REX American Resources Corp (REX) 2023 Q4 法說會逐字稿

Good morning, and welcome to the REX American Resources Fourth Quarter and Full Fiscal Year 2023 conference call.

早安，歡迎參加 REX 美國資源公司 2023 年第四季和整個財年電話會議。

As a reminder, today's call is being recorded and at this time all participants are in a listen only mode.

提醒一下，今天的通話正在錄音，此時所有參與者都處於只聽模式。

A brief question and answer session will follow the formal presentation.

正式演講後將舉行簡短的問答環節。

I would now like to turn the call over to Mr.Douglas L. Bruggeman Chief Financial Officer of RxAmerica.

我現在想將電話轉給 RxAmerica 財務長 Douglas L. Bruggeman 先生。

Please go ahead.

請繼續。

Good morning, and thank you for joining REX American Resources Q4 and full fiscal year 2023 conference call.

早安，感謝您參加 REX American Resources 第四季和 2023 財年完整電話會議。

And joining me on the call.

並加入我的通話。

Stuart Rose, Executive Chairman, and Zafar Rizvi, Chief Executive Officer, will get to our presentation and comments momentarily as well as your questions and answer session.

執行主席 Stuart Rose 和首席執行官紮法爾·裡茲維 (Zafar Rizvi) 將立即聽取我們的演講和評論以及問答環節。

But first, I'll review the safe harbor disclosure in addition to historical facts or statements of current conditions, today's conference call contains forward-looking statements that involve risk and uncertainties within the meaning of the Private Securities Litigation Reform Act of 1995.

但首先，除了歷史事實或當前狀況的陳述之外，我將回顧一下安全港披露，今天的電話會議還包含前瞻性陳述，這些陳述涉及1995 年《私人證券訴訟改革法案》含義內的風險和不確定性。

Such forward-looking statements reflect the Company's current expectations and beliefs, but are not guarantees of future performance.

此類前瞻性陳述反映了公司目前的預期和信念，但並非對未來績效的保證。

As such, actual results may vary materially from expectations.

因此，實際結果可能與預期有重大差異。

The risks and uncertainties associated with the forward-looking statements are described in today's news announcement and in the Company's filings with the Securities and Exchange Commission, including the Company's reports on Form 10 K and 10 Q. Rex American Resources assumes no obligation to publicly update or revise any forward-looking statements.

與前瞻性陳述相關的風險和不確定性在今天的新聞公告和公司向美國證券交易委員會提交的文件中進行了描述，包括公司在10 K 和10 Q 表格中的報告。Rex American Resources 不承擔公開更新的義務或修改任何前瞻性陳述。

I would now like to turn the call over to Stuart Rose.

我現在想把電話轉給史都華·羅斯。

Good morning, and thank you again to everyone for joining us.

早安，再次感謝大家加入我們。

Fiscal 2023 was a great year for REX American.

2023 財年對 REX American 來說是個偉大的一年。

Our core business of ethanol and co-product production was strong with 285.9 million gallons of ethanol sold, an increase of more than 7% over 2022.

我們的乙醇和副產品生產核心業務表現強勁，乙醇銷售量為 2.859 億加侖，比 2022 年成長超過 7%。

We kicked off construction of the water energy carbon capture and sequestration project at our Gibson City, Illinois location.

我們在伊利諾州吉布森市啟動了水能源碳捕獲和封存計畫的建設。

We were also on track to complete the first phase of ethanol production capacity expansion, the One Earth Energy facility on the financial front, 2023.

我們還有望在 2023 年完成乙醇產能擴張的第一階段，也就是財務方面的 One Earth Energy 設施。

So the most profitable quarter in the Company's history from a net income per share perspective during the third quarter, while also proud to announce that both fourth quarter and full year 2023 were the second most profitable quarter and full year and full year on Rex's 39 year history as a public company.

因此，從每股淨利潤的角度來看，第三季度是公司歷史上利潤最高的季度，同時我們也自豪地宣布，第四季度和2023 年全年都是Rex 39 年來利潤第二高的季度和全年。作為一家上市公司的歷史。

This is quite an achievement for our company.

這對我們公司來說是一項相當大的成就。

But the Board during 2023, the team at REX American consistently look over the horizon and identified and met challenges proactively drove success throughout the year.

但在 2023 年期間，REX American 的董事會、團隊始終放眼未來，積極發現並應對挑戰，推動全年取得成功。

I'd like to thank everyone at our company for their hard work and dedication to making Rex for a successful and profitable company that it is our operational excellence has been the cornerstone of our success in the market every day, monitoring and optimizing our contract positions to continue producing ethanol and co-products efficiently and profitably our commitment to innovation and sustainability has never been stronger than ever, as evidenced by the ongoing construction and permitting process for our carbon capture projects, which, if successful, will reduce REX's carbon footprint and produce net income benefits.

