Alto Ingredients Inc (ALTO)

[Slashnuts]

BIOF's Q312 CC Highlights .9 pounds Confirmed

I believe the market has given PEIX a cold response to their choice of corn oil extraction equipment. Investors are well aware PEIX has thus far purchased inferior technology.

PEIX has announced the ICM corn oil systems they'll install extracts .5 pounds of oil per bushel.
BIOF now leads the industry with GERS' oil extraction technology, .9 pounds. The GERS licensed BIOF system is extracting an astonishing 80% more oil than the ICM AOS.

GERS' 3rd largest customer, BIOF, reports the highest corn oil extraction yields in the industry, .9 pounds. Greenshift investors have always known the pathway to the highest yields is through GERS but we've never had proof, until now. Despite a major decrease in ethanol production(10 million gallons), corn oil production increased by more than 1 million pounds.

Greenshift's 3rd largest customer is now on record for extracting more oil than any other producer in the world. However, while the .9 pound record may soon be the new norm, it will give way to a new record in about a month. 1.33 pounds of oil with method II will be online by the end of the year. There is no other technology that competes with .9 pounds, let alone 1.33.

There is no doubt Greenshift is the best. GERS' has the highest yields in the industry and these yields are moving higher.

In Q212 BIOF produced
46.5 million gallons of ethanol
10.3 million pounds of corn oil
Corn oil revenue was $4 million
COES rate was .66 pounds per bushel

In Q312 BIOF produced
36.27 million gallons of ethanol
11.47 million pounds of corn oil
Corn oil revenue was $4.4 million
COES rate was .9 pounds per bushel

"We work closely with Cargill, one of the world’s leading agribusiness companies, with whom we have an extensive commercial relationship. The two plant locations were selected primarily based on access to corn supplies, the availability of rail transportation and natural gas and Cargill’s competitive position in the area. At each location, Cargill has a strong local presence and owns adjacent grain storage and handling facilities, which we lease from them. Cargill provides corn procurement services, markets the ethanol we produce and provides transportation logistics for our two plants under long-term contracts."

"Thanks, Kelly. So to recap, our plan for the year has been to continue our focus on yield and coproduct returns, while continuing to be disciplined on running smart, keeping costs in line and operating safely.

Corn oil yield has improved by 35% from the first to second quarter and another 50% from the second to the third quarter. We do believe that we've gotten the optimum that we'll get out of corn, at least for the time being.

With respect to coproduct returns, we specifically focused on having superior product quality and optimizing our corn. We steadily realized a 0.9 pound per bushel yield from our modified corn oil extraction design and believe this has placed us well at the top of the industry. This is also a clear demonstration of our team's process engineering and operating capabilities.

On a positive side, corn oil revenues continue to increase, generating $4.4 million in revenues in the third quarter of 2012 versus $4 million in the second quarter of 2012. We also saw a slight increase in our distillers revenue over the prior year of $0.1 million as lower production of sales were offset by higher per unit prices received for our distillers products.

Finally, as to operations, the company's assets performed well during the quarter. Our plants continued to hit significant milestones, realized improved corn ethanol and corn oil yields the primary focus of our ongoing pursuit of operational excellence."

http://seekingalpha.com/article/1007051-biofuel-energy-management-discusses-q3-2012-results-earnings-call-transcript?page=2

"During 2011, the Company began installing corn oil extraction systems at each of its ethanol plants so that it could begin producing non-food grade corn oil as an additional co-product. These systems were installed using certain patented technology we have licensed from Greenshift Corporation for which we pay a royalty."

In October 2011, subsidiaries of the LLC entered into two operating lease agreements to lease corn oil extraction systems, one for each of its plants. Each lease agreement is for a period of two years and commenced in April 2012 when funding was completed. Pursuant to these lease agreements, each subsidiary is paying approximately $4.3 million per year for the corn oil extraction systems.

Pursuant to long-term agreements, Cargill is the exclusive supplier of corn to the Wood River and Fairmont plants for twenty years commencing September 2008.

Cargill has agreed to purchase all ethanol produced at the Wood River and Fairmont plants through September 2016.

The LLC, through its subsidiaries, entered into two operating lease agreements with Cargill. Cargill’s grain handling and storage facilities, located adjacent to the Wood River and Fairmont plants, are being leased for 20 years, which began in September 2008 for both plants.

Good Luck To All!$!$!$!$!$