Remember when GPRE announced they would be moving to aquire one of our early COES customers Global Ethanol? GPRE 28Sept PR HERE. They planned to finalize in the 4Q. They certainly did that.
New PR SEE HERE
ALSO Businessweek coverage HERE
SkunK
Thanks to 'Slashnuts' for the heads up on this one.
Saturday, October 23, 2010
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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.
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.
http://seekingalpha.com/article/231730-green-plains-ceo-discusses-q3-2010-results-earnings-call-transcript
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