我要感謝我們公司的每個人的辛勤工作和奉獻精神，使 Rex 成為一家成功且盈利的公司，我們的卓越運營一直是我們每天在市場上取得成功的基石，監控和優化我們的合約狀況為了繼續有效率、獲利地生產乙醇和副產品，我們對創新和永續發展的承諾比以往任何時候都更加堅定，我們碳捕集計畫正在進行的建設和許可流程就證明了這一點，如果成功，將減少REX的碳足跡和產生淨收入效益。

We expect the One Earth Energy CCS project to add significantly to our financial results once it is approved now up and running.

我們預計 One Earth Energy CCS 專案一旦獲得批准並開始運行，將顯著增加我們的財務表現。

This assumes we receive all necessary permits and approvals.

這假設我們收到所有必要的許可和批准。

As far as the additional avenues of growth, we're always looking at facilities that come on the market.

就其他成長途徑而言，我們一直在關注市場上的設施。

So at present, we do not see opportunities that fit within our standards of quality and which make economic sense to our portfolio.

因此，目前我們沒有看到符合我們品質標準且對我們的投資組合具有經濟意義的機會。

I'm proud of the work we have done and excited about the direction of our company to look into the next several years.

我為我們所做的工作感到自豪，並對我們公司未來幾年的發展方向感到興奮。

I now turn things over to CEO. of far recipe to discuss to one nurse project in greater detail.

我現在把事情交給執行長。需要更詳細地討論一個護士專案的遠方配方。

Thanks, Steward power, carbon capture and sequestration project in Gibson City.

謝謝吉布森市的 Steward 電力、碳捕獲和封存項目。

Illinois is not only a testament to our commitment to the environment, but also to our strategic foresight in positioning the Company for profitability well into the future.

伊利諾伊州不僅證明了我們對環境的承諾，也證明了我們在定位公司以實現未來盈利方面的戰略遠見。

As we have discussed with you before the one-off synergy project.

正如我們在一次性協同項目之前與您討論過的那樣。

If all approvals are received and the facilities operational to contribute to the bottom line through both 45 D and 45 Q. tax credit, which we plan to maximize with the related expansion of our Gibson City ethanol production facilities capacity to 100 million gallon per year.

如果收到所有批准並且設施投入運行，將透過 45 D 和 45 Q 稅收抵免為利潤做出貢獻，我們計劃透過將吉布森市乙醇生產設施產能擴大到每年 1 億加侖來最大限度地提高利潤。

We expect these two projects together could add significantly to our bottom line addition of CCS to our ethanol facility also opens up other potential business lines, such as production of low-carbon ethanol for use in so-called alcohol project process for sustainability, aviation fuel products, as well as the potential for us to sequester toward carbon for other producers in our classics, but well plus six injection wells, both of these are additional business option funds.

我們預計這兩個項目一起可以顯著增加我們的利潤，在我們的乙醇工廠中添加 CCS 也開闢了其他潛在的業務線，例如生產低碳乙醇用於所謂的可持續酒精項目流程、航空燃料產品，以及我們在經典產品中為其他生產商封存碳的潛力，但加上六口注入井，這兩者都是額外的商業選擇基金。

We are exploring.

我們正在探索。

However, the near-term focus is getting the facility up and running.

然而，近期的重點是讓該設施啟動並運行。

To that point.

到那時。

We continue to make progress in construction of the CCS, and you can see picture of the in-process projects in our updated investor presentation, which is available on our website.

我們在 CCS 建設方面繼續取得進展，您可以在我們更新的投資者簡報中看到正在進行的專案的圖片，該簡報可在我們的網站上找到。

As of this morning.

截至今天早上。

Currently, the team is focused on completing construction of the carbon capture portion of the facility preparation for emergency response plans and getting all of the required permitting completed, we continue to expect completion of construction of the carbon capture facility by the end of the second calendar quarter of 2024 and beginning of testing after additional power sources are in place.

目前，該團隊的重點是完成該設施碳捕集部分的建設，為應急計劃做好準備，並完成所有所需的許可，我們仍然預計在第二個日曆結束時完成碳捕集設施的建設2024年第四季度，額外電源到位後開始測試。

As far as permitting and approvals we continue to monitor our Class six injection permit application for the Environmental Protection Agency, our pipeline application with the Illinois Commerce Commission and obtaining our special use unit per month for the country.

就許可和批准而言，我們將繼續監控我們向環保署提交的六級注入許可證申請、向伊利諾伊州商業委員會提交的管道申請以及每月為該國獲得的特殊用途單位。

We are very keen to ensure complete compliance with our regulatory requirements and are committed to working closely with all appropriate agency to get one often as the project approved and into service as fast and as safely as possible.

