Tuesday, November 28, 2006 1:06:17 AM
CHICAGO--The new Diversified Ethanol (OCTBB:ONYI) plant is the new A500
model that will produce up to 500,000 gallons (2,000,000 liters) per
year.
This plant will cost $1,600,000 (1,200,000 Euros). In addition to
the sales price, Diversified Ethanol (O.N.Y.I) offers an optional
guaranteed service and maintenance contract for a percentage of the
profit of operation, which would increase long term income, where
plants are sold to other companies.
The A500 is tentatively scheduled to start construction on January
3, 2007, which is ahead of initial company projections.
This new A500 plant has the potential to produce a minimum of
500,000 gallons of ethanol per year.
An ethanol plant valuation, for sale, is usually 5 times annual
revenues. This gives a potential market value of $2,500,000 (1,900,000
Euros) for resale once a plant is completed and fully operational.
Most publicly traded companies trade at 17.6 times their annual
earnings, but Ethanol Companies, due to the potential growth of the
industry, historically trade at much higher price to earnings
multiples.
A dramatic increase in demand for ethanol plants has taken place
since the U.S. Government's mandate to double the ethanol content in
gasoline, from 20 Billion liters per year to 40 Billion liters per
year in the United States.
The A500 plants are designed by Floyd Butterfield, Diversified
Ethanol's Chief Designer, who has been awarded honors for his past
projects. These plants will include all of his updated features.
Diversified Ethanol's CEO, Taylor Moffitt, said, "We hope to
produce the A500 quickly...and keep it for long term earnings or sell
it for a quick profit, or both."
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