Thursday, May 10, 2012

Cardinal Reports

One of the very first defendants reports:

Corn Oil
Our corn oil sales increased in the three month period ended March 31, 2012 as compared to the same period in 2011 as a result of increased production in the three month period ended March 31, 2012. 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 which resulted in a significant increase in production over prior years. Recent production issues have resulted in a lowered yields. However, management is working to resolve production issues and is optimistic that yields will increase as a result.

The average price per pound of corn oil was $0.39 per pound for the quarter ended March 31, 2012 as compared to $0.40 for the same quarter in 2011. Management expects corn oil prices will remain relatively steady in the near term but could decrease due to the elimination of the biodiesel tax credit or if there is an oversupply of biodiesel. In addition, additional plants entering into the market and producing corn oil could result in an oversupply of corn oil which could negatively affect prices unless additional demand can be created.

See Here p.21



Slashnuts said...

The Andersons Oil Extraction Surged 435% YOY!

ANDE shipped 9.1 million pounds of corn oil in Q112 compared to 1.7 million in Q111. It's nice to see one of our largest customers ramping up while infringers still struggle with faulty/knock-off equipment from ICM.

"Our Ethanol business holds investments in the three ethanol production facilities. The business also offers facility operations, risk management, and ethanol, corn oil and distillers dried grains (“DDG”) marketing to the ethanol plants it operates as well as third parties."

"Corn oil pounds shipped for the quarters ended March 31, 2012 and 2011 were 9.1 million and 1.7 million, respectively. E-85 gallons shipped for the quarters ended March 31, 2012 and 2011 were 4.1 million and 2.9 million, respectively."

Good Luck To All!$!$!$!$!$

Anonymous said...

When will they report on their first quarter?

Slashnuts said...

ANDE Very Pleased With Corn Oil Great Addition

4:30 "Reviewing additional expansion and acquisition opportunities."

6:10 "Corn plantings progress well ahead of averages. 71% is planted compared to 32% last year and the 47% 5 year average."

7:10 "The plants investments in corn oil, E-85, and Co2, have produced profitable coproducts that provide income even when the ethanol margins are not positive."

18:26 "We are pleased the ethanol group has remained profitable in the current ethanol margin environment as they continue to provide services for a fee and to sell coproducts such as DDG's, corn oil, E-85, and CO2."

Question and Answer Session

Question 22:50
"On corn oil, we've heard from a number of protein producers that taking out the corn oil has made it so that they're forced into using DDG's at a lower level than they have previously. Just wondering your thoughts on that and does the economics of corn oil more than offset potentially lower prices of DDG's as livestock producers use it less?"

Answer 22:18
"There are a number of different users of DDG's some of which are not impacted at all by the change in the corn oil extraction. 2nd, there are certain available fats that are more able to be controlled in the ingredients of the feed so there are some processors that actually like it extracted, they can control it a bit better with some other fat content. To answer the rest of your question we have not seen a decrease in DDG prices this year after we extracted the corn oil. So We've gone through all these different senerios and tested this with different end users and as of now this year our DDG prices are actually slightly higher than last year."

Question 27:50
"How much corn oil extraction has been implimented? Is it in your new facility yet and if not when do you think you'll put that in?"

Answer 28:00
"Corn oil is in place and operating at all three facilities and working fairly well. So we're very pleased with that it's been a great addition. Oh, I'm sorry, all four yes, Denison has a corn oil system as well that was already in place at the time of purchase so all four, yes."

Question 28:22
"Are you selling that corn in the spot market or are you hedging it forward?"

Answer 28:28
"The corn oil?
"Unh hunh"
"We've done some of both. We have a variety of interested parties in an off-take some of it to hedge some to sell forward, there's a variety of methods we use to do the best we can to lock in margins."

Good Luck To All!$!$!$!$

totaltruth said...

They shorted 88k shares yesterday that's 45% of what was traded! And we was being told someone would have to be crazy to short the shares at this time! That's almost half of all shares traded yesterday. Todays report hasn't came out yet so I don't know what todays will be like. Here's the links if anyone doesn't have them.

And even though we haven't heard a lot about dilution since the theory of 27mil was obviously wrong here the link on aprils volume again. Issue=gers&searchby=issue&sortby=volume&Month=4-1-2012&view.x=46&view.y=9&downloadname=mv201204.exe Greenshift Corporation (GERS) Stock Trading Info: S

nobody12378 said...

"And we was being told ..." ?

Anonymous said...


How much is ICM paying you to do this dirty work you are doing for them? Just curious.


totaltruth said...

Hey skunk here's you a link to the biof 10q. There's a lot of good stuff in there on greenshift. It starts about page 28. And picks back up in the 30's

nobody12378 said...

About $ #######.!! a year. Great gig isn't it?

Anonymous said...

Dvg pounds you 7 times a year? Do the wives know about this gay trade off?

Anonymous said...

The other day I overheard a plant in Carolton, MO, putting in tricanter? More royality payments $$$$$$$$$!!!!

Slashnuts said...

"We're looking to furthur improve operations to both increase yield and reduce production costs. We're moving to broaden our revenue streams through production and additional co-products."

"We're making strong progress on our objectives and look forward to updating you in the near future."

"Finally, we look to furthur diversify our revenue streams with additional coproducts. We are currently evaluating opportunities for implimenting corn oil seperation at the plants."

Question 21:10

"On corn oil, do you feel you'll be producing corn oil before the end of this year?

