FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Date of Report (Date of earliest event reported) February 24, 2000.
HIGH PLAINS CORPORATION
(Exact name of registrant as specified in its charter)
Kansas #1-8680
(State or other jurisdiction of (Commission File
incorporation) Number)
200 W. Douglas #48-0901658
Suite #820 (IRS Employer
Wichita, Kansas 67202 Identification No.)
(Address of principal
executive offices)
(316) 269-4310
(Registrant's telephone number)
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Item 5 Other Information
Wichita, Kansas, February 24, 2000 - High Plains Corporation (Nasdaq:HIPC)
today released preliminary estimates of production and capital costs
necessary to modify its Colwich, KS plant for production of glycerol. The
initial capital cost of the proposed equipment additions and plant
modifications is projected to fall between $13 and $16 million, and
production costs should be between $.18 and $.24 per pound. The Company
still anticipates production of approximately 10 million pounds of glycerol
annually from its Colwich plant, to be sold in a U.S. market totaling roughly
400 million pounds. Market prices of glycerol are currently reported between
$.50 and $.65 per pound.
"The glycerol project was initially announced by the Company in November of
1999 as a way to diversify into higher value, fermentation-derived, chemical
products, while still maintaining the Company's core emphasis on ethanol
production," stated Gary R. Smith, President and CEO of High Plains. "We
still expect ethanol production of 18 to 20 million gallons per year from
this facility, but extraction of the higher value glycerol from our stillage
by-product (which currently sells for only one and one-half cents per pound
to four and one-half cents) should provide a substantial increase in
revenues, and a much greater margin, without increasing feedstock costs,"
continued Smith.
Smith emphasized that these projections are still preliminary, and that the
project design and engineering phase is still not complete. However, he
concluded by stating, "The project, anticipated to be operational by early
2001, is very promising in that it appears to be coming in within our
estimated cost ranges, and it should exceed the minimum return on investment
hurdle established by High Plains for new projects. It complements our
ongoing efforts to reduce costs and improve efficiencies at the Colwich
plant. This venture also builds on our recent alliances with EPCO Carbon
Dioxide Products, Inc. (to capture and sell our CO2 by-product), and with
Brooks Landfill Gas, LLC (which replaces most of the natural gas previously
needed to power the Colwich facility with low-cost gas from our local
landfill)."
Based in Wichita, Kansas, High Plains Corporation is among the nation's
largest producers of ethanol. The Company operates production facilities in
Colwich, Kansas; York, Nebraska and Portales, New Mexico. Additional
information is available on the Company's Web site, www.highplainscorp.com.
This press release contains forward-looking statements that are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Investors are cautioned that all forward-looking statements involve
risks and uncertainties, including without limitation risks of fluctuations
in feedstock commodity prices, changes in the market prices or demand for
motor fuels and Ethanol, legislative changes regarding air quality, fuel
specifications or incentive programs, as well as general market conditions,
competition and pricing. The Company believes that forward-looking
statements made by it are based upon reasonable expectations. However, no
assurances can be given that actual results will not differ materially from
those contained in such forward-looking statements. Additional information
concerning these and other factors is contained in the Company's Securities
and Exchange Commission filings, including its annual 10-K, Proxy Statement
and quarterly 10-Q filings, copies of which are available from the Company
without charge.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant had duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: February 24, 2000 HIGH PLAINS CORPORATION
/s/Gary R. Smith
President & CEO