我們非常熱衷於確保完全符合我們的監管要求，並致力於與所有適當的機構密切合作，以便在專案獲得批准後儘快、盡可能安全地投入使用。

As of year end, we have invested approximately $38.6 million into the Oneok carbon capture project, an associated ethanol production capacity expansion is compared to total budget amount, $165 million to $175 million for both the CCS projects and ethanol production expansion at Gibson City.

截至年底，我們已向 Oneok 碳捕集項目投資約 3,860 萬美元，與吉布森市 CCS 項目和乙醇生產擴張的總預算金額相比，相關乙醇產能擴張為 1.65 億至 1.75 億美元。

This investment underlines our belief in the project's potential and our commitment to sustainable energy solutions.

這項投資突顯了我們對該項目潛力的信心以及我們對永續能源解決方案的承諾。

I would now like to hand the call to our CFO, Doug Berkman to discuss our operational and financial results.

我現在想將電話轉給我們的財務長道格·伯克曼 (Doug Berkman)，討論我們的營運和財務表現。

Thanks so far.

到目前為止謝謝。

I'll begin with our operational results.

我將從我們的營運結果開始。

Rex's ethanol sales volume during fiscal year 2023 were 285.9 million gallons, an increase of 7% and 1.5% over fiscal year 2022.

Rex在2023財年的乙醇銷售量為2.859億加侖，較2022財年成長7%及1.5%。

Sales volumes of 265.8 million gallons average selling price for our consolidated ethanol volumes was approximately $2.22 per gallon for the full year.

全年銷量為 2.658 億加侖，我們綜合乙醇銷量的平均售價約為每加侖 2.22 美元。

Dry distillers grain sales volume during fiscal 2023 totaled 652,000 tons, a 9% increase over fiscal 2022.

2023財年乾餾糧銷量總計65.2萬噸，較2022財年成長9%。

Volumes.

卷。

Volumes during the fourth quarter were approximately 169,000 tons, an increase of 13.4%.

第四季的銷量約為169,000噸，成長13.4%。

And for fourth quarter 2022, average selling price for DDG. was approximately $213.55 per ton for the full year, modified distiller grain sales volume were 54,000 tons in fiscal year 2023 compared with approximately 94,000 tons in fiscal year 2022.

2022 年第四季 DDG 的平均售價。全年價格約為每噸 213.55 美元，2023 財年改良酒糟銷售量為 54,000 噸，而 2022 財年約為 94,000 噸。

For the fourth quarter, MG. volumes totaled approximately 18,000 tons increase of 7.3% over the same period in 2022.

對於第四季度，MG。總量約 18,000 噸，較 2022 年同期成長 7.3%。

Average selling price for modified distiller grain was approximately $103.54 per ton for the full year.

全年改性酒糟的平均售價約為每噸 103.54 美元。

Foreign oil sales volume in fiscal year 2023 were approximately [87.5 million pounds] compared to [77.8 million pounds] sold fiscal year 2022, an increase of approximately 12.5% for the fourth quarter.

與2022財年的[7,780萬英鎊]相比，2023財年的海外石油銷量約為[8,750萬英鎊]，第四季成長約12.5%。

Foreign oil sales totaled approximately [22 million pounds] an increase of 7% over Q4 2022 average selling price for Rex coronary products was approximately [$0.60] per pound for the full year.

國外石油銷售總額約為 [2,200 萬磅]，比 2022 年第四季度 Rex 冠狀動脈產品的全年平均售價約為每磅 [0.60 美元] 增長 7%。

Gross profit for fiscal year 2023 was $98.2 million versus gross profit of approximately $48.6 million for fiscal year 2022.

2023 財年的毛利為 9,820 萬美元，而 2022 財年的毛利約為 4,860 萬美元。

The more than 100% increase in gross profit was due to improved production levels and lower corn and natural gas prices.

毛利成長超過100%是由於生產水準提高以及玉米和天然氣價格下降。

Gross profit in Q4 2023 was $30.4 million compared to $13.3 million in Q4 2022.

2023 年第四季的毛利為 3,040 萬美元，而 2022 年第四季的毛利為 1,330 萬美元。

The increase was due to similar dynamics as seen for the full year, our SG&A expenses increased to $29.4 million for fiscal year 2023 versus $22.8 million in 2022.

這一增長是由於與全年類似的動態所致，我們 2023 財年的 SG&A 費用增至 2,940 萬美元，而 2022 年為 2,280 萬美元。

SG&A in the fourth quarter increased to approximately $7.4 million versus $5.1 million in the fourth quarter of 2022.

第四季的銷售管理及行政費用 (SG&A) 增至約 740 萬美元，而 2022 年第四季為 510 萬美元。

In each case, the increase was primarily due to higher incentive compensation related to the Company's performance.

