Investor Information on Three Segments of the Uranium Energy Sector


Image Credit: Pixabay (Pexels)


Overview of Uranium Stocks Within Three Industry Segments

 

The fundamentals surrounding uranium prices seem to add up to be a perfect storm in
favor
of the once-out-of-favor commodity. On the supply side, production is off because of mine closures, meanwhile, demand is rising as the move toward zero CO2 emissions power generation is getting stronger – and government
support
is stronger than ever.

Portfolio Exposure 

But, uranium is not your typical commodity. Prices are generally a direct negotiation between utilities and producers, and direct investment presents storage
expenses
. Traditionally, investors look toward companies involved in mining uranium to diversify the energy component of their portfolio. As with other natural resources that are pulled from the Earth, there are companies involved in the various stages of mining. These include companies solely involved in Exploration,
Development, or Producing.

Exploration companies are active in exploring properties that they either own or have obtained rights to explore. Producers
are involved in actual mining; they take the mineral from the ground. Developers
take the raw product and make it ready for consumption, in the case of uranium they create something called yellowcake. There is overlap within the industry as some companies are vertically integrated.

All three of these types usually benefit when the price of U3O8 rises. The greater risk/reward for investors is often found on the exploration side and the lowest risk/return is more often found among production companies. Of course, as with any comparison, many factors are involved to determine risk factors. There are also companies that are involved in two or more of these activities.

Companies and Involvement

It’s helpful when evaluating any mining-related company, which activities they are involved in. With this in mind, the list below may be helpful in sorting them out. We also suggest you attend the free online uranium
investor forum
available here on Channelchek on August 31. A number of the companies listed below will be discussing their activities and prospects with the Senior Energy Analyst from Noble Capital Markets.

An asterisk (*) in the description indicates that the
company is a hybrid that is active in more than one related activity.

Exploration

Azincourt Energy Corp. (AZZURF) is a Canadian-based exploration stage company. It is engaged in the acquisition, exploration, and development of mineral properties. The company’s two uranium projects include Escalera-Lituania-Condorlit Projects and East Preston Uranium Project. The current market cap is $12.35 million.

Blue Sky Uranium Corp. (BKUCF) is a junior mineral exploration company based in Canada. The company focuses on uranium exploration projects in southern Argentina. It owns an interest in various exploration properties. The current market cap is $21.54 million.

Peninsula Energy Ltd. (PENMF) is a uranium mining and development company. The company’s project includes Lance ISR Uranium Projects located on the northeast flank of the Powder River Basin in Wyoming and Karoo Uranium Projects in South Africa. *It has three reportable operating segments, Lance uranium projects, Wyoming USA; Karoo uranium projects, South Africa; and Corporate/Other. The current market cap is $90.14 million.

Standard Uranium Ltd. (STTDF)  is a Canadian uranium exploration company focused on its Davidson River flagship project in the Southwest Athabasca Uranium District.

 

Development

GoviEx Uranium Inc. (GVXXF) is a Canada-based company involved in industrial metals and mining business sector. The company is focused on evaluation and development of uranium properties located in the Republic of Niger. *It operates through Exploration of Mineral Properties in segment. The current market cap is $85.13 million.

enCore Energy Corp. (ENCUF) is a developer-focused on becoming a domestic United States uranium producer. With significant existing resources in the southwest United States and licensed uranium production facilities in Texas, enCore holds the largest uranium position in the Grants Mineral Belt and licensed processing capacity to respond quickly to market opportunities. The current market cap is $174.04 million.

 

Production  

Energy Fuels (UUUU) is the largest uranium producer in the U.S. and holds more production capacity and uranium resources than any other U.S. producer. The current market cap is $658.65 million.

 

 

Take-Away

As with investing in any sector, knowing the various segments in the space allows for better filtering for “watch” lists, and eventual positions. The attention now being paid to uranium is coming from many different areas. Much of the globe has as its goal to reduce fossil fuel use. It is not expected that wind and solar alone will allow for an uninterrupted supply of power at current usage rates. Power usage is expected to trend upwards.

Registering for the no-cost Noble Capital Markets Uranium Power Players Investor Forum will allow insights into specific companies within the segments exploration, development, and mining companies. This is the online event allows attendees to ask questions of management if they choose.

 

Suggested Reading



Why Uranium Prices Have Been Rising



The Increasing Popularity of Uranium Investments





Can Mining Be Green and Sustainable?



How Does Uranium Fit Into the ESG Landscape?

 

Sources:

Channelchek.com

 

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Release – Energy Services of America Corporation Appoints Brian Pratt to the Companys Board


Energy Services of America Corporation Appoints Brian Pratt to the Company’s Board

 

Energy Services Of America Corp (ESOA) filed Form 8-K with the following information:

On August 18, 2021, the Board of Directors of Energy Services of America Corporation (the “Company”) appointed Brian Pratt to the Company’s Board effective immediately. The Board of Directors of the Company will not appoint Mr. Pratt to any committees of the Company at this time.

Mr. Pratt has over 35 years of hands-on operations and management experience in the construction industry. From 1983 through 2015, he served as the President, Chief Executive Officer and Chairman of the Board of Primoris Services Corp. and its predecessor entity, ARB, Inc. Mr. Pratt served as Chairman of Primoris Services Corp. from 2008 until 2019 and as a Director until February 2020.

About 

Energy Services Of America

Energy Services of America Corporation is engaged in providing contracting services for energy-related companies. The company is primarily engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. It services the gas, petroleum, power, chemical, and automotive industries and does incidental work such as water and sewer projects. Energy Service’s other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services, and other services related to pipeline construction.

Source: SEC

Energy Services of America Corporation Appoints Brian Pratt to the Company’s Board


Energy Services of America Corporation Appoints Brian Pratt to the Company’s Board

 

Energy Services Of America Corp (ESOA) filed Form 8-K with the following information:

On August 18, 2021, the Board of Directors of Energy Services of America Corporation (the “Company”) appointed Brian Pratt to the Company’s Board effective immediately. The Board of Directors of the Company will not appoint Mr. Pratt to any committees of the Company at this time.

