Company Overview - REX American Resources Corporation (REX) is positioned as an intriguing investment choice within the Biofuels sector due to solid earnings estimate revisions and a favorable Zacks Industry Rank [1][5] - The company has experienced a positive shift in earnings estimates, indicating a more bullish outlook from analysts regarding its short and long-term prospects [3][4] Industry Analysis - The Biofuels industry currently holds a Zacks Industry Rank of 10 out of over 250 industries, suggesting a strong position relative to other sectors [2] - The overall positive trends in the Biofuels segment are likely benefiting multiple securities within the industry, indicating a rising tide effect [2] Earnings Estimates - Over the past month, REX's current quarter earnings estimates have increased from $0.26 per share to $0.34 per share, while current year estimates have risen from $1.34 per share to $1.55 per share [4] - These revisions have contributed to REX earning a Zacks Rank 1 (Strong Buy), highlighting the company's robust position in the market [4]

Financial Data and Key Metrics Changes - The company ended Q4 2024 with $259 million in cash, cash equivalents, and restricted cash [54] - Combined operating revenue and other net income for Q4 was $8.9 million, with a full year total of $32.7 million [54] - The company reported a loss from operations of $19.6 million in the last quarter, with a non-GAAP adjusted EBITDA loss of $11.3 million [55] Business Line Data and Key Metrics Changes - The RNG subsidiary generated $15.8 million in revenue during the year [54] - Gevo North Dakota is producing approximately 67 million gallons of low carbon ethanol annually, including 2 million gallons of ultra-low carbon intensity corn fiber ethanol [58] - The carbon intensity score for the North Dakota plant is about 21 grams of CO2 per megajoule, making it one of the lowest in the industry [59] Market Data and Key Metrics Changes - The company expects to secure a final LCFS carbon intensity score from CARB in Q1 2025, which will unlock more value and better margins for the RNG project [54] - The ATJ60 project in South Dakota has received a conditional commitment for a loan guarantee totaling $1.46 billion, with a total borrowing capacity of $1.63 billion including capitalized interest [12] Company Strategy and Development Direction - The acquisition of Gevo North Dakota is seen as a game changer, allowing the company to monetize carbon abatement and tax credits immediately [10] - The company is focusing on modularization to replicate its ATJ plants, aiming to convert existing ethanol plants into ATJ facilities [36] - Gevo is pursuing partnerships to develop and commercialize its ethanol to jet fuel technology, leveraging its intellectual property and existing relationships [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving positive adjusted EBITDA in 2025, driven by the acquisition of Gevo North Dakota and expected tax credits [55] - The company is closely monitoring the Summit pipeline issue, which could impact project economics [15] - Management highlighted the importance of aligning interests with farmers supplying the ethanol plant, emphasizing regenerative agricultural practices [60] Other Important Information - The company is targeting financial close for its project-level capital raise by the end of 2025, which includes the DOE loan and project-level equity capital raising [21] - The ATJ60 project is expected to create significant regional economic development, generating over $100 million annually once operational [32] Q&A Session Summary Question: What are the equity investor options for the SPV side of the Net Zero One opportunity? - Management indicated a range of potential investors from strategic to specialty funds and classic financial funds [68] Question: Does some of this need to be arranged to close the DOE loan? - Yes, commitments are a prerequisite to reach financial close [69] Question: What are the options to monetize carbon capture expansion at North Dakota? - Options include bundling CCS value with renewable fuel or participating in the carbon dioxide removal credits market [75] Question: How are recent tariff announcements impacting potential costs for the ATJ60 project? - Management stated that recent tariffs are not impacting project costs significantly [82] Question: Can you provide thoughts on leveraging the La Verne facility in the future? - Management mentioned they have ideas for the facility but cannot disclose details yet [91] Question: What has been holding up the DOE process and what is the timeline? - Delays were attributed to environmental requirements and the transition period, with expectations to complete the process within the year [98][101] Question: Who is helping to bank the $800 million equity raise? - The company is working with Guggenheim and Citi for the equity raise [102]