在每種情況下，增加的主要原因是與公司績效相關的激勵薪酬增加。

Interest and other income grew by approximately 21% 2023 totaling $15.7 million compared with approximately $13 million for fiscal 2022.

利息和其他收入 2023 年增長約 21%，總計 1,570 萬美元，而 2022 財年約為 1,300 萬美元。

We reported interest and other income for the fourth quarter of approximately $4.8 million versus $2.6 million for the same period in 2022.

我們報告第四季的利息和其他收入約為 480 萬美元，而 2022 年同期為 260 萬美元。

Income before taxes and noncontrolling interest for 2023 was approximately $98.5 million, a significant increase from $47.5 million in 2022.

2023 年稅前及非控制權益前收入約為 9,850 萬美元，較 2022 年的 4,750 萬美元大幅增加。

During the fourth quarter, we reported approximately $32.5 million in this metric versus $13.3 million during the same period during the previous year.

在第四季度，我們報告的這項指標約為 3,250 萬美元，而去年同期為 1,330 萬美元。

As Stuart mentioned, at the beginning of the call, 2023 was the second best year from a net income perspective in our company's history.

正如 Stuart 在電話會議開始時提到的那樣，從淨利潤角度來看，2023 年是我們公司歷史上第二好的一年。

Net income attributable to REX shareholders for the year was $60.9 million compared to $27.7 million in fiscal year 2022.

今年歸屬於 REX 股東的淨利潤為 6,090 萬美元，而 2022 財年為 2,770 萬美元。

For the fourth quarter 2023.

2023 年第四季。

This equaled $20.6 million compared with $8.2 million for the fourth quarter 2022 on a per share dilutive basis for the full year, this amounts to $3.47 per share of net income in 2023 compared to $1.57 per share in 2022.

以全年每股攤薄計算，這相當於 2,060 萬美元，而 2022 年第四季為 820 萬美元，相當於 2023 年每股淨利潤 3.47 美元，而 2022 年每股淨利潤為 1.57 美元。

And for the fourth quarter 2023 diluted net income per share was $1.16 per share compared to $0.47 per share for the same period in the previous year.

2023 年第四季攤薄後每股淨利為 1.16 美元，而去年同期為 0.47 美元。

We ended the year with total cash, cash equivalents and short-term investments of $378.7 million compared with $280.9 million for fiscal year end 2022.

截至 2022 財年末，我們的現金、現金等價物及短期投資總額為 3.787 億美元，而 2022 財年末為 2.809 億美元。

Cash build during 2023, it was reflective of our conservative fiscal approach, anticipated capital expenditures related to the water Energy's CCS project in ethanol production capacity expansion at our Gibson City location.

2023 年期間的現金累積反映了我們保守的財政方法以及與水能源 CCS 項目相關的預期資本支出，該項目旨在擴大吉布森市的乙醇產能。

Also related to this conservative approach, Rex American ended the year without any bank debt.

也與這種保守的做法相關，雷克斯美國公司年底沒有任何銀行債務。

I'd now like to turn the call back to Zafar.

我現在想把電話轉回札法爾。

Thanks, Doug.

謝謝，道格。

I would now like to give some color around how we see ethanol market progressing through the remainder of calendar 2024.

現在我想就我們對 2024 年剩餘時間乙醇市場進展的看法提供一些說明。

For looking at the ethanol and co-product market, we anticipate continued changes in commodity markets.

對於乙醇和聯產品市場，我們預期商品市場將持續變化。

However, as we have seen over the years our incredible capable team that is in the market every day, watching these markets, adjusting our positions and looking at our forward contracting strategy, put us in a better position, no matter what the market conditions as far as the market for our most important input, coal and natural gas.

然而，正如我們多年來所看到的，我們令人難以置信的有能力的團隊每天都在市場上，觀察這些市場，調整我們的頭寸並研究我們的遠期合約策略，使我們處於更好的位置，無論市場狀況如何至於我們最重要的投入品——煤炭和天然氣——的市場。

So far during calendar year 2024, we are seeing pricing run more in our favor than a year ago.

2024 年到目前為止，我們發現定價比一年前更有利於我們。

It has resulted in ethanol profitability currently running slightly ahead of the same period a year ago.

這導致目前乙醇獲利能力略高於去年同期。

In closing, I want to thank our very dedicated employees for their hard work and innovation have driven our success.

最後，我要感謝我們非常敬業的員工，他們的辛勤工作和創新推動了我們的成功。

We are excited about the future and confident in our strategy to deliver value to our shareholders.

我們對未來感到興奮，並對我們為股東創造價值的策略充滿信心。

Thank you for your continued support.

感謝您一如既往的支持。

So I would like to open these things up for questions.

所以我想把這些問題開放給大家。

Operator?

操作員？

Thank you.

