Alto Ingredients Inc (ALTO)

[kel3]

Current Margins Positive With NO Hedging

Margins Are Positive & Have Been For All Of Q4

West Coast Ethanol $2.57 a gallon

Corn December 2012 $7.48
$7.48/3 = $2.493

$2.493 x 2 = $4.986

MILO $6.83
$6.83/3 = $2.276

2/3 Corn $4.986 + 1/3 Milo $2.276 =

$7.262 per Bushel Of Feed Stock

1.Ethanol + WDGS = $2.57 + $0.8904 = $3.4604

2.Feed Stock = $7.262/2.8 = 2.593
3.Natural Gas = .09
4.Enzymes = .04
5.Yeast = .03
6.Electricity = .03
7.Denaturants = .08
8.Other Costs = .30 (Wages,water,mainenance etc.)

Gross Operating Margin Is Line 1 Minus the sum of lines 2 thru 8

$3.4604 - $3.163 = $0.2974c

Current Margins @ Todays Corn & Milo Prices

= .29 3/4 c Per Gallon