Alto Ingredients Inc (ALTO): The current going rate for corn oil in t...

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Re: Jon32 post# 28534

Thursday, 05/07/2015 10:46:42 PM

Thursday, May 07, 2015 10:46:42 PM

The current going rate for corn oil in the Midwest and Eastern states is around 25.50/cwt or $0.255/lb (I don't have a number for California, but it doesn't appear to vary too much nation-wide).

On average, a reasonable allowance is 1.2 lbs of corn oil produced per bushel of corn processed for ethanol. An argument can certainly be made for a higher corn oil value/bushel. Someone more familiar with the PEIX extraction technology might be able to provide a more accurate number.

2.8 gallons of ethanol are produced per bushel

Madera nameplate capacity is 40M gal/yr, so

(1.2 lbs/2.8 gal/lb) x 40M gals x $0.255 = $4.4M (rounded) in additional gross revenue per year, or 1.1M/quarter (based on current prices).

Boardman is due to be producing by the end of Q2, so come July that additional gross revenue stream doubles.