Corn Oil
In November 2008, we began separating some of the corn oil contained in our distiller's grains for sale. Corn oil sales represented approximately 2% of our revenues for our 2011 fiscal year. We anticipate continuing to fine tune the operation of our corn oil extraction equipment and we expect that it will operate more efficiently in the future. The corn oil that we produce is not food grade corn oil and therefore cannot be used for human consumption without further refining. However, corn oil can be used as the feedstock to produce biodiesel and has other industrial uses. SEE HERE page 6
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Even after three years they still expect it to work better in the future . . .
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Corn Oil Extraction Note
In July 2008, the Company and the financial institution amended the construction loan for an additional $3,600,000 to be used for the installation of a corn oil extraction system and related equipment. In April 2009, the Corn Oil Extraction Note was converted into a term note with interest at the greater of the 3-month LIBOR rate plus 300 basis points, or 5%, provided no event of default exists. Principal will be due in quarterly installments of $90,000, plus accrued interest, commencing in July 2009 through April 2014. The interest shall adjust based on the Company meeting certain financial targets, measured quarterly. At September 30, 2011 and September 30, 2010 the balance on the corn oil extraction note was $2,790,000 and $3,150,000, respectively.
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In a period when COES payback periods are a year or less, - AS GPRE EXPERIENCED - Cardinal reports above they have paid off less than 25% of a three year old, 2008 COES loan.
see here
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SkunK
Wednesday, December 14, 2011
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3 comments:
back to the future (I hope), Cheers to GERS.
http://www.otcmarkets.com/marketActivity/symbol-changes
where are we at in the court proceedings? have we even started ? are we close to the end?
That's too bad for Cardinal. But that's what you get when you mess with illegal systems. A real system would be paid in full by now. It's like ICM wants the thing running poorly to limit liability? Or they just don't care since the sale is over? GPRE's running at what 2.5% with more room to go? This things been running 3 years and it's still doing like 1.6%. Pathetic.
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