Alto Ingredients Inc (ALTO) 2024 Q3 法說會逐字稿

Good day and welcome to the Alto Ingredients Inc, third-quarter 2024 financial results conference call. (Operator Instructions) Please note this event is being recorded.

大家好，歡迎參加 Alto Ingredients Inc 2024 年第三季財務業績電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Kirsten Chapman of Alliance Advisors, Investor Relations. Please go ahead.

現在，我想將會議交給 Alliance Advisors 投資者關係部門的 Kirsten Chapman。請繼續。

Thank you, Megan and thank you all for joining us today for the Alto Ingredients third-quarter 2024 results conference call. On the call today our President and CEO, Bryon McGregor; and CFO, Rob Olander.

謝謝你，梅根，謝謝大家今天參加 Alto Ingredients 2024 年第三季業績電話會議。在今天的電話會議上，我們的總裁兼執行長 Bryon McGregor；和財務長 Rob Olander。

Alto Ingredients issued a press release after the market closed today providing details of the company's financial results. The company has also prepared a presentation for today's call that is available on the company's website at altoingredients.com.

Alto Ingredients 在今天收盤後發布了一份新聞稿，詳細介紹了公司的財務表現。該公司還為今天的電話會議準備了一份演示文稿，可在公司網站 altoingredients.com 上查閱。

A telephone replay of today's call will be available through November 13. The details of which are included in today's press release. A webcast replay will also be available at Alto Ingredients website. Please note that the information on this call speaks only as of today, November 6. You're advised that any time sensitive information may no longer be accurate at the time of replay.

今天的電話錄音將保留至 11 月 13 日。詳細資訊已包含在今天的新聞稿中。網路直播重播也將在 Alto Ingredients 網站上提供。請注意，本次通話中的資訊僅截至今天（11 月 6 日）有效。請注意，任何時間敏感資訊在重播時可能不再準確。

Please refer to the company's Safe Harbor statement on slide 2 of the presentation available online which states that some of the comments on today's call constitute forward-looking statements and considerations that involve risks and uncertainties.

請參閱線上簡報第 2 頁的公司安全港聲明，其中指出今天電話會議上的某些評論構成涉及風險和不確定性的前瞻性陳述和考慮。

The actual future results of Alto Ingredients could differ materially from those statements. Factors that could cause or contribute to such differences include but are not limited to events, risks and other factors previously and from time to time disclosing the Alto Ingredients filing to the SEC. Except as required by applicable law the company assumes no obligation to update any forward-looking statements.

Alto Ingredients 未來的實際結果可能與這些聲明有重大差異。可能導致或促成此類差異的因素包括但不限於先前和不時向美國證券交易委員會揭露 Alto Ingredients 文件的事件、風險和其他因素。除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。

In management's prepared remarks non-GAAP measures will be referenced. Management uses these non-GAAP measures to monitor the financial performance of operations and believes these measures will assist investors in assessing the company's performance for the periods reported.

管理階層在準備好的評論中將會引用非公認會計準則 (GAAP) 指標。管理層使用這些非公認會計準則指標來監控營運的財務績效，並相信這些指標將有助於投資者評估公司在報告期間的表現。

The company defines adjusted EBITDA as unaudited consolidated net income or loss before interest, expense or income provisions for income taxes, asset impairment, unrealized derivative gains and losses, acquisition related expense and depreciation and amortization expense.

該公司將調整後的 EBITDA 定義為扣除利息、費用或所得稅、資產減損、未實現衍生性商品損益、收購相關費用以及折舊和攤銷費用的收入準備金前的未經審計的綜合淨收入或虧損。

To support the company's review of non-GAAP information a reconciling table was included in today's press release. On today's call Bryon will provide a review of our strategic plan and activity. Rob will comment on our financial results. Then Bryon will wrap up and open the call for Q&A.

為了支持公司對非公認會計準則資訊的審查，今天的新聞稿中附有一張對帳表。在今天的電話會議上，布萊恩將回顧我們的策略計畫和活動。羅布將對我們的財務結果發表評論。然後，布萊恩將結束會議並開始問答環節。

It's now my pleasure to introduce Bryon McGregor. Please go ahead sir.

