Methes Energies International Ltd.’s (NASDAQ: MEIL) plans to ramp up production at its new biodiesel facility in Sombra, Ontario could result in significant improvements to its top and bottom-line financial results, based on publicly available projections in its latest 10-Q filing with the U.S. Securities and Exchange Commission (“SEC”). After a turbulent first quarter, improvements in the market for Renewable Identification Numbers (“RINs”) and new production from the Sombra facility could unlock tremendous value for investors over the coming quarters, particularly with the market’s low expectations. As a result, this is a stock that investors may want to take a closer look at moving forward. Current Production at Sombra Facility The Company’s new Sombra facility currently has two of the Denami 3000 processors with a total capacity of 13 million gallons of biodiesel per year. Once at full capacity, expected in the second half of 2013, Methes will become cash flow positive according to the company’s most recent 10-Q filing. Digging deeper into the company filings, one learns that the Sombra facility actually has the capacity to handle as many as 6 total Denami 3000 processors, which could produce an impressive 39.6 million gallons of biodiesel per year. Management has stated in filings that while financing would be needed to obtain these additional processors, it is their goal to have a total of 4 processors installed and running by May of 2014. Breaking Down the Sombra Facility’s Economics With Methes Energies’ Sombra facility currently having two Denami 3000 processors, and each one having an approximately 6.5 million gallons per year (mmgy) capacity, the facilities current production capabilities are 13 mmgy. With biodiesel prices hovering around $4.30/gallon this production level could generate some $56 million in annual revenues. Notably, these figures are nearly 10x higher than the $5.8 million in FY2012 revenues reported in its latest 10-K filing. These dynamics should help boost net operating income to about $5.7 million per year, assuming a 10% gross operating margin. Methes Energies’ fixed selling, general and administrative expenses (“SG&A”) totaled about $4.27 million in FY2012, which contributed to a net loss of approximately $4 million for the year. But with the Sombra facility generating an incremental $5.7 million in net operating income, the company could see profitability in FY2013 on a full-year basis, if it’s able to quickly ramp up production. Future Expansion Plans take Sombra to Full Capacity As stated above, the Sombra facility can in fact handle upwards of 6 total Denami 3000 processors, for a total production capacity of 39.6 mmgy. This translates into approximately $165 million per year in revenues, assuming that biodiesel stays at $4.30/gallon and that financing is available to build the machines. While each of these additional Denami 3000 processors would cost the company an upfront capital investment of around $1.5 million per unit, the additional contribution towards diesel production would quickly offset this expenditure. With each processor capable of producing 6.5 mmgy, combined with biodiesel at $4.30/gallon and a 10% gross operating margin, it should take approximately 7 months of full capacity ($28M per year/per unit multiplied by 10% gross operating margin, divided by $1.5 million cost per unit) production to offset the capital expenditure. With only $4.3 million in SG&A expenses, Methes should be able to turn a handsome profit on their investment in the Sombra facility going forward, if they are able to expand to full production levels.Even though Methes has not given a time frame to have the Sombra facility at the full production level of 39.6 mmgy, their stated goal of having an additional two processors online by May of 2014 is a realistic one that should have investors excited for the possible revenues to come.Potential Investment Opportunity Methes Energies International Ltd. (NASDAQ: MEIL) represents a compelling investment opportunity for investors willing to assume a little risk. While the RIN market has been somewhat turbulent in the past, U.S. EPA regulations and support seem to have stabilized the market moving forward. The company’s new Sombra facility will boost revenues past the $50 million per year mark once fully operational, while contributing more than $5 million to net operating income and potentially pushing the financials into the black. If successful, these results could be replicated and scaled with additional processors, providing investors with predictable income over time. In the end, these dynamics could make for an interesting play for investors relative to other players in the industry such as KiOR Inc. (NASDAQ: KIOR) and Renewable Energy Group Inc. (NASDAQ: REGI), among others. More Information:-Company Website http://www.methes.com/Sign up To Receive Future Email Update on Methes Energies http://www.emerginggrowthcorp.com/emailassets/meil/meil_landing.php About Emerging Growth LLC: EGC is a marketing and consulting firm that specializes in creating ongoing communications strategies for public and private companies. 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