- A recent article suggests serious problems for Aemetis; the article suggests excessive leverage and an impending downward spiral.
- The article overstates the amount of debt owed by AMTX and exaggerates the degree of difficulty AMTX will have in repaying the debt.
- AMTX is generating strong cash flow and should be able to pay off roughly $35 million a year of the outstanding debt.
- With EBITDA of some $45 million and debt of roughly $42 million in July 2015, AMTX will have many alternatives for dealing with the remaining debt.
- With debt fully paid down in less than 2 years, AMTX can generate $2 a share in earnings and support a share price in the $20 - 30 range.