現在我很高興介紹布萊恩麥格雷戈。先生，請繼續。

Thank you, Kirsten. Thank you all for joining us today. In Q3 2024 our Pekin campus increased its production capabilities and uptime compared to the prior year quarter, improving its profitability despite fluctuation and fluctuating market conditions. As a result, Q3 2024 consolidated gross profit improved to $6 million and adjusted EBITDA was $12.2 million. Rob will discuss our financial results in greater detail in a moment.

謝謝你，克爾斯滕。感謝大家今天的參與。2024 年第三季度，與去年同期相比，我們的北京園區提高了生產能力和正常運作時間，儘管市場條件波動，但獲利能力仍然提高。因此，2024 年第三季綜合毛利提高至 600 萬美元，調整後 EBITDA 為 1,220 萬美元。羅布稍後將更詳細地討論我們的財務表現。

First, I'd like to comment on today's TSA announcement. We've taken a significant step forward in our commitment to sustainability by finalizing a definitive CO2 transportation and sequestration agreement with Vault. Under the terms of the agreement, Vault will handle the transportation injection and sequestration of CO2 from our Pekin campus into the Mount Simon Sandstone formation in Illinois.

首先，我想對今天的 TSA 公告進行評論。透過與 Vault 達成最終的二氧化碳運輸和封存協議，我們在永續發展承諾方面邁出了重要一步。根據協議條款，Vault 將負責將二氧化碳從我們的北京園區運輸注入並封存到伊利諾伊州的西蒙山砂岩層。

This partnership marks a critical milestone on our journey towards a more sustainable and prosperous future. We await EPA submission and approval address financing and source equipment. This agreement brings us closer to achieving our goals of lowering our carbon footprint and monetizing the value of the biogenic CO2 we produce at our Pekin campus.

這次夥伴關係是我們邁向更永續和繁榮未來的關鍵里程碑。我們等待環保署提交並批准解決融資和源設備問題。該協議使我們更接近實現降低碳足跡和將我們在北京園區生產的生物二氧化碳的價值貨幣化的目標。

Regarding our operations in Q3, our Pekin campus wet mill increased productivity by its highest level since 2020. Reflecting in part, the results of our successful biennial repairs and maintenance outage in Q2. This translated into greater production of specialty alcohols reaching 42% of total Pekin sales volume 7% -- or 7 percentage points higher than the same period last year.

關於我們第三季的營運情況，我們的北京園區濕磨廠的生產效率達到了 2020 年以來的最高水準。部分反映了我們第二季成功進行兩年一度的維修和維護停工的結果。這意味著特種酒精產量將增加，達到北京總銷售量的 42%，比去年同期高出 7% 或 7 個百分點。

We remain on track to sell 90 million gallons especially alcohols in 2024 and expect to match this volume in 2025. We continue to modernize our equipment and facilities to improve reliability, lower our operational costs, and reduce our carbon footprint.

我們仍有望在 2024 年銷售 9,000 萬加侖酒精飲料，並預計 2025 年的銷售量也將達到這一水平。我們不斷對我們的設備和設施進行現代化改造，以提高可靠性、降低營運成本並減少碳足跡。

In addition to assigning the TSA, we are currently building a second alcohol loading dock at our Pekin campus. Our goal with this project is to improve river logistics by expediting the shipping costs, adding redundancy and expanding our capabilities to accommodate a wider array of barges.

除了指定 TSA 之外，我們目前還在 Pekin 園區建造第二個酒精裝卸碼頭。我們開展此計畫的目標是透過加快運輸成本、增加冗餘和擴展我們的能力以容納更多種類的駁船來改善河流物流。

We expect a synergistic effect and increpased overall loading efficiencies. The planned cost of this second dock is less than $3 million and is scheduled for completion in 2025. And in Magic Valley, we completed upgrades to harvesting technology system to capture high protein and corn oil products. And restart the facility to prove out the system and to benefit from positive crush margins at the time.