謝謝。

(Operator Instructions) Jordan Levy, Truist Securities.

（操作員指示）Jordan Levy，Truist 證券公司。

Hi, guys.

嗨，大家好。

It's Henry on for Jordan here.

亨利替補喬丹登場。

Congratulations.

恭喜。

Firstly, on another excellent quarter.

首先，又是一個出色的季度。

Just to start with on the regulatory side, are there any incremental incremental updates or color you can give us on the discussions with the EPA and the Illinois Commerce Commission so far.

首先從監管方面開始，您可以向我們提供迄今為止與美國環保局和伊利諾伊州商業委員會討論的任何增量更新或顏色嗎？

So let me give you some some information where we stand today.

因此，讓我向您提供一些我們今天的情況的資訊。

Our carbon facility is under construction, as you know, is expected to complete by the end of July or beginning of August, permitting process for the plastics pharma is under review by the EPA, which is because we have known knowledge when they will approve, but it is under technical review.

如您所知，我們的碳設施正在建設中，預計將於 7​​ 月底或 8 月初完工，塑膠製藥公司的許可程序正在接受 EPA 的審查，這是因為我們知道他們何時會批准，但正在接受技術審查。

We also file for the pipeline.

我們也申請了管道。

So if the ICSC and we are waiting for that process is in, we are going through the process and expected to complete by the end of July, early August, and we also able to have able to get a well number one and number two.

因此，如果 ICSC 和我們正在等待流程的啟動，我們正在完成流程，預計將在 7 月底、8 月初完成，我們也能夠獲得一號井和二號井。

And number three, we all that easement is signed for the all that to the well, we also have 91% of the floor area at this time for the Well number one, we also have approximately 62% of the easements for the six mile pipeline, which will take us to well number one and soon is completed.

第三，我們為這口井簽署了地役權，目前我們還擁有一號井 91% 的建築面積，我們還擁有六英里管道約 62% 的地役權，這將帶我們到第一口井，很快就會完成。

And we also have new facilities time agreement with Summit last year.

去年我們也與 Summit 達成了新的設施時間協議。

It's also some it is also improving being able to successfully able to get some legislation passed in U.S. and U.K.

它也正在改進，能夠成功地在美國和英國通過一些立法。

So as far as basically coming back to Jordan again, that certainly we did this process is a long process and it's a government agencies, and we have no knowledge when when and when they will approve that.

因此，就基本上再次回到約旦而言，我們所做的這個過程當然是一個漫長的過程，而且這是一個政府機構，我們不知道他們何時何地會批准這一點。

Henry, I wanted to add that Henry, when I add that 91% is an incredible number to get that much a lot of people, a lot of virtually everyone else has less in that narrow holes and they tried for things like eminent domain and stuff like that.

亨利，我想補充一點，亨利，當我補充說91％ 是一個令人難以置信的數字，讓這麼多人，幾乎其他人在這個狹窄的洞裡有更少的人，他們嘗試了諸如徵用權之類的東西像那樣。

It's our hope that we won't have to do anything like that.

我們希望我們不必做這樣的事情。

We have an incredible amount of support from our farmer partners to get this project done.

為了完成這個項目，我們得到了農民合作夥伴的大力支持。

And that then and that's we think something that separates us from a lot of the other people that might be a little more troubled at Knott's.

這就是我們認為的一些東西，使我們與許多其他在諾特氏可能遇到更多麻煩的人區分開來。

Thank you, guys, for all that color.

謝謝你們，夥計們，謝謝你們所有的顏色。

Just a quick follow-up around capital allocation.

只是圍繞資本配置進行快速跟進。

And then you mentioned in the call on you're not you haven't seen anything in the ethanol ethanol asset space.

然後你在電話會議中提到你在乙醇資產領域中沒有看到任何東西。

That's, I guess, worthy of purchasing at this point.

我想，目前來說，這是值得購買的。

I'm just wondering if there's in terms of thinking of use of cash outside of your current One Earth and carbon capture projects on where we are.

我只是想知道是否考慮在當前的同一個地球和碳捕獲項目之外使用現金。

I think what you guys are thinking about or looking at for uses.

我想你們正在考慮或正在尋找用途。

That's that's a good question.

這是一個好問題。

We have looked at a couple other at some plants.

我們也考察了一些工廠的其他一些。

And so far to date, we haven't found anything that we're so focused at the moment on this carbon capture, but there could be a lot of uses for our capital, for example.

到目前為止，我們還沒有發現任何我們目前如此關注碳捕獲的東西，但例如，我們的資本可能有很多用途。

I mean, this is why in the future way, way in the future and just just talk at this point, but let's say jet fuel, let's say of a CIFCO. two can be minute.

我的意思是，這就是為什麼在未來的方式，在未來的方式，只是在這一點上談論，但讓我們說噴氣燃料，讓我們說 CIFCO。兩個可以是分鐘。

There's a number of power plants nearby that that emit a lot of CO2.