Answer 21:20

"That is our intention. We are very focused on that and are trying to put in place the right pathway to make that a reality at one or more of our plants this year. The advantages of doing that are very strong, particularly in our markets where corn oil has an even higher value then it does in the midwest. It can have a very significant beneficial impact to our financial performance and we are very focused on implementing that this year."

Good Luck To All!$!$!$!$!$!$

Slashnuts said...

In California, dairy cows are the main consumer of DDG's. Removing too much corn oil is much less of a concern when feeding the de-oiled DDG's to dairy cows. Producers want lower oil for these animals. I think that's why Calgren went with method II, in order to remove as much oil as possible. Corn oil in California sells for a premium compared to the midwest. I hope PEIX goes with GERS as chemicals from ICM's systems are very bad for dairy cows in particular.

Ryan Shugart said...

Slash, any idea what Biof made on oil this year? thnxs

Slashnuts said...

I was able to catch the BIOF CC this morning. When the replay becomes available, I'll post everything related to corn oil.

They talked about corn oil a lot on the CC. Off the top of my head, here's what they said.

The main focus in Q1 was getting COES online. The systems started earlier than expected, are ramping up faster than expected, with higher than predicted yields.

Corn oil revenues for Q112 were $2.7 million.

They're consistantly extracting 1/2# per bushel.

They sold 6,842,000 pounds at about $.40 a #.

They are looking at using chemical additives to push yields higher.

They are more than 2/3 of the way ramped up already or 67%.

So from this I believe in future periods BIOF will extract between 9 and 10 million pounds per quarter and generate annual revenues of roughly $16 million, at current prices.

I'm very surprised how quickly BIOF has ramped up.
More to come...

Good Luck To All!$!$!$!$!$

Slashnuts said...

BIOF Q112 Conference Call Highlights

BIOF is one of GERS' largest customers. Cargill owns a large percentage of BIOF. Cargill supplies the corn and buys the ethanol from the BIOF plants. I'm very surprised how quickly BIOF ramped up the COES in the quarter, and I think they were too. Here's the corn oil comments from the CC.

"On the positive side, we began selling corn oil in the first quarter of 2012 which generated $2.7 million in revenues"

"Our plan was to focus on yield and co-product returns and specifically on getting our corn oil extraction systems fully on-stream while continuing to be disciplined on costs and operating safely."

"Our corn oil system commissioning began at the end of December in our Nebraska plant and about a month later in our Minnesota facility. During the quarter, both systems were successfully commissioned with very few issues."

"Revenue contribution for the quarter from corn oil was $2.7 million and we estimate this represents about a 67% rate over the quarter for full production compared to what we expect to realize."

"We'll see yields at or above planned and pricing stable in the $.40 range during this quarter."

"In 2012, our plan is to remain focused on yield optimization and realizing the benefits of our co-product improvements over the full year. Of coarse we'll remain focused on cost and risk management which are foundations of our operating plan."

"I talked specifically about corn oil earlier and as Kelly noted we saw similar incremental contributions from distillers grain in the quarter."

"We saw a significant improvement in distillers during the quarter and a similar incremental contribution to what corn oil represents."

"Corn oil commissioning went very well, over all. During the quarter we were able to consistently meet yields of .5 pounds per bushel of corn at each location. This outcome was better than our commissioning plan. Our Minnesota start-up did kick off 2 weeks later than anticipated but this was intentional as we sought to leverage the lessons learned from our Nebraska experience."

"In the current quarter, we are working with our proprietary design and are beginning to trial additives to drive yields higher. We will be careful to maintain quality of both corn oil and other co-products."

"We'll seek ways to optimize yield and co-product recovery to realize the lowest possible production costs and maximize margins."

"Corn oil values have also been pretty steady despite pretty significant amounts of supply that's been coming online. We're selling to both biodiesel producers and increasingly gaining traction as a feed ingredient to the feed industry."

What's co-product return as a percentage of corn cost?
"23% or 27% with corn oil."

"Our plants have been registered for E-15 sales"

The replay can be heard by calling (866) 281-6782. Access code 167702.

Good Luck To All!$!$!$!$!$!$!$!$!$

Anonymous said...

WOW!! WOW!! Could someone explain what is in the "517" patent that will exonerate the "defendants"? Why are "all" of the defendants wanting to include the "517" patent in the lawsuit? I thought the "517" patent was a bigger mouse trap supporting the original patent. But GERS does not want to assert it and the defendants are vigorously trying to include it. WHAT UP?

I am a GERS investor. GLTA

jimmowrey said...

It clearly states that they do not wish to assert it "at this time." I suspect it is a safety net if the original lawsuit fails. They would then sue for infringement of the 517 patent. GLTU

Anonymous said...

GreenShift has six COES patents allowed, five issued. They have only asserted two. They will try to get as much as they can out of the two and use the others to threaten to plug any holes. More patents asserted costs GreenShift more money in litigation. They have determined it is more cost effective as a threat/ undetermined risk to the defendants.

The defendants decided it was cheaper to litigate rather than pay royalties. Its all about money. GreenShift lawyers job is to make it as expensive as possible for the defendants as a deterrrent to others. Also to protect its customers who deserve an advantage by paying royalties.

Board members who decide stuff at ethanol plants have to see the other four patents as possible additional risk rather than a set manageable cost. This should help them to settle. With settlement the risk is gone and all costs are fixed again.

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