我們期待產生協同效應並提高整體裝載效率。該第二碼頭的計畫投資不到 300 萬美元，預計於 2025 年完工。在魔法谷，我們完成了收割技術系統的升級，以獲取高蛋白和玉米油產品。並重新啟動該設施來驗證系統並從當時的正擠壓利潤中獲益。

In October, our facility consistently achieved average ethanol production rates at full capacity. Our protein content reached 50% or greater and we've been able to expand our corn oil yields. We commend the human efforts of our operational team along with the technical support provided by [Soil Net].

十月份，我們的工廠持續實現滿載平均乙醇生產率。我們的蛋白質含​​量達到50%或更高，我們能夠提高玉米油產量。我們讚揚我們的營運團隊的人力努力以及提供的技術支持[土壤網]

This restart has informed us of the technology systems capabilities as we consider deployment at our other dry mills in the future. I'll have more to say on Magic Valley in a few minutes.

此次重啟讓我們了解了該技術系統的能力，我們將來會考慮將其部署到其他乾磨機上。幾分鐘後我將進一步談論魔法谷。

Turning to a market review, Q3 began with solid ethanol crush margins supported by strong exports. Domestic demand began to weaken with the decline in miles driven attributable in part to weather related events.

回顧市場，第三季開始，受強勁出口支撐，乙醇壓榨利潤率穩固。由於天氣原因，國內需求開始減弱，行駛里程減少。

As ethanol production remained relatively high, it has outpaced demand resulting in higher ethanol inventory levels and lower ethanol prices. In Q3, carbon prices were approximately 80% lower in Oregon and Washington, and 20% lower in California compared to the same period last year.

由於乙醇產量保持相對較高，超過了需求，導致乙醇庫存水準上升和乙醇價格下降。第三季度，俄勒岡州和華盛頓州的碳價與去年同期相比下降了約80%，加州的碳價下降了20%。

While carbon prices remained low in October, we began to see some recovery. In Q4 we expect corn prices to remain low reflecting a good harvest resulting in a strong carry out into 2025 which is a good thing. However, with corn prices lower in the US compared to international prices, demand for us, corn exports will likely increase straining logistics and driving up transportation costs.

儘管十月份碳價仍然很低，但我們開始看到一些復甦。我們預計第四季玉米價格將保持在低位，反映出豐收，導致 2025 年強勁上漲，這是一件好事。然而，由於美國玉米價格低於國際價格，美國玉米出口需求可能會增加，給物流帶來壓力並推高運輸成本。

Also, when corn prices are low, corn suppliers typically require prices to at least cover their costs, driving up corn bases. This is one reason why we expanded our corn storage capacity at Pekin and are considering increasing storage even further.

此外，當玉米價格低時，玉米供應商通常要求價格至少能覆蓋其成本，從而推高玉米基礎。這就是我們擴大北京玉米倉儲容量的原因之一，並且正在考慮進一步增加倉儲容量。

While higher transportation costs impact all ethanol producers, they have a more substantial impact on our Western operations. In short higher transportation costs significantly increase the price for delivered corn at our two Western plants compared to Midwest producers that have access to local corn supplies and cheaper bases.

雖然更高的運輸成本會影響所有乙醇生產商，但對我們西部業務的影響更為重大。簡而言之，與可以獲得本地玉米供應和更便宜基地的中西部生產商相比，更高的運輸成本大大提高了我們兩家西部工廠交付的玉米價格。

Although the improvements we've made at our Magic Valley facility have delivered economic benefits as we mentioned in our press release on October 15. The recent increases in regional corn basis and declining protein and corn oil market prices have resulted in overall margin compression outweighing the economic benefits of our plant improvements.

儘管我們在魔法谷工廠所做的改進已經帶來了經濟效益，正如我們在 10 月 15 日的新聞稿中所提到的。近期區域玉米基礎價格上漲以及蛋白質和玉米油市場價格下跌，導致整體利潤率壓縮超過了我們工廠改進帶來的經濟效益。

To address these challenges, we continue to pursue opportunities to maximize the western plants strengths and advantages. We've engaged Guggenheim securities to actively explore our alternatives to monetize or optimize these assets including through potential partnerships.

