. So now you can see why at .71 pps this is way way undervalued. I have not even plugged in other venues of potential and proven revenue stream.
BUT THERE'S MORE!
VHGI Holdings, Inc. Appoints Experienced Mining Professional Ron Hutchcraft as Executive Vice President of the Lily Group
Project Valued at over $90,000,000 according to Recent Valuation
The company now hires Ron Hutchcraft an executive with 25 years in the coal minng industry and the valuation of this coal project lean towards 90,000,000.
http://www.otcmarkets.com/stock/VHGI/news
I just want to say that this stock has flown UNDER the radar to this point. Lets do some pps projections shall we:
90M revs-10% margins=81M x 90M OS x 20 PE= 18 dollars per share. Here nor there but you get my point....undervalued or a high ceiling.
Remember coal is still in high demand:
At the same time Coal remains "KING" having many important uses worldwide. The most significant uses are in electricity generation, steel production, cement manufacturing and as a liquid fuel. Around 6.1 billion tonnes of hard coal were used worldwide last year and 1 billion tonnes of brown coal. Since 2000, global coal consumption has grown faster than any other fuel. The five largest coal users - China, USA, India, Russia and Japan - account for 77% of total global coal use.
VHGI also has holdings in Natural Gas and Gold:
outside of Prescott (in Yavapai County), AZ while we continue toward the purchase of a Coal Mining operations in Greene County, Indiana. We are also continuing our efforts t begin our drilling programs in North Central Tennessee. For more Information concerning these project please see Projects section of our web site.
About VHGI Gold
VHGI Holdings (OTCQB: VHGI) through its wholly owned subsidiaries VHGI Gold LLC, VHGI Energy LLC, and VHGI Coal LLC continue to initiate steps to leverage the current bull run within the Gold and Precious Metal Mining, Energy Production, and Coal Markets. While Gold is selling at all time historic highs; Oil & Gas and Coal continue to be trading at significant premiums as well. Global economic events have created significant opportunities within these markets while assets if properly vetted remain available at significant discounts. VHGI continues to pursue these opportunities through Lease-Purchase opportunities, Property Acquisitions and Joint Ventures.
Opportunties
Texas State Waters Opportunity
VHGI, though its relationship with Gulf Coast Exploitation, was the successful Bidder on 1,280 contiguous acres (in green below) in the Texas State Waters lease sale in April, 2010 A total bid of $513,998 was accepted by the General Land office later that month. These leases are located in the High Island, Jefferson County, Texas area. The 1,280 acres encompasses a structural feature adjacent to the High Island 60 Field (in pink) which has produced some 3 million Barrels of oil. VHGI Energy will hold a 100% working interest in the leases and will have a revenue interest of 80% to 75% depending on when the leases are developed in their 5 year term.
High Island Lease
The leases cover a three (3) million barrel oil prospect that, if proven, would generate two (2) million net Barrels of oil which in turn would have a present value of +/- $100 million PV@10%. Monthly oil production should exceed 3,000 BOPD net. That would create, if successful, an initial income of around $6 million per month. Moreover, there exist a 100 BCF abnormal pressured gas exploration prospect in the deeper Miocene sands.
Development Plans
VHGI's plans are to secure the seismic over the High Island 60 area and further document the prospect. VHGI will then seek industry drilling partners to develop the prospect and bring it into production in 2011.
Management:
VHGI Management
Scott A. Haire
As Chairman and CFO of VHGI Holdings Mr. Haire's business experience spans over twenty years in the commercial market space. Mr. Haire is an innovative entrepreneur in the fields of technology, healthcare, financial services, marketing and management. He has served various entities in the senior management capacity as Chairman, CEO, CFO and President. Mr. Haire is currently the Chairman and CEO of two public traded companies. He has previously owned multiple operating medical clinics and has extensive experience in both medical receivables financing and management of a business specializing in electronic claims and insurance system business processing. Mr. Haire holds a Bachelor of Science in Accounting from the University of Kentucky, where he was recognized as Academic All-Southeastern Conference (SEC) in football.
Douglas P. Martin
President / CEO of VHGI Holdings. A Public Market & Business Strategist for more than 25 years, Mr. Martin has cultivated business and financial expertise in the small-cap OTC arena as both an investor and securities broker to public and private clients. As a Director and Majority Owner of several companies active on the OTC Bulletin Boards, Mr. Martin understands the unique obstacles start up and small companies face in the public domain. He has focused a value added concept for each of his past clients by tailoring funding solutions that protect and enhance the current stock holder while attracting the new investor. Mr. Martin is intimately involved with each step necessary to allow the company to thrive in its market sector. Mr. Martin is a graduate of Sir Sanford Fleming College and attended the University of Guelph in Ontario, Canada. He has developed and extensive network of contacts in the financial communities in North America, Asia and Europe.
Share Structure/Filings/Chart
Shares Outstanding 88,919,076
http://www.otcmarkets.com/stock/VHGI/financials
by cube3..