Mr. Pratt has over 35 years of hands-on operations and management experience in the construction industry. From 1983 through 2015, he served as the President, Chief Executive Officer and Chairman of the Board of Primoris Services Corp. and its predecessor entity, ARB, Inc. Mr. Pratt served as Chairman of Primoris Services Corp. from 2008 until 2019 and as a Director until February 2020.

About 

Energy Services Of America

Energy Services of America Corporation is engaged in providing contracting services for energy-related companies. The company is primarily engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. It services the gas, petroleum, power, chemical, and automotive industries and does incidental work such as water and sewer projects. Energy Service’s other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services, and other services related to pipeline construction.

Source: SEC

Noble Capital Markets Uranium Power Players Investor Forum – Presenting Companies

Noble Capital Markets Uranium Power Players Investor Forum
August 31, 2021

View the Power Players Summit Presentations Here

View the Official Power Players Summit Book Here

The Noble Uranium Power Players Investor Forum is a virtual conference bringing together leading companies involved in the exploration and production of uranium. Demand for uranium is growing as idled nuclear plants are restarted and new plants are being built. At the same time, uranium supply is decreasing as mines run out of uranium and new potential mines are not being developed due to low uranium pricing. Many experts believe uranium prices will rise in upcoming years although the timing and magnitude of the increase are unknown. Our panel of management teams will discuss their respective company’s roles in the revitalization of uranium mining. Noble Capital Markets senior uranium analyst, Michael Heim, will guide the companies through a question and answer session following each presentation.

The Investor Forum is free and open to all registered users of Channelchek. Registration is fast and free. Not already a member? Use the link below to register now so you’re ready to view the Investor Forum presentations on August 31.

Register for Channechek to gain access to the Investor Forum

On Mobile? Register for Channelchek here!





Click the logos for more information on the presenting companies



Azincourt Energy (AZURF)
 

Blue Sky Uranium (BKUCF)
 

CanAlaska Uranium (CVVUF)
 

enCore Energy (ENCUF)
 

Energy Fuels (UUUU)
 

GoviEx Uranium (GVXXF)
 

Peninsula Energy (PENMF)
 

Standard Uranium (STTDF)
 

InPlay Oil (IPOOF)(IPO:CA) – Estimates and Price Objective Raised After Outstanding Quarter

Tuesday, August 17, 2021

InPlay Oil (IPOOF)(IPO:CA)
Estimates and Price Objective Raised After Outstanding Quarter

As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    On August 11, InPlay reported impressive operating and financial results on the heels of favorable recent drilling. In our note dated August 12, we discussed the success of three recent wells in the Pembina Basin that have led management to raise production and cash flow projections. The company raised projections by approximately 10%, the second time they have raised guidance this year. In addition, they redirected drilling towards the Pembina basin and predicted that they will lower debt even as they increase capital expenditures.

    More production and high energy prices means higher earnings and cash flow.  We are raising our 2021 production rate to 5,625 boe/d which puts us in the middle of the latest guidance range of 5,500-5,750 boe/d. Should future drilling in Pembina prove as successful as recent drilling, we would not be surprised to see management raise guidance again. We are also raising our WTI 2021 forecast to $65 …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Energy Services of America (ESOA) – PPP Loan Forgiveness Positive

Tuesday, August 17, 2021

Energy Services of America (ESOA)
PPP Loan Forgiveness Positive

Energy Services of America Corporation is engaged in providing contracting services for energy-related companies. The company is primarily engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. It services the gas, petroleum, power, chemical and automotive industries, and does incidental work such as water and sewer projects. Energy Service’s other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Fiscal 3Q2021 (June) results fall short of expectations due to gas & oil transmission weakness. Compared to the June 2020 quarter and our expectations, the June 2021 quarter was weak despite the December 2020 acquisition of West Virginia Pipeline (WVP). Gross profit of $2.7 million was down slightly, but adjusted EBITDA of $0.7 million was almost half of last year’s EBITDA of $1.4 million. Revenue was down due to gas & oil transmission weakness and EBITDA was also burdened by higher G&A expense.

    Adjusting 2021 EBITDA estimate to reflect FY3Q2021 operating results.  Given that operating results were below expectations and costs are likely to remain higher, we are lowering FY2021 EBITDA to $5.3 million from $8.0 million. The backlog increased to $73.1 million from $61.2 million and general construction contracts of $13.0 million have been awarded this quarter, which supports our positive …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Gevo Inc. (GEVO) – Net Zero One Engineering and RNG Plant Moving Ahead

Monday, August 16, 2021

Gevo, Inc. (GEVO)
Net Zero One Engineering and RNG Plant Moving Ahead

Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    EBITDA losses continued in 2Q2021, but cash higher due to RNG plant financing. Given the stage of development of the renewable fuels concept, it isn’t surprising that EBTDA was negative $17.1 million due to higher development costs. We expect negative EBITDA to continue into at least next year. Cash increased $567 million from $525 million in 1Q2021 due to RNG debt financing of $69 million which was partially offset by the quarterly cash burn.

    RNG plant financed and under construction.  BP identified as the customer. In 2Q2021, 1.5% debt financing of $69 million for the renewable natural gas (RNG) plant in NE Iowa was finalized. Construction began and capex will be reimbursed from funds held in trust over the next three quarters. BP is the customer, which is a positive …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Release – Capstone Green Energys United Kingdom Integrated Remanufacturing Facility Expands its Global Remanufacturing Training and Support Capabilities

 


Capstone Green Energy’s United Kingdom Integrated Remanufacturing Facility Expands its Global Remanufacturing, Training, and Support Capabilities

 

VAN NUYS, CA / ACCESSWIRE / August 16, 2021 / Capstone Green Energy Corporation (www.CapstoneGreenEnergy.com) (NASDAQ:CGRN), formerly Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) (“Capstone” or the “Company”), announced today the completion of the grid interconnect expansion at the UK Integrated Remanufacturing Facility which allows for the building and testing of Capstone’s C200 engines. Expanding the operations at the UK facility is fundamental for the long term support of Capstone’s established and growing sustainable energy fleet in the EMEA (Europe, Middle East & Africa) region.

