Alto Ingredients Inc (ALTO)

[kel3]

LCFScredits,Ethanol,Corn futures & Options

LCFS Credits

In May Credits Were $11.50 to $13.50,Now Credits are $15 to $18

Pacific Ethanol Can Sell Futures & Options.

It Makes It Hard to Gauge Earnings from Credits,When They Can Sell them Years Out.

They Can Sell the Future & Make a Quarter Look Pretty Good Now.

Corn

we increased the amount of the plants' revolving credit facility by $5 million to a total of $40 million to provide additional immediate liquidity for the plants' operations.

As of June 30, we had total unused lines of credit of nearly $32 million with immediate access to $13 million in availability.

(So they had $40 mln/then as Of June 30th they had $32 mln) Corn Hedging?

they Also had Imediat Access to another $13 mln to Hedge Before July Corn Price Run Up.

At the Time of Working Up Q2 10Q they had 865,000 Bushels Already Hedged,According to 10Q

(they had Ample Time & Money to Hedge thier Corn + Buy Lower Priced Milo)

Milo Cost Advantage per Bushel to Corn as Of Friday

Milo December 2012 $7.37 Old Crop
Milo December 2013 $5.91 New Crop

Corn December 2012 $7.97 Old Crop
Corn December 2013 $6.36 New Crop

Ethanol


If They Have Been Selling Ethanol Futures & Options at This Summers High Prices,Future Qs Could Be Even More Booming!

future Corn Will Be Much Cheaper,When they Actually Make the Ethanol for Them.


WDGS

Have Been Selling @ a Very High Price All Summer!

Dont Know If They Can Sell futures & Options On Those

(They Have Lots Of Ways to Make a Q Look Good if They Need to Now)