Aemetis Inc (NASDAQ: AMTX) is having an overwhelmingly strong start in the pre-market hours this morning, and for good reason. The company released news surrounding ethanol and protein yields produced from operation of its Integrated Demonstration Unit. Of course, this led to excitement among investors, sending the stock for the sky. Today, we’ll talk about the news, what we’re seeing from the stock, and what we’ll be watching for with regard to AMTX ahead.
AMTX Announces Yield Update
As mentioned above, Aemetis is having an incredibly strong start to the trading session in the pre-market hours after announcing a yield update. In a press release issued early this morning, the company announced that its subsidiary, Aemetis Advanced Product Keyes, Inc., has received third party validation of ethanol and protein yields from its Integrated Demonstration Unit. In the release, AMTX said that the third party validation came from Leidos Engineering.
In the release, the company reminded investors that it continuously operated its gas fermentation process for over 120 days. This met the requirements for a USDA 9003 Biorefinery Assistance Program guaranteed loan. During this time, the IDU generated a yield of 77 gallons of cellulosic ethanol per ton of biomass. This closely matched the yields that Leidos engineering models predicted. In the release, AMTX said that based on adjusted engineering models and subsequent results from the IDU, Leidos engineers expect commercial yields to run at approximately 96 galls of cellulosic ethanol per ton of biomass at the company’s planned 12 million gallon per year commercial facility in Riverbank, CA. In a statement, Eric McAfee, Chairman and CEO at Aemetis, had the following to offer:
The completion of the IDU project completes a major milestone in the implementation of Aemetis’ plan to construct a commercial scale cellulosic ethanol facility using agricultural waste feedstock… The high yields also confirm the successful integration of technology required for Aemetis to enter the cellulosic ethanol market and meet a key deliverable in securing a $125 million dollar USDA loan guarantee. The cellulosic facility will allow Aemetis to help lead California’s initiatives for a clean energy future.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of Aemetis, the news proved to be overwhelmingly positive. Today’s validation of yields brings the company one step closer to an entrance in the cellulosic ethanol market, potentially unlocking the door to incredible revenues. So, it’s no surprise that the stock is headed up today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:53), AMTX is trading at $1.22 per share after a gain of $0.13 per share or 11.93% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AMTX. In particular, we’re interested in following the company through the construction of and eventual operation at the Riverbank facility. Also, keep in mind that CNA Finance Chief Strategic Analyst, Kenny Soulstring is currently diving into the stock and will be releasing his report soon! Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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