附近有許多發電廠，排放大量二氧化碳。

We have a car, but we have carbon capture holes.

我們有汽車，但我們有碳捕獲孔。

We're getting permitted.

我們正在獲得許可。

Now there's chances to be partners with them, cement plants and there.

現在有機會與他們、水泥廠等成為合作夥伴。

We also, as you probably know, when our stock drops, we're prolific buyback so so there's always the opportunity to use the cash for that.

正如您可能知道的那樣，當我們的股票下跌時，我們會進行大量回購，因此總有機會使用現金。

So we're excited about the future after carbon capture our combined or our carbon capture, combined with other people's carbon capture.

因此，我們對我們的碳捕獲組合或我們的碳捕獲與其他人的碳捕獲相結合後的未來感到興奮。

There's so many things we can do in the future.

未來我們可以做的事情還有很多。

Yes.

是的。

And also, as you know, that we're going to have approximately $165 million to $175 million is for CCS and an expansion of the plant, which is expected to complete by the end of this year or early 2025.

此外，如您所知，我們將投入約 1.65 億至 1.75 億美元用於 CCS 和工廠擴建，預計將於今年年底或 2025 年初完成。

So I think that will be also be taking a lot of cash which we have at this stage.

因此，我認為這也將佔用我們現階段擁有的大量現金。

And then it still leaves us to fund our future expansion or future purchase of any other properties available as I would mention.

然後，我們仍然可以為未來的擴張或未來購買我要提到的任何其他可用房產提供資金。

Thank you.

謝謝。

(Operator Instructions) Pavel Molchanov, Raymond James.

（操作員說明）Pavel Molchanov、Raymond James。

Thanks for taking the question.

感謝您提出問題。

Good to connect as always, I've kind of posed this question before, but I get your latest thoughts on that.

一如既往地很高興與您聯繫，我以前曾提出過這個問題，但我了解您對此的最新想法。

You're extremely cash-rich to state the obvious for a company of your size and there are ethanol assets that periodically come up for sale, maybe maybe not as good as yours, but they are for sale or is there any opportunity to add to your existing production asset base?

對於像您這樣規模的公司來說，您的現金非常豐富，這是顯而易見的，並且定期出售乙醇資產，也許不如您的好，但它們正在出售，或者是否有機會添加到您現有的生產資產基礎？

We are prepared as well, but we're always looking we are looking, but at this time we have nothing imminent.

我們也做好了準備，但我們一直在尋找，但目前我們沒有任何迫在眉睫的事情。

What we would ideally want, which is hard to find this large Fagen ICM plant that's near Illinois or near somewhere at some places near carbon capture because we have the potential at least for the next few years to make as much in carbon capture on these plants as we can in the ethanol business.

我們理想中想要的是，很難找到位於伊利諾伊州附近或靠近碳捕獲的某些地方的大型 Fagen ICM 工廠，因為我們至少在未來幾年有潛力在這些工廠上進行盡可能多的碳捕獲正如我們在乙醇業務中所做的那樣。

So that would be ideal.

所以這將是理想的。

We would look at something that wasn't ideal if it was a good plant would have to be really good plant that has good corn supply.

我們會考慮一些不理想的植物，如果它是一種好的植物，那麼它必須是具有良好玉米供應的真正好的植物。

That's that that's relatively no, preferably Fagen ICM.

那就是那個比較不行，最好是Fagen ICM。

We're pretty we're pretty stringent on what we look for and we have things so much plan right now that if we never found one with carbon capture, we have great plans for the future.

我們對我們的目標非常嚴格，我們現在有很多計劃，即使我們從未找到一個具有碳捕獲功能的國家，我們也會為未來制定宏偉的計劃。

And I add to that is also per well.

我補充說，這也是每口井的。

We are organically also growing.

我們也在有機地成長。

So as you can see that originally these plants were 100 million gallon than we expanded 125 million each then 150 million.

正如您所看到的，最初這些工廠的產量為 1 億加侖，後來我們分別擴建了 1.25 億加侖，然後擴大到了 1.5 億加侖。

And now we are expanding this one, our synergy plans to 200 million gallons.

現在我們正在擴大這一規模，我們的協同效應計劃達到 2 億加侖。

So I think we certainly is we believe that our plants at the best location possible CCS project and they have produced much better than any other location.

所以我認為我們當然相信我們的工廠位於 CCS 項目可能的最佳地點，並且它們的產量比任何其他地點都要好得多。

I think that look at another location.

我認為看看另一個位置。

So we are trying to make sure that we reinvest also in our locations and grow organically before we also tried to buy something which may not fit our criteria.

