Alto’s Magic Valley Facility Production Rate Consistently Achieving Full Capacity

Rhea-AI Summary

Alto Ingredients (NASDAQ: ALTO) has provided updates on its Magic Valley facility in Idaho, where it has installed Harvesting Technology's patented system to capture high protein and corn oil products. The facility is now consistently achieving full production capacity for renewable fuel while operating the new technology systems. Key metrics include:

- Protein content at 50% or greater
- Improved protein production yields of over three pounds per bushel
- Increasing corn oil yields

CEO Bryon McGregor expressed pride in the team's efforts to integrate design changes and achieve these production milestones. The company expects the improved output to contribute to Magic Valley's bottom line results and anticipates sales from associated products to ramp up in Q4 2024.

Positive

• Achieving full production capacity for renewable fuel at Magic Valley facility
• Protein content reaching 50% or greater
• Improved protein production yields of over three pounds per bushel
• Increasing corn oil yields
• Diversification of product mix with higher margin offerings
• Expected contribution to Magic Valley's bottom line results
• Anticipated ramp-up of sales from new high protein products in Q4 2024

Negative

• None.

Insights

Financial Analyst

The update from Alto Ingredients (ALTO) on its Magic Valley facility is moderately positive for investors. The company reports achieving full production capacity for renewable fuel while simultaneously operating new high-protein and corn oil extraction systems. This suggests improved operational efficiency and potential for increased revenue streams.

Key points to consider:

• Protein content at 50% or greater, with yields over 3 pounds per bushel, indicates a higher-margin product offering.
• Improved corn oil yields, with further increases expected, could contribute to additional revenue.
• The company anticipates sales from these new products to ramp up in Q4 2024, potentially impacting financial results positively.

However, investors should note that while these developments are promising, the actual financial impact remains to be seen in upcoming earnings reports. The market cap of $124 million suggests ALTO is a small-cap stock, which can be more volatile. Overall, this operational update indicates progress in ALTO's strategy to diversify and enhance its product mix, which could lead to improved profitability if market demand aligns with their production capabilities.

Agricultural Commodities Expert

Alto Ingredients' achievement at the Magic Valley facility represents a significant advancement in biorefining efficiency. The ability to maintain full renewable fuel production while simultaneously extracting high-protein products and corn oil is a testament to the effectiveness of Harvesting Technology's patented system.

The protein content of 50% or greater is particularly noteworthy. This high concentration positions ALTO's product competitively in the specialty feed market, potentially commanding premium prices. The yield of over 3 pounds of protein per bushel indicates efficient extraction, maximizing value from each unit of corn processed.

Improved corn oil yields further enhance the facility's overall efficiency. Corn oil is a valuable byproduct with applications in both food and fuel industries. As ALTO continues to optimize its processes, we can expect even better utilization of raw materials, potentially leading to improved margins across their product portfolio.

This multi-product approach aligns with industry trends towards biorefinery optimization and could set a benchmark for the sector if financial results prove the model's viability.

PEKIN, Ill., Oct. 15, 2024 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuel and essential ingredients, provided updates on its Magic Valley facility in Idaho where it has installed Harvesting Technology’s patented system to capture its high protein and corn oil products.

For October to date, the new equipment and system modifications to improve capacity at the Magic Valley facility are delivering the following metrics:

• Average renewable fuel production rates at full production capacity while operating the high protein and corn oil technology systems;
  
• Protein content at 50% or greater, with improved protein production yields of over three pounds per bushel, diversifying the facility’s product mix with a higher margin offering; and
• Corn oil yields are improving and are expected to increase further as Alto continues aligning systems and operations.

Alto Ingredients CEO Bryon McGregor said, “We are proud of our team’s hard work and tenacity in integrating the necessary design changes to achieve these production milestones. We expect our improved output to contribute to Magic Valley’s bottom line results. We have begun marketing our new high protein products and anticipate sales from associated products to ramp up in the fourth quarter of 2024.”

About Alto Ingredients, Inc.
Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of specialty alcohols, renewable fuel and essential ingredients. Leveraging the unique qualities of its facilities, the company serves customers in a wide range of consumer and commercial products in the Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. For more information, please visit www.altoingredients.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning renewable fuel production rates and potential increases in sales of, or product margins or profits deriving from, corn oil and high protein products at Alto Ingredients’ Magic Valley facility; and Alto Ingredients’ other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and plans. These factors include, among others, Alto Ingredients’ ability to continue to achieve current renewable fuel production rates at its Magic Valley facility into the future and to achieve anticipated higher sales, margins and profits from its corn oil and high protein products at the Magic Valley facility in the fourth quarter of 2024; adverse economic and market conditions, including for renewable fuels, specialty alcohols and essential ingredients, including high protein and corn oil products; export conditions and international demand for the company’s products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; adverse impacts of inflation and supply chain constraints. These factors also include, among others, the inherent uncertainty associated with financial and other projections and the operation of new large-scale capital projects; the anticipated size of the markets and continued demand for Alto Ingredients’ products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the alcohol production, marketing and distribution industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients’ facilities, products and/or businesses; changes in laws, regulations and governmental policies; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 8, 2024.

Media and Company IR Contact:                 
Michael Kramer, Alto Ingredients, Inc., 916-403-2755
Investorrelations@altoingredients.com

IR Agency Contact:
Kirsten Chapman, LHA Investor Relations, 415-433-3777
Investorrelations@altoingredients.com

FAQ

What production milestones has Alto Ingredients (ALTO) achieved at its Magic Valley facility?

Alto Ingredients has achieved full production capacity for renewable fuel at its Magic Valley facility while operating new high protein and corn oil technology systems. The facility is producing protein content at 50% or greater, with improved yields of over three pounds per bushel, and increasing corn oil yields.

How is Alto Ingredients (ALTO) diversifying its product mix at the Magic Valley facility?

Alto Ingredients is diversifying its product mix at the Magic Valley facility by producing high protein products with content at 50% or greater, offering a higher margin product. The company has also improved protein production yields to over three pounds per bushel and is increasing corn oil yields.

When does Alto Ingredients (ALTO) expect sales from new high protein products to ramp up?

Alto Ingredients anticipates sales from its new high protein products and associated products to ramp up in the fourth quarter of 2024.

What technology has Alto Ingredients (ALTO) installed at its Magic Valley facility?

Alto Ingredients has installed Harvesting Technology's patented system at its Magic Valley facility to capture high protein and corn oil products.