為了應對這些挑戰，我們繼續尋求機會，最大限度地發揮西部工廠的優勢和優勢。我們已經與古根漢證券公司合作，積極探索將這些資產貨幣化或優化的替代方案，包括透過潛在的合作關係。

Further, we will continue to explore operational opportunities and assess market trends. Unless there are notable improvements in economics at our Magic Valley facility, we plan to idle the plant before the end of Q4 and believe that will have a positive impact on the company's financial results.

此外，我們將繼續探索營運機會並評估市場趨勢。除非我們的 Magic Valley 工廠的經濟狀況有明顯改善，否則我們計劃在第四季度結束前停產該工廠，並相信這將對公司的財務業績產生積極影響。

Finally, while our Columbia facility is also experiencing margin compression, the combination of lower transportation costs premiums earned on lower carbon ethanol and revenues generated from our CO2 cells make Columbia more economically resilient than Magic Valley.

最後，雖然我們的哥倫比亞工廠也正在經歷利潤率壓縮，但低碳乙醇的較低運輸成本溢價和我們二氧化碳電池產生的收入相結合，使得哥倫比亞的經濟彈性比魔法谷更強。

Turning to our sustainability efforts, we completed our 2023 sustainability report and have increased our disclosure on topics such as environmental health, safety, quality, and social metrics. Our core values of responsibility, integrity, and quality drive our mission to produce the highest quality sustainable ingredients that make everyday products better.

談到我們的永續發展工作，我們完成了 2023 年永續發展報告，並增加了對環境健康、安全、品質和社會指標等主題的揭露。責任、誠信和品質是我們的核心價值觀，推動著我們的使命：生產最高品質的永續原料，使日常產品變得更好。

We proudly offer the 100% bio based renewable products from our specialty alcohol and essential ingredients to renewable fuels and plant-based proteins. Our highly efficient dry growing facilities are striving for carbon intensity scores below 50 by optimizing efficiency, upgrading energy infrastructure, and selecting sustainable feedstocks. Our dedication to sustainability and social responsibility extends to our customers, employees, investors, partners, suppliers and consumers and our focus on product-on-product quality and safety.

我們自豪地提供 100% 生物基可再生產品，從特殊酒精和基本成分到再生燃料和植物蛋白。我們高效的乾式種植設施正在透過優化效率、升級能源基礎設施和選擇永續原料，努力將碳強度得分降至 50 以下。我們致力於永續發展和社會責任，並將其延伸至我們的客戶、員工、投資者、合作夥伴、供應商和消費者，並專注於產品的品質和安全。

We conducted material assessments with internal and external stakeholders and identified multiple long term market opportunities to viably expand bio based renewable offerings. The third-party certification we earned include areas of oversight on risk management, chemical storage handling, transportation, and disposal, multiple food safety initiatives, quality management, good manufacturing practices and requirements for all active pharmaceutical ingredients and excipient products and supply chains for waste streams.

我們與內部和外部利害關係人進行了材料評估，並確定了多個長期市場機會，以有效擴大生物基可再生產品。我們獲得的第三方認證涵蓋風險管理、化學品儲存處理、運輸和處置監督領域，多項食品安全舉措，品質管理，良好生產規範以及所有活性藥物成分和輔料產品的要求以及廢物流的供應鏈。

Now I'll turn the call to Rob.

現在我將電話轉給 Rob。

Thanks, Bryon. I'll review the financial results for the third quarter 2024 compared to the third quarter of 2023. We sold 96.8 million gallons consistent with 97.1 million gallons sold during Q3 2023. However, due to lower market prices in Q3 2024 net sales were $252 million compared to $318 million in Q3 2023. Total gross profit was $6 million compared to $4.2 million in Q3 2023. I'll review the various contributing factors.

謝謝，布萊恩。我將比較 2024 年第三季與 2023 年第三季的財務表現。我們銷售了 9,680 萬加侖，與 2023 年第三季銷售的 9,710 萬加侖一致。然而，由於市場價格較低，2024 年第三季的淨銷售額為 2.52 億美元，而 2023 年第三季的淨銷售額為 3.18 億美元。總毛利為 600 萬美元，而 2023 年第三季為 420 萬美元。我將回顧各種促成因素。

We benefited significantly from a lower consolidated corn basis which declined $0.63 per bushel compared to last year. This was partially offset by market crush margins, declining $0.10 from a year ago to $0.41 per gallon.