Located a short distance south of London and close to UK’s major shipping infrastructure, Capstone’s strategically located Gosport facility plays an increasingly important role in supporting the growth and expansion of the global microturbine fleet, as well as the rental program, which is a critical component of the Company’s Energy as a Service (EaaS) business line. The construction of individual test cells and an increased grid export capacity agreement of 500kW marks a significant milestone in the UK operation’s expanded capability to remanufacture C200 powerheads, in addition to remanufacturing the C200 recuperators.

From an original footprint of 3,000 square feet in 2009 to the current 19,000 square feet expanded facility, the UK operation has evolved from a warehouse for aftermarket parts and hub for field support, to a fully integrated remanufacturing facility capable of serving the EMEA region’s future build requirements for Capstone’s flagship C200 engines. Taking recent possession of the adjacent building also marks the start of a trade-in program for a region with a legacy fleet to upgrade to the more efficient Signature Series product. The added floor space will accommodate a state-of-the-art training suite for in classroom and hands-on training for regional Distributors fulfilling their need to reduce travel costs while staying product-current and maintaining vital coverage.

“Continuing to invest in our UK operation is critical to Capstone’s key objectives to reduce and drive down freight dependency and offset manufacturing costs through our remanufacturing program. In parallel, we are improving response times for all our existing Distributor partners and growing our Energy as a Service (EaaS) business as we expand the global rental fleet,” said Darren Jamison, Capstone’s President and Chief Executive Officer “By adding complex remanufacturing processes, the UK facility now mirrors the Capstone US-based testing facilities. These capabilities will accelerate Capstone’s ability to provide parts and services to EMEA and improve future aftermarket margins” added Mr. Jamison.

“The ability to remanufacture in the UK has proven invaluable for the region, so executing the plan to maximize capability through engine builds and staging rental growth is the next natural step,” said Tracy Chidbachian, Capstone Director of Customer Service. “Led by Jim Newbold, our Director of Global Services, the UK’s highly experienced and talented team plays a vital role in Capstone’s broader support plan and strategic development for the region,” concluded Ms. Chidbachian.

About Capstone Green Energy

Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ:CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000 units to 83 countries and estimates that, in FY21, it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated at 1,115,100 tons of carbon and $698 million in annual energy savings.

For more information about the Company, please visit: www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on TwitterLinkedInInstagramFacebook, and YouTube.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding expectations for green initiatives and execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the Securities and Exchange Commission, including the disclosures under “Risk Factors” in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.

CONTACT:

Capstone Green Energy
Investor and investment media inquiries:
818-407-3628
ir@CGRNenergy.com

SOURCE: Capstone Green Energy Corporation

Release – Gevo Releases IMPACT an Environmental Social and Corporate Governance Report


Gevo Releases IMPACT, an Environmental, Social, and Corporate Governance (ESG) Report; Strengthening its Commitment to Transparency and Accountability

 

ENGLEWOOD, Colo., Aug. 16, 2021 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) has published IMPACT, a sustainability report which demonstrates Gevo’s mission to be transparent on its environmental, social, and corporate governance (ESG) performance. In addition to disclosing Gevo’s progress in 2020 and goals for the future, IMPACT shares details about Gevo’s holistic approach to commercializing high-value nutritional products and groundbreaking energy-dense, renewable transportation fuels. The report demonstrates Gevo’s environmental stewardship, workplace culture and social inclusivity, and internal leadership. It also fosters a deeper understanding of stakeholder needs, generates opportunities for long-term sustainable capital, and bolsters a drive for continuous improvement.

Gevo’s Chief Executive Officer, Dr. Patrick Gruber, has expressed his support for this progressive and comprehensive sustainability report: “We have a way of transforming renewable energy into energy-dense liquids. As we do that, we pay attention to the whole picture; we intend to track it, make it incredibly transparent. The ESG report is an important part of that effort. It’s also about our employees. We care about diversity in our workforce and bringing in the best skill sets we possibly can across the board. We are going to be a global company, and so for us, it’s incredibly important to build up our diversity in our workforce.”

IMPACT forecasts an exciting future for Gevo. In conjunction with Gevo’s pledge to reduce greenhouse gas (GHG) emissions for customers, the company is passionate about lowering the carbon footprint of internal systems and products. IMPACT also demonstrates the Board of Directors’ strong governance role in the effort to fight climate change. Gevo believes its technology and systems approach will improve the environment and deliver social benefits to the wider world and IMPACT provides a greater perspective on how the company plans to deliver those benefits.

To view the full IMPACT report, please visit: https://gevo.com/impact-2020/

About Gevo

Gevo is commercializing the next generation of gasoline, jet fuel and diesel fuel with the potential to achieve zero carbon emissions, addressing the market need of reducing greenhouse gas emissions with sustainable alternatives. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business. Learn more at www.gevo.com.

About ESG Reporting

According to NASDAQ’s ESG reporting guides, ESG generally refers to “a broad set of environmental, social and corporate governance considerations that may impact a company’s ability to execute its business strategy and create value over the long term,” and ESG reports are a vital and progressive tool for assessing publicly-traded companies. Since 2011, there has been a dramatic increase in sustainable reporting from corporate entities. In its 2020 analysis, the Governance & Accountability Institute (G&A) found that 90% of companies in the S&P 500 published an ESG report. This illustrates an increased demand from both investors and business leaders for transparency, safety, and fairness in the corporate sector.

