Increasing Equity at About 50 Cents per Gallon

"OMAHA (DTN) -- A significant drop in corn prices has led to a change of fortune for DTN's hypothetical 50-million-gallon ethanol plant, Neeley Biofuels Inc.

Since our June 15 update when we reported that the plant was drawing closer to break-even with a 2-cent loss, a drop in corn price has Neeley Biofuels turning an 18-cent-per-gallon profit as of Wednesday

DTN Senior Analyst Darin Newsom said chances are good that corn prices could continue to fall in the next month or two.

"Initial support could be found near $3.30 in late August," he said. "However, if volatility remains high and this support fails to hold the nearby contract could slide back to $3, possibly $2.90."

Though Neeley Biofuels is paying nearly $16 million in debt-service and depreciation costs on its plant -- or about 32 cents per gallon of ethanol produced -- many real plants are not in debt.

If Neeley Biofuels was not in debt, July 2 profits would be about 50 cents per gallon."

See Entire Article Here:
http://www.dtnethanolcenter.com/index.cfm?show=10&pid=48&mid=80

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If we figure that Global Ethanol has no debt on its 160mm capacity @ Lakota and Riga - It could be bringing in about 220K everyday in profits under these conditions. With even lower corn prices predicted and another record harvest on the horizon - more and more money should flood back into this industry.

SkunK