ENGLEWOOD, Colo. – Gevo, Inc. (NASDAQ:GEVO) announced key initiatives and targets for 2016 following the settlement with Butamax in August. The company will be hosting a webcast today at 10:30 a.m. EST to discuss the details, led by Chief Executive Officer Dr. Patrick Gruber and Chief Financial Officer Mike Willis.
"The settlement with Butamax eliminated a significant cost and uncertainty in our business. We are now in a position to devote the majority of our resources to the commercialization of isobutanol, now that this distraction is behind us," said Gruber.
Operational and financial targets for 2016 include:
- Increase isobutanol production at Luverne to a range of 750,000 to 1 million gallons in 2016, up 7-10 times from expected 2015 production levels;
- Decrease the variable cost of producing isobutanol at Luverne to a range of $3.00-$3.50/gallon*, a decrease of approximately 50 percent from the current cost of production, enabling isobutanol to be produced at a positive contribution margin, based on an expected average selling price for isobutanol of between $3.50-$4.50/gallon; and
- Increase sales of isobutanol into core markets such as the alcohol-to-jet (ATJ), marina, off-road, isooctane and solvents markets Achieve an average quarterly corporate-wide EBITDA burn rate (excluding stock-based compensation) of $3.5-$4.5 million per quarter, versus a comparable quarterly burn rate of $6.0 million realized over the first half of 2015.
To participate in the conference call, please dial 1-800-708-4540 (inside the U.S.) or 1-847-619-6397 (outside the U.S.) and reference the pass code 40805971. The presentation will be available via a live webcast. A replay of the call will become available two hours after the conference call ends and will be accessible until 11:59 pm EST on September 25. To access the replay, please dial 1-888-843-7419 (inside the U.S.) or 1-630-652-3042 (outside the U.S) and reference the pass code 40805971#. The archived webcast will be available for 30 days in the Investor Relations section of Gevo's website at www.gevo.com.
* Note - Assumes corn price of $3.65 per bushel and nets the value of the isobutanol distiller's grains (the "iDGs")