IMPACT provides qualitative examples for relevant topics in the United Nations (UN) Sustainable Development Goals (SDG). The contents are also informed by the Sustainability Accounting Standards Board (SASB) Biofuels Industry Standard and the SASB Agricultural Products Industry Standard. Gevo continues to assess stakeholders’ interest in other frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) and may expand said reporting in the future. Unless otherwise noted, the report discloses activities and results for operated assets from January 1, 2020, to December 31, 2020.

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, without limitation, including the publication of Gevo’s ESG report, the statements contained in Gevo’s ESG report, Gevo’s sustainability practices, Gevo’s products, Gevo’s technology, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020, and in subsequent reports on Forms 10-Q and 8-K and other filings made ith the U.S. Securities and Exchange Commission by Gevo.

Investor and Media Contact
IR@gevo.com
+1 720-647-9605

Gevo Releases IMPACT, an Environmental, Social, and Corporate Governance (ESG) Report; Strengthening its Commitment to Transparency and Accountability


Gevo Releases IMPACT, an Environmental, Social, and Corporate Governance (ESG) Report; Strengthening its Commitment to Transparency and Accountability

 

ENGLEWOOD, Colo., Aug. 16, 2021 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) has published IMPACT, a sustainability report which demonstrates Gevo’s mission to be transparent on its environmental, social, and corporate governance (ESG) performance. In addition to disclosing Gevo’s progress in 2020 and goals for the future, IMPACT shares details about Gevo’s holistic approach to commercializing high-value nutritional products and groundbreaking energy-dense, renewable transportation fuels. The report demonstrates Gevo’s environmental stewardship, workplace culture and social inclusivity, and internal leadership. It also fosters a deeper understanding of stakeholder needs, generates opportunities for long-term sustainable capital, and bolsters a drive for continuous improvement.

Gevo’s Chief Executive Officer, Dr. Patrick Gruber, has expressed his support for this progressive and comprehensive sustainability report: “We have a way of transforming renewable energy into energy-dense liquids. As we do that, we pay attention to the whole picture; we intend to track it, make it incredibly transparent. The ESG report is an important part of that effort. It’s also about our employees. We care about diversity in our workforce and bringing in the best skill sets we possibly can across the board. We are going to be a global company, and so for us, it’s incredibly important to build up our diversity in our workforce.”

IMPACT forecasts an exciting future for Gevo. In conjunction with Gevo’s pledge to reduce greenhouse gas (GHG) emissions for customers, the company is passionate about lowering the carbon footprint of internal systems and products. IMPACT also demonstrates the Board of Directors’ strong governance role in the effort to fight climate change. Gevo believes its technology and systems approach will improve the environment and deliver social benefits to the wider world and IMPACT provides a greater perspective on how the company plans to deliver those benefits.

To view the full IMPACT report, please visit: https://gevo.com/impact-2020/

About Gevo

Gevo is commercializing the next generation of gasoline, jet fuel and diesel fuel with the potential to achieve zero carbon emissions, addressing the market need of reducing greenhouse gas emissions with sustainable alternatives. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business. Learn more at www.gevo.com.

About ESG Reporting

According to NASDAQ’s ESG reporting guides, ESG generally refers to “a broad set of environmental, social and corporate governance considerations that may impact a company’s ability to execute its business strategy and create value over the long term,” and ESG reports are a vital and progressive tool for assessing publicly-traded companies. Since 2011, there has been a dramatic increase in sustainable reporting from corporate entities. In its 2020 analysis, the Governance & Accountability Institute (G&A) found that 90% of companies in the S&P 500 published an ESG report. This illustrates an increased demand from both investors and business leaders for transparency, safety, and fairness in the corporate sector.

IMPACT provides qualitative examples for relevant topics in the United Nations (UN) Sustainable Development Goals (SDG). The contents are also informed by the Sustainability Accounting Standards Board (SASB) Biofuels Industry Standard and the SASB Agricultural Products Industry Standard. Gevo continues to assess stakeholders’ interest in other frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) and may expand said reporting in the future. Unless otherwise noted, the report discloses activities and results for operated assets from January 1, 2020, to December 31, 2020.

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, without limitation, including the publication of Gevo’s ESG report, the statements contained in Gevo’s ESG report, Gevo’s sustainability practices, Gevo’s products, Gevo’s technology, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020, and in subsequent reports on Forms 10-Q and 8-K and other filings made ith the U.S. Securities and Exchange Commission by Gevo.

Investor and Media Contact
IR@gevo.com
+1 720-647-9605

Capstone Green Energy’s United Kingdom Integrated Remanufacturing Facility Expands its Global Remanufacturing, Training, and Support Capabilities

 


Capstone Green Energy’s United Kingdom Integrated Remanufacturing Facility Expands its Global Remanufacturing, Training, and Support Capabilities

 

VAN NUYS, CA / ACCESSWIRE / August 16, 2021 / Capstone Green Energy Corporation (www.CapstoneGreenEnergy.com) (NASDAQ:CGRN), formerly Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) (“Capstone” or the “Company”), announced today the completion of the grid interconnect expansion at the UK Integrated Remanufacturing Facility which allows for the building and testing of Capstone’s C200 engines. Expanding the operations at the UK facility is fundamental for the long term support of Capstone’s established and growing sustainable energy fleet in the EMEA (Europe, Middle East & Africa) region.

Located a short distance south of London and close to UK’s major shipping infrastructure, Capstone’s strategically located Gosport facility plays an increasingly important role in supporting the growth and expansion of the global microturbine fleet, as well as the rental program, which is a critical component of the Company’s Energy as a Service (EaaS) business line. The construction of individual test cells and an increased grid export capacity agreement of 500kW marks a significant milestone in the UK operation’s expanded capability to remanufacture C200 powerheads, in addition to remanufacturing the C200 recuperators.

