GPRE, the largest COES customer of GreenShift, recently commented on their 3Q release. Yes, we recently covered what the release said HERE. Now here are some excerpts from the transcript of comments and Q&A about that SEC filing. The excerpts are about the GreenShift patented COES build out and the (at the time) upcoming Global Ethanol acquisition.
Todd Becker, Green Plains CEO
As we noted in the earnings release, corn oil extraction has begun at our Obion, Tennessee ethanol plant. We are working to install the remaining five plants over the coming 5 to 6 months. This project we believe will have positive financial impact, generating operating income in the range $15 million to $19 million annually based on the production of 75 million to 90 million pounds of corn oil.
The corn oil market remains very strong as well. The recent strength in soy and heating oil has been the main driver behind this. We recently announced the acquisition of Global Ethanol, LLC. Global has two plants with annual capacity of approximately 157 million gallons. We are paying $0.94 on a per gallon basis for the production assets plus working capital. This demonstrates our ability to make acquisitions at attractive valuations utilizing a combination of our strong balance sheet and our stock. That position allows us to meet the objectives of ethanol plant owners, some who want to have a continued ownership interest in the industry and those who want immediate liquidity.
Jerry Peters, GreenPlains CFO
Our liquidity position remains strong with $177 million in total cash and $18 million available under committed loan agreements, bringing our total available liquidity to approximately $195 million at the end of the quarter. We are pleased to have substantial liquidity available to us as we have seen increased commodity prices, higher volumes in each of our businesses, and acquisition opportunities.
Currently we are utilizing some of this liquidity for investments in the corn oil extraction project, which should total about $18 million, as well as the global acquisition, where we will invest about $32 million of our cash for the assets we are acquiring, as well as the working capital.
Here is the full transcript
SkunK
Thanks to 'slashnuts' for the link.
Saturday, October 23, 2010
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15 comments:
Interesting to note that ICM is doing the installation work on the GPRE corn oil systems.
Come on skunk. Do a PPS survey Poll.
ICM is doing the installation work for GPRE. That could be a sign of a treaty/settlement between GERS & ICM.
I don't think so. GPRE has had a long time relationship with ICM. Using them to do the install is more about maintaining that relationship, despite their contract with GERS and not about ICM/GERS playing nice.
How does KK a Veridium's majority shareholder separate his alligance
Veridium Corporation announced its receipt of an order from a Wisconsin based ethanol producer for the second stage of Veridium's patent-pending Corn Oil Extraction Systems(TM). Veridium's proprietary new Corn Oil Extraction Systems(TM) extract high grade corn oil from an ethanol by-product called distillers dried grain ("DDG").
You are looking at an old report. Here are the roots of GreenShift from the right side of SkunK's blog
"Roots" of Greenshift
Greenshift Corp - until present
GS Clean Tech Corp - until 2-2008 - 1-50 Reverse Split 12Dec2007
VERIDIUM CORP until 7-2006
KBF Pollution Management Inc from 3-1996 until 10-2003 - 1-20 Reverse Split 21Oct03
KBF Pollution Control Inc 1984-1996
Kreisler Bags - then - Kreisler Bags and Filtration 1979-1984 (hence "KBF" above)
ICM gets $18 million to install it.
At current prices and for the life of the patents, Greenshift's royalty's from all 12 of GPRE's COES will be $160,000,000.
I doubt ICM is too thrilled about building GPRE's systems, with "Tricanter pump technology", under Greenshift's license.
I think going to court, in light of the recent Flottweg "Tricanter technology" patent application being denied, twice, would be a little embarrassing.
ICM bought 2 machines from Greenshift, switched out the pumps with a Flottweg Tricanter, and claimed they invented COES. Their attempts to get arond the patents have failed.
They're really starting to look like fools, IMO.
The fact that a long-time customer of ICM still chose to do a deal with GERS speaks volumes about the litigation.
Even if it does not indicate a settlement in the works, it still says something about the merits of the case.
GPRE was obviously convinced that GERS not only has relevant IP claims, but that GERS also has value to add through its customer support and technical consulting.
Last I heard, the COES installs where GERS was excluded are performing at much lower performance rates than those installs where GERS was properly licensed and consulted.
Other customer prospects who have not yet installed COES will probably take note of the fact that GPRE chose GreenShift!
That is what we are all hoping for!!
The initial pre-trial conference was scheduled for today. Any news on that yet Skunk??
Here's what an ethanol producer said about corn oil prices last quarter(Q2)...
"The average price we received for our corn oil during the second quarter of 2010 was approximately 30% higher than the price we received for the second quarter of 2009. This was an increase of approximately $0.06 per pound. Management attributes this increase in corn oil prices with higher prices in the energy markets."
Here's what another producer said about the price of corn oil in Q3...
"In addition, the average price per pound of corn oil we received increased by approximately 43% for the first nine months of our 2010 fiscal year compared to the same period of 2009. Management attributes this increase in corn oil prices with a growing demand for corn oil produced by ethanol plants."
Here' what the CEO of GPRE just said last week about corn oil...
"The corn oil market remains very strong as well. The recent strength in soy and heating oil has been the main driver behind this."
Here's what the EPA said about corn oil's future in this country...
"In February 2010, the U.S. Environmental Protection Agency published its estimate that 70% of the U.S. ethanol industry will use corn oil extraction technology to produce 40% of America’s biodiesel feedstock by 2022."(680 million gallons per year)
That's why the ethanol industry is rushing to license with the one and only patent holder, Greenshift.
Here's proof from the CEO of GPRE that their 1st plant is online. Two more plants will be online and extracting within the next two months...
"As we noted in the earnings release, corn oil extraction has begun at our Obion, Tennessee ethanol plant. We are working to install the remaining five plants over the coming 5 to 6 months. This project we believe will have positive financial impact, generating operating income in the range $15 million to $19 million annually based on the production of 75 million to 90 million pounds of corn oil."
Corn oil from ethanol plants is in very high demand right now. Soy oil has increased from $.37 to $.495 per pound, or 34% since Mr. Becker made those comments about income from corn oil, last quarter. I believe corn oil is about $2.80 a gallon and will hit $3 shortly.
That's all good news for GERS, but what has become of the Skunk-man?
Unusual for him to go two full weekdays without some commentary!
Back in February, ICM said it would defend, for free, all it's customers that purchased Tricanters. Apparently, that's no longer the case. ICM wasn't willing to defend one of it's largest customers, GPRE. It probably has a lot to do with the Tricanter patent being denied in June.
So after years of ICM and Flottweg trying to get a patent, they were denied more than once. ICM's defense is now, "Hey, you can't patent that." Yea right...LMFAO Way Too Funny!$!$
In February, ICM said they would defend,for free, any producer that purchased their Tricanter knock-off.
It appears ICM is no longer willing to do this because they aren't defending one of their biggest customers, Green Plains.
They're no longer offering free defense of the litigation beacuse their Tricanter patent application was denied by the patent office, twice.
Green Plains signed a license with Greenshift because they are the true inventors of the methods and the prior art presented to the patent office in 2004 proves this.
So how about a recap...
Greenshift invents corn oil extraction
ICM buys machines from Greenshift
ICM switches the pump out with a Tricanter
Flottweg applies for Tricanter patent
ICM offers free defense in February
Tricanter patent gets denied for a 2nd time in June
ICM no longer offers free defense
The whole industry sees the writing on the wall and rushes to license with Greenshift.
Revenues are going to explode and we have more than enough licensed to be profitable. The shares we had to print to stay alive won't matter when we get the $100's of millions in settlements from the lawsuits.
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