Alto Ingredients Inc (ALTO)

[kel3]

I Calculated Margins as Of Friday with Milo

Margins Are Positive & Have Been For All Of Q4

West Coast Ethanol $2.57 a gallon

Corn December 2012 $7.52
$7.52/3 = $2.506

$2.506 x 2 = $5.013

MILO $7.03

$7.03/3 = $2.343

2/3 Corn $5.013 + 1/3 Milo $2.343 =

$7.356 per Bushel Of Feed Stock

1.Ethanol + WDGS = $2.57 + $0.8757= $3.4404

2.Feed Stock = $7.356/2.8 = 2.627
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

$3.4404 - $3.197 = $0.2434

Current Margins @ Todays Corn & Milo Using 1/3 Milo & 2/3 Corn Prices

= .2434 c Per Gallon