From an original footprint of 3,000 square feet in 2009 to the current 19,000 square feet expanded facility, the UK operation has evolved from a warehouse for aftermarket parts and hub for field support, to a fully integrated remanufacturing facility capable of serving the EMEA region’s future build requirements for Capstone’s flagship C200 engines. Taking recent possession of the adjacent building also marks the start of a trade-in program for a region with a legacy fleet to upgrade to the more efficient Signature Series product. The added floor space will accommodate a state-of-the-art training suite for in classroom and hands-on training for regional Distributors fulfilling their need to reduce travel costs while staying product-current and maintaining vital coverage.

“Continuing to invest in our UK operation is critical to Capstone’s key objectives to reduce and drive down freight dependency and offset manufacturing costs through our remanufacturing program. In parallel, we are improving response times for all our existing Distributor partners and growing our Energy as a Service (EaaS) business as we expand the global rental fleet,” said Darren Jamison, Capstone’s President and Chief Executive Officer “By adding complex remanufacturing processes, the UK facility now mirrors the Capstone US-based testing facilities. These capabilities will accelerate Capstone’s ability to provide parts and services to EMEA and improve future aftermarket margins” added Mr. Jamison.

“The ability to remanufacture in the UK has proven invaluable for the region, so executing the plan to maximize capability through engine builds and staging rental growth is the next natural step,” said Tracy Chidbachian, Capstone Director of Customer Service. “Led by Jim Newbold, our Director of Global Services, the UK’s highly experienced and talented team plays a vital role in Capstone’s broader support plan and strategic development for the region,” concluded Ms. Chidbachian.

About Capstone Green Energy

Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ:CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000 units to 83 countries and estimates that, in FY21, it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated at 1,115,100 tons of carbon and $698 million in annual energy savings.

For more information about the Company, please visit: www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on TwitterLinkedInInstagramFacebook, and YouTube.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding expectations for green initiatives and execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the Securities and Exchange Commission, including the disclosures under “Risk Factors” in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.

CONTACT:

Capstone Green Energy
Investor and investment media inquiries:
818-407-3628
ir@CGRNenergy.com

SOURCE: Capstone Green Energy Corporation

Gevo, Inc. (GEVO) – Net Zero One Engineering and RNG Plant Moving Ahead

Monday, August 16, 2021

Gevo, Inc. (GEVO)
Net Zero One Engineering and RNG Plant Moving Ahead

Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    EBITDA losses continued in 2Q2021, but cash higher due to RNG plant financing. Given the stage of development of the renewable fuels concept, it isn’t surprising that EBTDA was negative $17.1 million due to higher development costs. We expect negative EBITDA to continue into at least next year. Cash increased $567 million from $525 million in 1Q2021 due to RNG debt financing of $69 million which was partially offset by the quarterly cash burn.

    RNG plant financed and under construction.  BP identified as the customer. In 2Q2021, 1.5% debt financing of $69 million for the renewable natural gas (RNG) plant in NE Iowa was finalized. Construction began and capex will be reimbursed from funds held in trust over the next three quarters. BP is the customer, which is a positive …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Release – Gevo Reports Second Quarter 2021 Financial Results


Gevo Reports Second Quarter 2021 Financial Results

 

ENGLEWOOD, Colo., Aug. 12, 2021 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) today announced financial results for the second quarter of 2021 and recent corporate highlights.

Recent Corporate Highlights

  • On August 9, 2021, Gevo announced that its wholly-owned renewable natural gas (“RNG”) project company, Gevo NW Iowa RNG, LLC (“Gevo RNG”), has signed binding, definitive agreements with BP Canada Energy Marketing Corp. and BP Products North America Inc. for the sale of RNG. The RNG project is on schedule and on budget with an anticipated startup early 2022. Beginning in late 2022, Gevo RNG expects to generate cash distributions to Gevo of approximately $9 to $16 million per year.

  • On August 2, 2021, Gevo announced the appointment of Jaime Guillen to its Board of Directors. Mr. Guillen is a Managing Partner at Faros Infrastructure Partners LLC, an investment firm with offices in the United Kingdom, the United States and Mexico.
  • On April 15, 2021, Gevo closed the offering of $68,155,000 in 2021 Bonds to finance the construction of its renewable natural gas project in Iowa.

2021 Second Quarter Financial Highlights

  • Ended the quarter with cash, cash equivalents, restricted cash and marketable securities totaling $567.2 million compared to $525.3 as of the end of Q1 2021 and $6.3 million as of the end of Q2 2020
  • Revenue of $0.4 million for the quarter compared to $1.0 million in Q2 2020
  • Loss from operations (which includes $5.5 million of preliminary stage project costs for Net-Zero 1) of ($19.0) million for the quarter compared to ($5.3) million in Q2 2020
  • Non-GAAP cash EBITDA loss of ($17.1) million for the quarter compared to ($3.1) million in Q2 2020
  • Net loss per share of ($0.09) for the quarter compared to ($0.40) in Q2 2020
  • Non-GAAP adjusted net loss per share of ($0.09) for the quarter compared to ($0.39) in Q2 2020

Commenting on the second quarter of 2021 and recent corporate events, Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer, said “The engineering and design work for our Net-Zero 1 Project is going well. We are figuring out the optimizations and integrations for Net-Zero 1, and how to generate more cash sooner. We are looking forward to completing the next phase of the engineering work in December of this year and moving forward towards getting the financing closed in the first half of next year.”

Second Quarter 2021 Financial Results

Revenue for the three months ended June 30, 2021 was $0.4 million compared with $1.0 million in the same period in 2020.

During the three months ended June 30, 2021, hydrocarbon revenue was $0.3 million compared with $0.9 million in the same period in 2020. Hydrocarbon sales decreased because of lower production volumes at Gevo’s demonstration plant at the South Hampton Resources, Inc. facility in Silsbee, Texas (the “South Hampton Facility”). Gevo’s hydrocarbon revenue is comprised of sales of sustainable aviation fuel and renewable premium gasoline.

