Cardinal 10Q is out!

Cardinal is one of the original defendants in the COES litigation. We have followed their corn oil extraction progress in numerous blogs since 2008. After [I think I can fairly say] "struggles" with extraction, in the past year they have been using a chemical additive to boost production. They have now reached 1/2# of corn oil per bushel of corn. However, they recently have had production isssues and fell below that 1/2 pound mark. In January of 2012 they paid off their 2008 COEs loan.  ******************
The Company's plant has an approximate annual [Ethanol] production capacity of 100 million gallons
p. 8

Corn Oil
Our corn oil sales increased in the three month period ended December 31, 2011 as compared to the same period in 2010 as a result of increased production in the three month period ended December 31, 2011. Management continues to refine the operation of our corn oil extraction equipment. In March and April 2011, we began testing a chemical additive to assist in the extraction process and improve oil production. In our third fiscal quarter of 2011, we achieved in excess of one-half pound of corn oil per bushel of corn ground. This represents a significant increase in production over prior years. Recent production issues have resulted in a lowered yields. However, management expects yields to continue to average one-half pound of corn oil per bushel of corn ground once production issues are resolved.

The average price per pound of corn oil increased for the quarter ended December 31, 2011 as compared to the same quarter in 2010. However, we experienced a significant decline in corn oil prices to approximately $0.32 per pound by the end of the quarter. Management expects corn oil prices will remain relatively steady in the near term but could continue to decrease due to the elimination of the biodiesel tax credit or if there is an oversupply of biodiesel. P.22

See here

SkunK