The company made the optimistic announcement after releasing second quarter financial results showing it had a fundraising pot of $ 80.6 million in cash and cash equivalents.
(NASDAQ: GEVO), citing a strong balance sheet and available liquidity, said Tuesday it plans to pay off its $ 12.7 million guaranteed debt balance in full by the end of the year.
The company made the optimistic announcement after releasing second quarter 2020 financial results showing it had a fundraiser of $ 80.6 million in cash and cash equivalents, down from just $ 6.3 million in the quarter. of the previous year.
Additionally, Gevo noted that at the end of last month, it had started production of approximately 50,000 gallons of renewable isobutanol at its production facility in Luverne, Minnesota. Once the renewable isobutanol is produced, Gevo will ship the isobutanol to the South Hampton facility for use in the production of renewable hydrocarbons during the first quarter of 2021.
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Gevo said it plans to produce an additional 50,000 gallons of renewable isobutanol in the second quarter of 2021 for use at the South Hampton facility. It plans to periodically produce renewable isobutanol in this manner until a new, larger hydrocarbon production facility is funded and built.
The company also highlighted another operational breakthrough – a 10-year renewal agreement for the supply of renewable hydrocarbons to Trafigura Trading LLC. With the deal, Gevo said it now has around 48 MGPY (million gallons per year) of direct debit agreements, collectively accounting for around $ 1.5 billion in revenue over the life of the contracts.
For its third quarter, which ended on September 30, Gevo said its revenues were affected by its decision in March to end its production of ethanol and distillery grains at the Luverne plant due to restrictions related to COVID-19 and an unfavorable environment for raw materials.
Revenues totaled $ 200,000 for the quarter compared to $ 6.1 million in the same quarter of 2019. Hydrocarbons revenues decreased year over year to $ 100,000 for the quarter. for $ 600,000.
“With pinned clients and enough money in the bank to complete the engineering and project development work needed to financially close the projects next year, and because we have several interested project capital investors engaged in Detailed due diligence, I think our project finance activity with Citigroup has been going well so far, ”CEO Patrick Gruber said in a statement.
“We continue to work on securing more customer agreements and plan to announce one or more in the coming months. Overall, we are making good progress. We need to keep making progress and stay on track.
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