As a result of COVID-19 and in response to an unfavorable commodity environment, Gevo terminated its production of ethanol and distiller grains in March 2020.  As previously announced, Gevo’s production facility in Luverne, Minnesota (the “Luverne Facility”) is currently producing isobutanol.  During the second half of 2021, Gevo expects to send finished isobutanol from the Luverne Facility to the South Hampton Facility so that renewable premium gasoline or jet fuel can be produced.

Cost of goods sold was $2.8 million for the three months ended June 30, 2021, compared with $2.6 million in the same period in 2020. Cost of goods sold includes $1.6 million associated with the maintenance of the Luverne and South Hampton Facilities and approximately $1.2 million in depreciation expense for the three months ended June 30, 2021.

Gross loss was $2.4 million for the three months ended June 30, 2021, compared with a $1.7 million gross loss in the same period in 2020.

Research and development expense increased by $0.7 million during the three months ended June 30, 2021 compared with the same period in 2020, due primarily to an increase in personnel and consultant expenses as we work to improve our process for growing and fermenting yeast strains.

Selling, general and administrative expense increased by $2.1 million during the three months ended June 30, 2021, compared with the same period in 2020, due primarily to increases in personnel, professional fees and insurance to support the growth in operations and an increase in consulting related to creating our first Environmental, Social and Governance (“ESG”) report, which will be released during the third quarter 2021, and documenting our compliance with Section 404(b) of the Sarbanes-Oxley Act.

Preliminary stage project costs increased by $5.3 million during the three months ended June 30, 2021, compared with the same period in 2020, due primarily to increased consulting for preliminary engineering costs, depreciation of the right of use assets related the agreements with the fuel supply and lease agreements and personnel expenses to support the growth in business activity at our Net-Zero projects.

Loss from operations in the three months ended June 30, 2021 was ($19.0) million, compared with a ($5.3) million loss from operations in the same period in 2020.

Non-GAAP cash EBITDA loss in the three months ended June 30, 2021 was ($17.1) million, compared with a ($3.1) million non-GAAP cash EBITDA loss in the same period in 2020.

Interest expense has decreased by $0.5 million in the three months ended June 30, 2021 as compared to the same period in 2020, due to the conversion of all of Gevo’s 12% convertible senior secured notes due 2020/2021 to common stock during 2020.

In the three months ended June 30, 2021, Gevo recognized net non-cash gain totaling less than $0.1 million due to changes in the fair value of certain of its financial instruments, such as warrants.

Gevo incurred a net loss for the three months ended June 30, 2021 of ($18.3) million, compared with a net loss of ($6.0) million during the same period in 2020. Non-GAAP adjusted net loss for the three months ended June 30, 2021 was ($18.3) million, compared with a non-GAAP adjusted net loss of ($5.8) million during the same period in 2020.

Cash, cash equivalents, restricted cash and marketable securities at June 30, 2021 was $567.2 million compared to $525.3 as of the end Q1 2021.

Webcast and Conference Call Information

Hosting today’s conference call at 4:30 p.m. EDT (2:30 p.m. MDT) will be Dr. Patrick R. Gruber, Chief Executive Officer, L. Lynn Smull, Chief Financial Officer, Carolyn M. Romero, Chief Accounting Officer, and Geoffrey T. Williams, Jr., Vice President – General Counsel & Secretary. They will review Gevo’s financial results and provide an update on recent corporate highlights.

To participate in the conference call, please dial 1 (833) 729-4776 (inside the U.S.) or 1 (830) 213-7701 (outside the U.S.) and reference the access code 2267135# or through the event weblink https://edge.media-server.com/mmc/p/8w4ypxhw .

A replay of the call and webcast will be available two hours after the conference call ends on August 12, 2021. To access the replay, please dial 1 (855) 859-2056 (inside the U.S.) or 1 (404) 537-3406 (outside the U.S.) and reference the access code 2267135#. The archived webcast will be available in the Investor Relations section of Gevo’s website at www.gevo.com .

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel, and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full lifecycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented, technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that Argonne National Laboratory GREET model is the best available standard of scientific based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, Gevo’s Net-Zero Projects, Gevo’s RNG Project, the engineering and design work for the Net-Zero 1 Project, Gevo’s offtake agreements, Gevo’s plans to develop its business, Gevo’s ability to successfully construct and finance its operations and growth projects, Gevo’s ability to achieve cash flow from its planned projects, the ability of Gevo’s products to contribute to lower greenhouse gas emissions, particulate and sulfur pollution and other statements that are not purely statements of historical fact. These forward-looking statements are made based on the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020 and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Non-GAAP Financial Information

This press release contains financial measures that do not comply with U.S. generally accepted accounting principles (GAAP), including non-GAAP cash EBITDA loss, non-GAAP adjusted net loss and non-GAAP adjusted net loss per share. Non-GAAP cash EBITDA loss excludes depreciation and amortization and non-cash stock-based compensation. Non-GAAP adjusted net loss and adjusted net loss per share excludes non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of Gevo’s financial instruments, such as warrants, convertible debt and embedded derivatives Management believes these measures are useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management’s internal comparisons to Gevo’s historical performance as well as comparisons to the operating results of other companies. In addition, Gevo believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Gevo’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided in the financial statement tables below.

Cash EBITDA loss is a non-GAAP measure calculated by adding back depreciation and amortization and non-cash stock compensation to GAAP loss from operations. A reconciliation of cash EBITDA loss to GAAP loss from operations is provided in the financial statement tables following this release.

Adjusted net loss per share is a non-GAAP measure calculated by adding back non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of our financial instruments, such as warrants, convertible debt and embedded derivatives, to GAAP net loss per share. A reconciliation of adjusted net loss per share to GAAP net loss per share is provided in the financial statement tables following this release.

Cash EBITDA loss is a non-GAAP measure calculated by adding back depreciation and amortization and non-cash stock compensation to GAAP loss from operations. A reconciliation of cash EBITDA loss to GAAP loss from operations is provided in the financial statement tables following this release.

