Sunday, July 25, 2010

Ethanol Giants and PPS**

With the recent announced closing of the giant GreenShift deal with GPRE - the 4th largest Ethanol producer in North America, (which may add about $3-4M [$3.696M**] to the bottom line) the SkunK has started to look at the 3rd, 2nd and the largest producer and what THAT could mean to GreenShift's bottom line.  Is the SkunK daydreaming again?  Well, everyone is thinking about corn oil extraction and GreenShift has the patents . . .  You decide.
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POET, the largest ethanol producer in the world, is a leader in biorefining through its efficient, vertically integrated approach to production. The 22-year-old company produces more than 1.6 billion gallons of ethanol and 9 billion pounds of high-protein animal feed annually from 26 production facilities nationwide. POET also operates a pilot-scale cellulosic ethanol plant, which uses corn cobs as feedstock, and will commercialize the process in Emmetsburg, Iowa. For more information, visit http://www.poet.com.

June 30, 2010 Cloverdale plant UPDATE
The transaction closed June 29. Once open, the Cloverdale plant will be POET’s fourth in Indiana and 27th overall, putting annual ethanol production capacity at 1.7 billion gallons per year.


Poet, the world’s largest ethanol producer, has 27 plants and expects to ferment 3.5 billion gallons of biofuels by 2022. Its game plan is to get 1 billion from expanding production at its facilities, says Weishaar.

Another 1.4 billion will come from licensing technology to other grain ethanol companies and a final 1.1 billion will result from non-corn feedstock that Poet expects to process.  Corporate headquarters is in Sioux Falls with corporate offices in Albert Lea, MN and Wichita, KS.

The Day GreenShift went to POET HQ
More information regarding GreenShift and its patented and patent-pending extraction technologies will be made available in Winsness’ presentation titled “Back End Fractionation” at the upcoming 2nd Annual Commercial Ethanol Technology and Research Workshop on October 28, 2009 at the Sioux Falls, South Dakota headquarters of POET.

SkunK estimate* on GERS bottom line by licensing Poet in 2010 with GreenShift COES:   
(1.7B/100M)x2.2Mx1.75x.2) GreenShift Bottom line +$13Million
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7/9/2010 UPDATE
Archer Daniels Midland Company (NYSE: ADM) today marked the opening of its new Columbus, Neb., ethanol dry mill, which provides the Company with an additional 300 million gallons of annual ethanol production capacity.

ADM’s total ethanol production capacity will reach 1.8 billion gallons per year once a second corn dry mill in Cedar Rapids, Iowa, opens later in 2010. Our global headquarters is in Decatur, Illinois, and our net sales for the fiscal year ended June 30, 2009, were $69 billion.

(1.8B/100M)x2.2Mx1.75x.2) ADM Deal to GreenShift bottom line - +$13.86 Million
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Valero is also a leading ethanol producer with ten ethanol plants in the Midwest with a combined capacity of 1.1 billion gallons per year,

Valero Corporate Headquarters San Antonio, Texas
(1.1B/100M)x2.2Mx1.75x.2) Valero Deal to GreenShift Bottom line +$8.47Million 
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*ALL Estimates based on minimum 2.2mmgy of corn oil/100mmgy of ethanol production @ $1.75/gallon @ 20% standard licensing fee.

**Adding $3.696M to the GreenShift bottom line and figuring a maxed 20B OS, this GPRE deal theoretically adds .0001848 to the stocks earnings.  If you figure this long range deal is worth a conservative ten time earnings, then this deal  is worth a theoretical .001848 pps now (+18 times present pps) and .01848pps after the 2 August 10-1 Reverse Split.
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SkunK

1 comment:

Anonymous said...

Your mathematics is correct, I figured the same thing out, and got the exact same number.

 
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