Company: REX
Filing Date: 2025-12-04
Form Type: 10-Q
Source: 0000930413-25-003566
Chunk: 29

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-12-04
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 charges.

26

 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Ethanol and By-Products

At October 31, 2025, we had investments in
three ethanol limited liability companies, in two of which we have a majority ownership interest. The following table is a summary
of ethanol entity ownership interests at October 31, 2025:

    Entity

    Location
    REX’s
    Current
    Ownership Interest

    One
    Earth Energy, LLC
    Gibson
    City, IL
    76.1%

    NuGen
    Energy, LLC
    Marion,
    SD
    99.7%

    Big River Resources, LLC:

Big River Resources W Burlington, LLC

Big River Resources Galva, LLC

Big River United Energy, LLC

Big River Resources Boyceville, LLC

        W. Burlington, IA

Galva, IL

Dyersville, IA

Boyceville, WI

        10.3%

10.3%

5.7%

10.3%

Our ethanol operations are highly dependent
on commodity prices, especially prices for corn, ethanol, distillers grains, distillers corn oil and natural gas, and availability
of corn. As a result of price volatility for these commodities, our operating results can fluctuate substantially. The price and
availability of corn is subject to significant fluctuations depending upon several factors that affect commodity prices in general,
including crop conditions, the amount of corn stored on farms, weather, federal policy, foreign trade, tariffs, and international
disruptions caused by wars or conflicts. Because the market prices of ethanol and distillers grains are not always directly related
to corn prices (for example, demand for crude and other energy and related prices, the export market demand for ethanol and distillers
grains, soybean meal prices, and the results of federal policy decisions and trade negotiations can impact ethanol and distillers
grains prices), at times ethanol and distillers grains prices may not follow movements in corn prices and, in an environment of
higher corn prices or lower ethanol or distillers grains prices, reduce the overall margin structure at the plants. As a result,
at times, we may operate our plants at negative or minimally positive operating margins.

We expect our ethanol plants to produce approximately
2.9 gallons of denatured ethanol for each bushel of corn processed in the production cycle. We refer to the actual gallons