我們從較低的綜合玉米基價中受益匪淺，與去年相比，每蒲式耳下降了 0.63 美元。這被市場壓榨利潤部分抵消，比一年前下降 0.10 美元至每加侖 0.41 美元。

The Pekin campus contributed $6.2 million to gross profit. Improving tenfold year over year in part, due to improvements resulting from our scheduled repairs and maintenance in Q2, as well as a positive shift in sales mix.

北京校區貢獻了 620 萬美元的毛利。年比成長十倍，部分原因是我們第二季的定期維修和維護帶來的改進，以及銷售組合的正面變化。

Specialty alcohol gallons sold increased by 4 million compared to the same period last year. However, this was partially offset by a 24% decrease in our average price for essential ingredients as compared to Q3 2023. Our Western facilities had a gross loss of $2.3 million compared to a gross profit of $1.5 million in Q3 of 2023.

與去年同期相比，特種酒精銷量增加了 400 萬加侖。然而，與 2023 年第三季相比，我們基本成分的平均價格下降了 24%，這部分抵消了這一影響。我們西部工廠的毛虧損為 230 萬美元，而 2023 年第三季的毛利為 150 萬美元。

The majority of this $3.8 million year-over-year decline in gross profit was driven by downtime and greater costs associated with upgrading and restarting our Magic Valley facility. Additionally, the Columbia facility generated $1.6 million less in revenue due to an 80% drop in carbon prices.

毛利與去年同期相比下降 380 萬美元，主要是由於停工以及升級和重啟 Magic Valley 工廠相關的成本增加。此外，由於碳價下跌 80%，哥倫比亞工廠的收入減少了 160 萬美元。

Also, our consolidated realized derivative gains were $3.6 million compared to $6.2 million for the same quarter in 2023. I'll review our hedging in greater detail in a moment. This quarter, we recorded $830,000 gain on sale of certain idled assets related to our purchase of Aventine.

此外，我們的綜合已實現衍生性商品收益為 360 萬美元，而 2023 年同期為 620 萬美元。稍後我將更詳細地回顧我們的對沖。本季度，我們出售了與收購 Aventine 相關的部分閒置資產，獲得了 83 萬美元的收益。

Our consolidated net loss was $2.4 million compared to a net loss of $3.5 million in Q3 2023. Adjusted EBITDA was $12.2 million, including the $3.6 million and realized gains on derivatives for Q3 2024. This compares to $13.6 million, including $6.2 million in realized gains on derivatives and a $2.8 million USDA grant related to the biofuel producer program in Q3 2023.

我們的綜合淨虧損為 240 萬美元，而 2023 年第三季的淨虧損為 350 萬美元。調整後的 EBITDA 為 1,220 萬美元，其中包括 2024 年第三季衍生性商品實現的 360 萬美元收益。相比之下，這一數字為 1,360 萬美元，其中包括 620 萬美元的衍生性商品實現收益和 2023 年第三季與生物燃料生產商計畫相關的 280 萬美元美國農業部補助。

As of September 30, our cash balance was $34 million, and our total loan borrowing availability was $92 million, including $27 million under our operating line of credit and $65 million subject to certain conditions under our term loan facility. We generated $18.6 million in cash flow from operations in Q3 bringing our year-to-date total to $6.3 million of cash provided by our operations.

截至 9 月 30 日，我們的現金餘額為 3,400 萬美元，我們的總貸款借款可用額度為 9,200 萬美元，其中包括我們的營運信貸額度下的 2,700 萬美元和我們的定期貸款額度下受某些條件限制的 6,500 萬美元。我們在第三季產生了 1,860 萬美元的營運活動現金流，使我們年初至今的營運活動現金流總額達到 630 萬美元。

We invested $500,000 in CapEx after accounting for various energy rebates, bringing our year-to-date CapEx total to $9.8 million. During Q3 on a consolidated basis we recorded $8.1 million in repairs and maintenance expense in line with the prior year quarter and we're on track with our 2024 estimate of $34 million.