Adjusted net loss is a non-GAAP measure calculated by adding back non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of our financial instruments, such as warrants, convertible debt and embedded derivatives, to GAAP net loss. A reconciliation of adjusted net loss to GAAP net loss is provided in the financial statement tables following this release.


 

Gevo, Inc.

Condensed Consolidated Balance Sheets Information

(Unaudited, in thousands, except share and per share amounts)

  June 30, 2021   December 31, 2020
Assets          
Current assets          
Cash and cash equivalents $ 17,085     $ 78,338  
Marketable securities (current)   246,886       ?  
Restricted cash (current)   57,645       ?  
Accounts receivable   847       527  
Inventories   2,216       2,491  
Prepaid expenses and other current assets   4,497       1,914  
Total current assets   329,176       83,270  
           
Property, plant and equipment, net   79,243       66,408  
Long-term marketable securities   175,169       ?  
Long-term restricted cash   70,464       ?  
Operating right-of-use asset   1,770       133  
Financing right-of-use asset   27,491       176  
Deposits and other assets   2,361       2,112  


Total assets


$


685,674
   

$


152,099
 
           
Liabilities          
Current liabilities          
Accounts payable and accrued liabilities $ 16,393     $ 3,943  
Operating lease liabilities (current)   ?       172  
Finance lease liabilities (current)   4,888       10  
Loans payable – other (current)   174       807  
Total current liabilities   21,455       4,932  
           
2021 Bonds payable (long-term)   66,120       ?  
Loans payable – other (long-term)   394       447  
Operating lease liabilities (long-term)   1,783       ?  
Financing lease liabilities (long-term)   19,715       162  
Other long-term liabilities   84       179  
Total liabilities   109,551       5,720  
           
Commitments and Contingencies          
           
Stockholders’ Equity          
Common Stock, $0.01 par value per share; 250,000,000 authorized,

197,964,476 and 128,138,311 shares issued and outstanding at June

30, 2021 and December 31, 2020, respectively.
  1,980       1,282  
Additional paid-in capital   1,100,932       643,269  
Accumulated other comprehensive loss   (307 )     ?  
Accumulated deficit   (526,482 )     (498,172 )
Total stockholders’ equity   576,123       146,379  


Total liabilities and stockholders’ equity


$


685,674
   

$


152,099
 
               

Gevo, Inc.

Condensed Consolidated Statements of Operations Information

(Unaudited, in thousands, except share and per share amounts)

  Three Months Ended June 30, Six Months Ended June 30,
    2021       2020       2021       2020  
Revenue and cost of goods sold              
Ethanol sales and related products, net $ ?     $ 83     $ ?     $ 3,783  
Hydrocarbon revenue   346       859       359       984  
Grant and other revenue   76       46       156       46  
Total revenues   422       988       515       4,813  
               
Cost of goods sold   2,794       2,644       4,788       10,783  
               
Gross loss   (2,372 )     (1,656 )     (4,273 )     (5,970 )
               
Operating expenses              
Research and development expense   1,404       677       2,782       1,257  
Selling, general and administrative expense   4,820       2,698       8,692       5,325  
Preliminary stage project costs   5,472       221       8,199       377  
Loss on disposal of assets   4,954       ?       4,954       38  
Restructuring expenses   ?       5       ?       304  
Total operating expenses   16,650       3,601       24,627       7,301  
               
Loss from operations   (19,022 )     (5,257 )     (28,900 )     (13,271 )
               
Other income (expense)              
Gain on forgiveness of SBA loan   641       ?       641       ?  
Interest Expense   (6 )     (541 )     (11 )     (1,086 )
(Loss) on modification of 2020 Notes   ?       (57 )     ?       (726 )
Gain (loss) from change in fair value of derivative warrant liability  



43
     



1
     



(10




)
   



8
 
(Loss) from change in fair value of 2020/21 Notes embedded derivative liability   ?       (176 )     ?       (276 )
Other income (expense)   91       (13 )     (30 )     55  
Total other income (expense), net   769       (786 )     590       (2,025 )
               
Net loss $ (18,253 )   $ (6,043 )   $ (28,310 )   $ (15,296 )
               
Net loss per share – basic and diluted $ (0.09 )   $ (0.40 )   $ (0.15 )   $ (1.04 )
Weighted-average number of common shares outstanding –

basic and diluted
 

198,137,420
      15,071,105       190,892,223       14,771,952  
               

Gevo, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited, in thousands, except share and per share amounts)

  Three Months Ended June 30, Six Months Ended June 30,
    2021       2020       2021       2020  
               
Net Loss $ (18,253 )   $ (6,043 )   $ (28,310 )   $ (15,296 )
Other comprehensive income (loss)              
Unrealized gains (losses) on available-for-sale securities, net of tax   (307 )     ?       (307 )     ?  
Total change in unrealized gains (losses) on marketable securities   (307 )     ?       (307 )     ?  
               
Comprehensive Loss $ (18,560 )   $ (6,043 )   $ (28,617 )   $ (15,296 )
               

Gevo, Inc.

Condensed Consolidated Statements of Stockholders’ Equity Information

(Unaudited, in thousands, except share amounts)

    Common Stock   Paid-In Capital   Accumulated Other Comprehensive Loss   Accumulated Deficit   Stockholders’ Equity
    Shares   Amount        
                                   
  Balance, December 31, 2020 128,138,311     $ 1,282     $ 643,269     $     $ (498,172 )   $ 146,379  
                                   
  Issuance of common stock, net of issue costs 68,170,579       682       457,008                   457,690  
  Issuance of common stock upon exercise of warrants 1,863,058       18       1,099                   1,117  
  Non-cash stock-based compensation             562                   562  
  Issuance of common stock under stock plans, net of taxes (121,499 )     (1 )     1                    
  Net loss                         (10,057 )     (10,057 )
                                   
  Balance, March 31, 2021 198,050,449       1,981       1,101,939             (508,229 )     595,691  
                                   