因此，在我們嘗試購買可能不符合我們標準的東西之前，我們正在努力確保我們對我們的地點進行再投資並實現有機成長。

And to be honest, that's been less expensive than some of the transactions that have taken place, which went lesser plants have changed hands.

說實話，這比一些已經發生的交易要便宜，這些交易的工廠易手程度較小。

Okay.

好的。

So from earlier this year, the first from ethanol to are out I guess alcohol to jet facility in the world open up in Georgia, of course, is the Lenzie jet project.

所以從今年早些時候開始，我猜世界上第一個從乙醇到噴射機的設施在喬治亞州開放，當然是倫齊噴射機項目。

And I'm curious if at any of your existing ethanol sites or potentially at some future M&A opportunity you would be interested in running this this kind of conversion project to produce SaaS?

我很好奇，在您現有的任何乙醇工廠或潛在的未來併購機會中，您是否有興趣運行這種轉換項目來生產 SaaS？

Yes, Pavel and I will add that have conference earlier this week actually last Thursday and Friday, as you know, hearing about some of the dynamics and projection for this market, approximately, there was there was expected to be approximately -- 30 billion gallons market is there.

是的，帕維爾和我要補充的是，本週早些時候實際上在上週四和週五舉行了會議，如您所知，聽取了該市場的一些動態和預測，預計大約有300 億加侖市場就在那裡。

And the one thing is very consistent.

有一點是非常一致的。

There is no different kind of aviation fuel aviation fuel is only one kind of aviation fuel, which everyone use that and there is a co-sponsor nearly 7 million barrels a day of demand.

航空燃料沒有什麼不同，航空燃料只是一種航空燃料，每個人都使用它，並且共同發起了每天近700萬桶的需求。

There was American Airlines, United Airlines and Southwest Airlines was also here.

美國航空、聯合航空、西南航空也在這裡。

So we are currently looking into how Rex could participate and what and what may make the most sense on this part.

因此，我們目前正在研究 Rex 如何參與以及這部分中什麼最有意義。

However, right now, we really are focused on our first getting the one-off plant up and running, which means on permit, permitted, build and are and in operation we are looking at option was CCS behind sequestration of our own carbon, but Arkansas concentrating on making our first, an ethanol plant successful and fast and most importantly see at CCS project successful at this time.

然而，現在，我們真正專注於我們的第一個一次性工廠的建立和運行，這意味著在許可、許可、建造和運行中，我們正在考慮的選項是 CCS 來封存我們自己的碳，但阿肯色州致力於使我們的第一個乙醇工廠快速成功，最重要的是CCS 計畫目前取得了成功。

But there is great market there is in the future that will be the right thing to do.

但未來有龐大的市場，這將是正確的做法。

Maybe we'll pivot in maybe two or three or four years from now.

也許我們會在兩年、三年或四年後進行調整。

But at this time, there is only when I learned from that, as there was a conflict.

但此時，只有當我從中學到教訓時，才出現衝突。

There's only 50 million gallons are produced and there is not enough market, but is expected to grow by 2032 close approximately 30 billion gallons.

目前僅生產 5,000 萬加侖，沒有足夠的市場，但預計到 2032 年將成長到接近 300 億加侖。

So yes, there is a great future, but at this time, there isn't really enough market demand.

所以，是的，有一個美好的未來，但目前還沒有真正足夠的市場需求。

So one of the key one to one of the keys to our success to value has not been to be the pioneer, but they have the best technology and wait for the best technology and see who has the best technology out there.

因此，我們成功實現價值的關鍵之一並不是成為先驅，而是他們擁有最好的技術，並等待最好的技術，看看誰擁有最好的技術。

So we are we're not jumping into it, will we'll let someone else business and be the pioneer and take the aerospace, but will come in as soon as someone shows that this will at least look at it very seriously.

因此，我們不會跳入其中，我們會讓其他人做生意，成為先鋒並涉足航空航太領域，但一旦有人表明這至少會非常認真地對待它，我們就會介入。

As soon as someone shows it, this can be a profitable business.

一旦有人展示出來，這就能成為一門有利可圖的生意。

Thanks very much.

非常感謝。

Any other questions?

還有其他問題嗎？

(Operator Instructions) [BJ Cook] Singular Research.

（操作員說明）[BJ Cook] 奇異研究。

Hey, guys, thanks for taking my call.

嘿，夥計們，感謝您接聽我的電話。

On Just quick, is there anything new in for update on the spin-off of capacity expansion in Gibson City.

快點，關於吉布森市產能擴張的分拆，有什麼新的更新嗎？

I'm sorry, I had been to carrier question.

抱歉，我已經向運營商詢問過。

Could you repeat that again, please?

請您再說一次好嗎？

Yes, sorry.

是的，抱歉。

Do you have any new information or update on the capacity expansion at Gibson City?