在考慮各種能源回扣後，我們在資本支出中投資了 50 萬美元，使我們年初至今的資本支出總額達到 980 萬美元。在第三季度，我們的綜合維修和維護費用為 810 萬美元，與去年同期持平，並且與 2024 年 3,400 萬美元的預期相符。

Turning back to the derivatives. We are frequently asked about our hedging strategies and how they impact our financial results. While this is a complex area, I will provide a few highlights on how we use derivatives.

回到衍生性商品。我們經常被問到我們的對沖策略以及它們如何影響我們的財務結果。雖然這是一個複雜的領域，但我將提供一些關於我們如何使用衍生品的亮點。

We employ a variety of risk management strategies to mitigate the price volatility of different commodities throughout the year as a normal course of business. These strategies may include managing the spread between corn and ethanol prices, otherwise known as the crush margin.

我們在正常業務過程中採用各種風險管理策略來減輕全年不同商品的價格波動。這些策略可能包括管理玉米和乙醇價格之間的價差，也就是所謂的壓榨利潤。

We may also take positions on corn and natural gas. Currently, our core strategy is to hedge the premium over fuel grade ethanol of our specialty alcohol contracts that have fixed sales prices of up to one year or longer. Through the use of derivatives, we are able to lock in premiums for the duration of the contract over production that otherwise would be sold as ethanol.

我們也可能對玉米和天然氣採取立場。目前，我們的核心策略是針對特種酒精合約中燃料級乙醇的溢價進行避險，這些特種酒精合約的銷售價格固定期限為一年或更長時間。透過使用衍生性商品，我們能夠在合約期限內鎖定產量溢價，否則這些產量將作為乙醇出售。

For the positions that settle we record the cumulative unrealized gains or losses on these positions, since inception to realize. On the remaining unsettled positions, the change in market values at the end of each reporting period is reflected as unrealized.

對於已結算的頭寸，我們記錄這些頭寸自成立到實現的累計未實現收益或損失。對於剩餘未結算頭寸，每個報告期末的市場價值變化均反映為未實現。

Unrealized activity is not an indication of what will be realized in future periods. The best way to determine the value or obligation to be realized in the future measured as of a specific date is to note the amounts on our balance sheet. The net derivative asset or liability reflects what Alto would realize if we liquidated all of our positions as of that specific period and date.

未實現的活動並不能預示未來時期內將實現的活動。確定特定日期未來要實現的價值或義務的最佳方法是記錄資產負債表上的金額。淨衍生資產或負債反映瞭如果我們在特定期間和日期清算所有頭寸，Alto 將實現的收益。

With that, I'll turn the call back to Bryon.

說完這些，我就把電話轉回給布萊恩。

Thanks, Rob. Executing on our vision, we deliver the highest quality ingredients to our customers every day. Our scheduled repairs and maintenance, as well as our CapEx initiatives are delivering improved productivity. We've advanced our CCS initiative and furthered our strategy to reduce carbon emissions by entering in an agreement to facilitate the safe capture and storage of carbon emissions from our Pekin campus.

謝謝，羅布。為了實現我們的願景，我們每天向客戶提供最高品質的原料。我們的定期維修和維護以及資本支出計劃正在提高生產力。我們推進了 CCS 計劃，並透過達成協議來促進北京園區碳排放的安全捕獲和儲存，進一步推進了我們的碳減排策略。

We are positioned to manage changing market dynamics and to capitalize on the unique opportunities presented by our facilities. Our team is committed to improving profitability on sustainable consistent basis and we are optimistic about the future.

我們有能力應對不斷變化的市場動態，並利用我們的設施提供的獨特機會。我們的團隊致力於持續、一致地提高獲利能力，我們對未來充滿樂觀。

Operator we're ready to begin question-and-answer.

接線員，我們準備開始問答。

(Operator Instructions)

（操作員指令）

Eric Stein, Craig-Hallum Capital Group.

艾瑞克‧史坦 (Eric Stein)，Craig-Hallum 資本集團。

Hey, this is Luke Persons on for Eric Stein today. So we have a couple questions here. First, how should we be thinking about Magic Valley's targeted annual uplift of around $9 million that was originally outlined. Does that outlook still stand given what's been demonstrated so far?