Financial Data and Key Metrics Changes - Revenues for the year ended December 31, 2024, were $268 million, up from $187 million in 2023, with all three segments reporting increases [7] - Cost of goods sold increased from $184.7 million in 2023 to $268.2 million in 2024, aligning with revenue changes [8] - Net loss was $87.5 million for 2024, compared to a net loss of $46.4 million in 2023 [10] Business Line Data and Key Metrics Changes - California ethanol revenue increased by $57.7 million, India biodiesel revenue increased by $15.7 million, and California renewable natural gas revenue increased by $7.6 million [8] - The dairy renewable natural gas segment accounted for $5.4 million of gross profit, primarily from the sale of environmental attributes [9] Market Data and Key Metrics Changes - The price of California LCFS credits increased from $44 to $75 by February 2025, but a recent delay in implementation caused a 30% decrease in prices [15][16] - The expected increase in LCFS credit prices could reach $200 per ton, significantly benefiting Aemetis' biogas and ethanol businesses [17] Company Strategy and Development Direction - Aemetis aims to benefit from supportive public policies for domestic energy producers, focusing on biogas, ethanol, and biodiesel growth [12] - The company is preparing for an IPO of its India biodiesel business, expected in late 2025 or early 2026, contingent on new OMC orders [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the REAP program and expects approvals for new funding soon [45][46] - The company anticipates that the approval of E15 blends will significantly expand the U.S. ethanol market by up to 50% [22][24] Other Important Information - Capital expenditures for carbon intensity reduction projects were $20.3 million in 2024, with ongoing projects aimed at increasing production capacity [10] - Aemetis has received conditional commitments for $75 million in USDA guaranteed loans for biogas digester construction [31] Q&A Session Summary Question: Confidence levels around refinancing given government spending reductions - Management has high confidence in the REAP program and expects approvals soon [45][46] Question: Insight into the OAL's request for revisions and expected delays - The complexity of the LCFS legislation led to the OAL's request for clarifications, causing a potential 120-day delay [57][58] Question: Status of India biodiesel production and OMC tender process - A new tender is expected to be issued soon, with significant inventory available for initial shipments [64][65] Question: Expected spending plans for 2025 amid regulatory turbulence - Aemetis plans a $75 million capital budget supported by USDA loans and grants, with an acceleration in biogas investments [78][79] Question: Impact of E15 approvals on ethanol margins - E15 adoption is expected to be gradual, with significant margin improvements anticipated by 2027 [84][90] Question: Timing of CARB policy implementation - Management estimates a 2-3 month timeline for CARB policy implementation, with no definitive endpoint [92] Question: Drivers of negative EBITDA results in Q4 - Oversupply and high corn prices were significant factors, but operational adjustments are expected to improve Q1 performance [98][100] Question: Expectations on D3 RVO going forward - The EPA's recent actions suggest a lower D3 RIN mandate for 2024, impacting future investment growth [106][112]

Financial Data and Key Metrics Changes - Revenues for the year ended December 31, 2024, were $268 million, up from $187 million in 2023, with all three segments reporting increases [5][6] - Gross loss for 2024 was $580,000 compared to a gross profit of $2 million in 2023 [6][8] - Net loss for 2024 was $87.5 million, compared to a net loss of $46.4 million in 2023 [8] - Cash at the end of Q4 2024 was $898,000, down from $2.7 million on December 31, 2023 [8] Business Line Data and Key Metrics Changes - California ethanol revenue increased by $57.7 million due to full-year operations [5] - India biodiesel revenue increased by $15.7 million from stronger delivery volumes [6] - California renewable natural gas revenue increased by $7.6 million from increased production and sales of credits [6] Market Data and Key Metrics Changes - The price of California LCFS credits increased from $44 to $75 by February 2025, but a recent delay in implementation caused a 30% decrease in prices [12][13] - The expected increase in LCFS credit prices is projected to reach $200 per ton by 2027 [13] Company Strategy and Development Direction - The company aims to benefit from supportive public policies for domestic energy producers, particularly in biogas, ethanol, and biodiesel [10] - Aemetis plans to expand its biogas production capacity to 1,000,000 MMBtu per year by 2026 [22] - The company is focused on the development of sustainable aviation fuel and renewable diesel, with a planned 90 million gallon per year plant [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the REAP financing program despite government spending pauses [32] - The company anticipates a renewed commitment to biodiesel blending in India, which is expected to support investor interest [21] - Management noted that the approval of E15 blends could significantly increase the U.S. ethanol market by up to 50% [19] Other Important Information - Capital expenditures for carbon intensity reduction projects were $20.3 million in 2024 [9] - The company has received $17 million in cash from investment tax credits in early 2025 [16] Q&A Session Summary Question: Confidence levels around REAP financing - Management expressed high confidence in REAP, expecting approvals soon despite a freeze on other grants and loans [32] Question: Insights on OMC tender process - Management indicated that a new tender was issued, with shipments expected in April [46] Question: Expected spending plans for 2025 - Management outlined a $75 million capital budget supported by USDA loans and grants [56] Question: Impact of E15 approvals on ethanol margins - Management expects a gradual increase in margins as more states adopt E15, with significant growth anticipated by 2027 [60] Question: Drivers of negative EBITDA results in Q4 - Oversupply and high corn prices were cited as key factors, with expectations for improved performance in Q1 [70]