  Issuance of common stock, net of issue costs             (45 )                 (45 )
  Issuance of common stock upon exercise of warrants 3,700             4                   2  
  Non-cash stock-based compensation             858                   858  
  Issuance of common stock under stock plans, net of taxes (89,673 )     (1 )     (1,824 )                 (1,823 )
  Other comprehensive loss                   (307 )           (307 )
  Net loss                         (18,253 )     (18,253 )
                                   
  Balance, June 30, 2021 197,964,476     $ 1,980     $ 1,100,932     $ (307 )   $ (526,482 )   $ 576,123  
                                   
  Balance, December 31, 2019 14,083,232     $ 141     $ 530,349     $     $ (457,986 )   $ 72,504  
                                   
  Issuance of common stock, net of issue costs 425,776       4       902                   906  
  Non-cash stock-based compensation             336                   336  
  Issuance of common stock under stock plans, net of taxes 105,882                                
  Net loss                         (9,253 )     (9,253 )
                                   
  Balance, March 31, 2020 14,614,890       145       531,587             (467,239 )     64,493  
                                   
  Issuance of common stock, net of issue costs 917,345       9       1,238                   1,247  
  Non-cash stock-based compensation             497                   497  
  Issuance of common stock under stock plans, net of taxes (18,137 )           (307 )                 (307 )
  Net loss                         (6,043 )     (6,043 )
                                   
  Balance, June 30, 2020 15,514,098     $ 154     $ 533,015     $     $ (473,282 )   $ 59,887  
                                   

 

Gevo, Inc.

Condensed Consolidated Cash Flow Information

(Unaudited, in thousands)

    Three Months Ended June 30, Six Months Ended June 30,
      2021       2020       2021       2020  
Operating Activities                
Net Loss   $ (18,253 )   $ (6,043 )   $ (28,310 )   $ (15,296 )
Adjustments to reconcile net loss to net cash used in

operating activities:
               
Loss (gain) from change in fair value of derivative warrant liability   (43 )     (1 )     10       (8 )
Loss from change in fair value of 2020/21 Notes and 2020 Notes embedded derivative liability     ?       176         ?       276  
Loss on sales of property, plant and equipment     4,954       38       4,954       38  
(Gain) from forgiveness of SBA PPP loans     (641 )     ?       (641 )       ?  
Stock-based compensation     692       501       1,617       673  
Depreciation and amortization     1,223       1,629       2,372       3,278  
Non-cash lease expense     (75 )     14       (58 )     29  
Non-cash interest expense     ?       243       2       393  
Other non-cash expenses     5       ?       5         ?  
Changes in operating assets and liabilities:                
Accounts receivable     (755 )     (594 )     (320 )     389  
Inventories     236       201       275       721  
Prepaid expenses and other current assets, deposits and other assets:     1,131       331       (3,142 )     164  
Accounts payable, accrued expenses and long-term liabilities   (777 )     (338 )     3,768       (1,475 )
Net cash used in operating activities     (12,303 )     (3,843 )     (19,468 )     (10,818 )
                 
Investing Activities                
Acquisitions of property, plant and equipment     (9,537 )     (817 )     (14,167 )     (1,607 )
Purchase of marketable securities     (422,362 )     ?       (422,362 )       ?  
Net cash used in investing activities     (431,899 )     (817 )     (436,529 )     (1,607 )
                 
Financing Activities                
Proceeds from issuance of 2021 Bonds     68,995       ?       68,995         ?  
Debt and equity offering costs     (3,074 )     (63 )     (34,757 )     (115 )
Proceeds from issuance of common stock and common stock warrants   (1,824 )     1,313       487,549       2,271  
Proceeds from the exercise of warrants   2       ?       1,119         ?  
Net settlement of common stock under stock plans   27       (156 )       ?       (310 )
Payments on secured debt     (53 )     (392 )     (53 )     (392 )
Proceeds from SBA loans     ?       1,006         ?       1,006  
Net cash provided by financing activities     64,073       1,708       522,853       2,460  
                 
Net increase (decrease) in cash and cash equivalents     (380,129 )     (2,952 )     66,856       (9,965 )
                 
Cash, cash equivalents, and restricted cash                
Beginning of period     525,323       9,289       78,338       16,302  
                 
End of period   $ 145,194     $ 6,337     $ 145,194     $ 6,337  
                 

Gevo, Inc.

Reconciliation of GAAP to Non-GAAP Financial Information

(Unaudited, in thousands, except share and per share amounts)

  Three Months Ended June 30,   Six Months Ended June 30,
Non-GAAP Cash EBITDA   2021       2020       2021       2020  
               
Loss from operations $ (19,022 )   $ (5,257 )   $ (28,900 )   $ (13,271 )
Depreciation and amortization   1,223       1,629       2,372       3,278  
Stock-based compensation   692       501       1,617       673  
Non-GAAP cash EBITDA $ (17,107 )   $ (3,127 )   $ (24,911 )   $ (9,320 )
               
Non-GAAP Adjusted Net Loss              
               
Net Loss $ (18,253 )   $ (6,043 )   $ (28,310 )   $ (15,296 )
Adjustments:              
(Loss) on modification of 2020 Notes   ?       (57 )     ?       (726 )
Gain (loss) from change in fair value of derivative warrant liability   43       1       (10 )     8  
(Loss) from change in fair value of 2020/21 Notes and 2020 Notes embedded derivative liability   ?       (176 )     ?       (276 )
Total adjustments   43       (232 )     (10 )     (994 )


Non-GAAP Net Income (Loss)
$ (18,296 )   $ (5,811 )   $ (28,300 )   $ (14,302 )
Non-GAAP adjusted net loss per share –

basic and diluted
$ (0.09 )   $ (0.39 )   $ (0.15 )   $ (0.97 )
Weighted-average number of common

shares outstanding – basic and diluted
  198,137,420       15,071,105       190,892,223       14,771,952  

Investor and Media Contact

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