嘿，今天我是 Luke Persons，代替 Eric Stein 播報。這裡我們有幾個問題。首先，我們應該如何看待魔法谷最初提出的每年約 900 萬美元的收入目標。從目前的情況來看，這種觀點仍然成立嗎？

So Luke, the original expectations were based on a fundamental contribution. The challenge is that the market conditions have changed dramatically since when we originally built those forecasts, particularly around corn oil values, protein values and they were based on a corn price that was significantly higher than what we're seeing today.

所以盧克，最初的期望是基於一項根本的貢獻。挑戰在於，自從我們最初做出這些預測以來，市場條件發生了巨大變化，特別是玉米油價值、蛋白質價值，而且它們基於的玉米價格遠高於我們今天看到的水平。

So does that's difficult to actually ascertain at the moment, as we said in our prepared remarks that we see significant benefit from this improvement. But given the material deterioration, particularly in the western market that any of the material benefits that we experience are currently more than offset by the deterioration and crush margin for those facilities.

所以目前實際上很難確定，正如我們在準備好的評論中所說的那樣，我們從這種改進中看到了顯著的好處。但考慮到物質的惡化，特別是在西方市場，我們所經歷的任何物質利益目前都被這些設施的惡化和壓榨利潤所抵消。

Great, that's helpful. Thank you and just a quick follow up question here. Touching on the carbon capture side and the SAFE CCS Act. Do you envision any change to the moratorium timeline for new permits given the recent ADM leaks?

很好，很有幫助。謝謝您，這裡只想問一個簡單的後續問題。談到碳捕獲方面和《安全 CCS 法案》。鑑於最近發生的 ADM 洩密事件，您是否認為新許可證的暫停期限會發生任何變化？

It's a good question. I mean, we certainly haven't seen any outward response from the from the EPA. What I would say generally though is that even from the time that ADM originally completed, well, not only submitted and had the approval but then completed the well work, there's been significant changes in the way that the work is done, the quality of the casings, the depth, the strength and the like so.

這是個好問題。我的意思是，我們確實沒有看到美國環保署的任何公開回應。不過，我想說的是，即使從 ADM 最初完成的時候起，嗯，不僅提交並獲得批准，而且隨後完成了油井工作，工作方式、套管質量、深度、強度等都發生了重大變化。

I don't know that it would be particularly applicable to whether it's ours or anyone else's going into the ground today. That said time will tell.

我不知道它是否特別適用於今天我們的還是其他人的。時間會證明一切。

Perfect. That's Helpful. Thank you. I'll pass it on.

完美的。這很有幫助。謝謝。我會傳達的。

(Operator Instructions) Justin Dopierala, DOMO Capital Management LLC.

(操作員指示) Justin Dopierala，DOMO Capital Management LLC。

Yeah, hi. Thank you. It sounds like as far as CoPromax Magic Valley, it is operating as (inaudible) but I mean, in the implementation of that, I mean, you guys must have lost tens of millions of dollars. So I guess my question is have you considered seeking recourse against harvesting technologies in some way to be compensated for the losses that they were likely responsible for?

是的，你好。謝謝。聽起來就 CoPromax Magic Valley 而言，它的運作情況（聽不清楚）但我的意思是，在實施過程中，你們一定損失了數千萬美元。所以我想我的問題是，您是否考慮過以某種方式尋求針對採伐技術的補救措施，以補償它們可能造成的損失？

Justin, we clearly have explored and are exploring all options both productive and probably less productive if you were to do it that way. And there is also opportunities, I guess what I would also say is that in response to not only your comments, but the question that was posed earlier was, we don't expect this to be a permanent state.

賈斯汀，我們顯然已經探索過並且正在探索所有的選擇，如果你這樣做的話，無論是富有成效的還是可能效率較低的。而且還有機會，我想我還要說的是，不僅針對您的評論，而且針對之前提出的問題是，我們不希望這是一種永久的狀態。

It certainly is a reflection of what's happening at the market in the current market, but that's not permanent. And so, we would still expect to see significant benefit from this improvement and we see opportunities to be able to do it elsewhere.