您有關於吉布森市產能擴張的任何新資訊或更新嗎？

I think as I mentioned previously, that though we are expanding that plant, the ethanol facility is going to be a 200 million gallon and the construction is in progress and for the ethanol facility, we expect that will be completed before the end of this year.

我認為正如我之前提到的，雖然我們正在擴建該工廠，但乙醇設施的容量將達到 2 億加侖，並且乙醇設施的建設正在進行中，我們預計將在今年年底前完工。

And then CCS project is also the construction of the building is compressor facility, which building is almost complete and equipment is arriving every single day.

然後CCS計畫也在興建壓縮機設施大樓，該大樓已基本完工，設備每天都在抵達。

And we expect that by the end of July or early August, CCS facility will be completed, but we still have to wait, but the pipeline for the pipeline permits and and the APA classics, but before we start any and any kind of carbon sequestration.

我們預計到 7 月底或 8 月初，CCS 設施將完工，但我們仍然需要等待，但管道許可和 APA 經典，但在我們開始任何類型的碳封存之前。

So those are the main thing that we are waiting for the permits.

這些是我們等待許可證的主要內容。

But as far as concern about the facility is going very well.

但就設施而言，進展順利。

This is Doug let me add when we expand that facility, the construction will be to take us to 200 million gallons.

這是道格，我補充說，當我們擴建該設施時，建造後的產量將達到 2 億加侖。

Yes, the initial plans are to run at 175 million gallons.

是的，最初的計劃是運行 1.75 億加侖。

And once we achieve that and get EPA further approval that we can go to 200 million gallons.

一旦我們實現這一目標並獲得 EPA 的進一步批准，我們的產量就可以達到 2 億加侖。

And as we think how are you looking at a capacity utilization is kind of a moving target, I get it.

當我們認為你如何看待產能利用率是一個移動目標時，我明白了。

But for the rand year on guys expected, I've run it out.

但對於人們預期的蘭特年，我已經用完了。

I thought I would provide a question what's capacity utilization.

我想我應該提出一個問題，什麼是容量利用率。

We will still mean that we get a decent corn crop, we plan on running pretty much full capacity.

我們仍然意味著我們獲得了不錯的玉米產量，我們計劃幾乎滿載運行。

The only time we've ever cut that.

這是我們唯一一次剪掉它。

And would there be times when won't cut back for maintenance.

有時會不會削減維護費用。

There will be times when we cut back just because of because we're doing with the CCS, what we can't quite run as much as we may as we usually do but basically it will be full capacity.

有時我們會削減開支，因為我們正在使用CCS，我們無法像平常那樣運行那麼多，但基本上它會滿載。

We'll go we'll go out and we always go out when it's a profitable market of that.

我們會去，我們會出去，當市場有利可圖時，我們總是會出去。

Yes, we have not really a slowdown at least in our slowdown is processes sometime.

是的，我們並沒有真正放緩，至少在我們的放緩過程中是這樣的。

It's, you know, a maintenance on expected, some kind of a shutdown.

你知道，這是一次預期的維護，某種形式的關閉。

So we tried to use the full capacity practically possible yet because we are in the basically in Illinois in the Corn Belt area and South Dakota clubs was great last year and expect it to be this year at the same.

因此，我們試圖充分利用實際可能的能力，因為我們基本上位於伊利諾伊州的玉米帶地區，南達科他州俱樂部去年表現出色，預計今年也將如此。

So we have no plan to really slow down at this stage.

因此，我們現階段沒有真正放慢速度的計畫。

Okay thank you very much.

好的，非常感謝。

Thank you.

謝謝。

And we have reached the end of the question-and-answer session, and I'll now turn the call back over to Stuart Rose for closing.

我們的問答環節已經結束，現在我將把電話轉回斯圖爾特·羅斯以結束。

Okay well, I'd like to thank everyone for listening.

好的，我要感謝大家的聆聽。

We as you have heard, we have great plants, terrific plants, great and great growth prospects and the key to everything is the execution of our employees.

正如您所聽到的，我們擁有偉大的工廠，了不起的工廠，巨大的成長前景，而一切的關鍵是我們員工的執行力。

We feel we have the best employees in the industry, the best people working for us.

我們認為我們擁有業內最優秀的員工，最優秀的人才為我們工作。

We think that's what really makes a difference between REX and everyone else in our industry.

我們認為這才是 REX 與我們行業中其他公司的真正區別所在。

And we just want to thank them.

我們只想感謝他們。

And we also want to thank you for listening to the call.

我們也要感謝您收聽電話。

We appreciate it very much talk to you next quarter, but and this concludes today's conference and you may disconnect your lines at this time.

我們非常感謝下個季度與您交談，但是今天的會議到此結束，您此時可以斷開線路。

Thank you for your participation.

感謝您的參與。