Golden Grain Energy, LLC

Tis the season for Ethanol plant filings and here is the latest from Golden Grain.  I have reported on previous Golden Grain reports HERE.  Their new filing is covered below:
 
GOLDEN GRAIN ENERGY, LLC
Corn Oil
During our 2009 fiscal year, we installed equipment that allows us to remove some of the corn oil that is contained in our distillers grains and sell the corn oil separately from the distillers grains. This was a new revenue source for us during our 2009 fiscal year. During our 2010 fiscal year, we experienced an increase in the total pounds of corn oil we sold of approximately 13% compared to our 2009 fiscal year. We produced more corn oil during our 2010 fiscal year compared to our 2009 fiscal year due to increased operation of the corn oil extraction equipment. We had more down-time for our corn oil extraction equipment during our 2009 fiscal year compared to our 2010 fiscal year due to reliability issues with our corn oil extraction equipment. In addition to our increased sales of corn oil, the average price we received per pound of corn oil sold during our 2010 fiscal year was approximately 27% greater compared to our 2009 fiscal year. Management attributes this increase in corn oil prices with increased use of corn oil in biodiesel and animal feed. [p. 23-24]

Management anticipates continuing to increase our corn oil production during our 2011 fiscal year as we continue to refine the operation of our corn oil extraction equipment. Since we only recently installed the corn oil extraction equipment, we are continuing to improve our efficiency operating this equipment. We are also in the process of upgrading our corn oil centrifuges which management anticipates will result in increased corn oil extraction efficiency and in turn increased corn oil production. However, management anticipates that corn oil prices may not be sustainable in the future as more corn oil enters the market. This could negatively impact our corn oil revenue. [p.24]

Corn Oil
We installed corn oil extraction equipment which became operational during our 2009 fiscal year. As a result, we did not have any corn oil sales during our 2008 fiscal year. We experienced reliability issues related to our corn oil extraction equipment during our 2009 fiscal year which did not allow us to utilize this equipment to its full potential. p28
*****
Management primarily attributes this increase in productivity with our installation of the corn oil extraction equipment which allows the ethanol plant to run more efficiently and other equipment adjustments made by management during our 2009 fiscal year. p.28

SkunK