它確實反映了當前市場的狀況，但並不是永久的。因此，我們仍然期望從這項改進中看到顯著的效益，並且我們看到了在其他地方實現這項改進的機會。

So we take those all into account, we understand and probably experienced more than most of the pain and the struggle that we've had over the last couple of years to try and bring this to the fore. That said the fundamentals behind the technology and the fundamentals of doing it at Magic Valley are all still sound.

因此，我們將所有這些都考慮在內，我們理解並可能經歷了過去幾年中為努力將這一點凸顯出來而經歷的大多數痛苦和掙扎。也就是說，該技術背後的基本面以及在魔法谷實施該技術的基本原則仍然健全。

Oh okay. So I mean, based on your response, it does sound like you are actually potentially seeking recourse of what could potentially be tens of millions of dollars. Would that be fair to say?

哦好的。所以我的意思是，根據您的回复，聽起來您實際上可能正在尋求數千萬美元的追償。這樣說公平嗎？

Yeah. I mean, I wouldn't clarify any more than what I've already mentioned.

是的。我的意思是，我不會再進一步澄清我已經提到的內容。

Okay. And could you comment, you provide a bit more color on the Guggenheim higher and what precisely they're looking at and what the thought process is there?

好的。您能否評論一下，關於古根漢美術館的更多信息，他們究竟在關注什麼，他們的思考過程是怎樣的？

Yeah, I was considering all the options and it's not as if as we've said, historically we have evaluated from time to time and have engaged in this process multiple times with Guggenheim and with other investment banks to see and to make sure that we're maximizing and optimizing the return on investment for the company and for shareholders.

是的，我正在考慮所有的選擇，但並不像我們所說的那樣，從歷史上看，我們會不時進行評估，並多次與古根漢和其他投資銀行一起參與這一過程，以確保我們正在最大化和優化公司和股東的投資回報。

So it would include any and all aspects of that, whether it's to bring in partners, whether it's to sell the asset, whether it's to keep the asset on and to make further improvements to those facilities. What's the best way to liberate the real material benefits of those locations? I mean, yes, there are certain challenges that they face as you can see at the moment, but they also can contribute significantly to the benefit of the company and the shareholders.

因此它將包括所有方面，無論是引入合作夥伴，還是出售資產，還是保留資產並進一步改善這些設施。釋放這些地點的真正物質利益的最佳方法是什麼？我的意思是，是的，正如您目前所看到的，他們確實面臨一些挑戰，但他們也可以為公司和股東的利益做出重大貢獻。

And there's still a lot of untapped opportunities and qualities about those sites that are unique that you can't duplicate elsewhere. So we want to make sure that we evaluate all of that and that's part of --

這些網站仍然有許多尚未開發的機會和特質，它們是獨一無二的，無法在其他地方複製。因此，我們要確保評估所有這些，這是--

Yeah, absolutely. I mean, each one of your sites clearly have much greater value than the stock is currently worth. Given that and given the lack of profitability and been in somewhat favorable or quite favorable operating environments with this review also consider the sale of the entire company?

是的，絕對是如此。我的意思是，你們每個網站的價值顯然都比股票的當前價值高​​得多。有鑑於此，並且鑑於缺乏盈利能力，並且一直處於相對有利或相當有利的運營環境中，是否也考慮出售整個公司？

As we've always said that we owe it and our responsibilities are to shareholders and we calculate or we include all of those options all the time.

正如我們一直所說，我們對股東負有責任，我們一直在計算或考慮所有這些選擇。

Excellent. I think you need to expedite the process. Thank you.

出色的。我認為你需要加快這一進程。謝謝。

Thanks, Justin.

謝謝，賈斯汀。

This concludes our question-and-answer session. I would like to turn the conference back over to Bryon McGregor for any closing remarks.

我們的問答環節到此結束。我想將會議交還給布萊恩·麥格雷戈，請他作最後發言。

Thanks, Megan. Thank you all for joining us today. We appreciate your ongoing feedback and support. Have a good day.

謝謝，梅根。感謝大家今天的參與。我們感謝您一直以來的回饋與支持。祝你有美好的一天。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。