Rex American Resources Corporation · NYSE:REX

Rex American Resources — Investor Presentation (December 2021)

18 slides from Rex American Resources's investor presentation, December 2021

  1. Slide 1: REX: NYSE

    REX: NYSE www.rexamerican.com

  2. Slide 2: Safe Harbor

    Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements can be identified by use of forward-looking terminology such as “project,” “may,” “expect,” “estim

  3. Slide 3: REX Overview

    REX Overview  Ownership in six ethanol production facilities  In aggregate, ~691 million gallons of TTM annualized gallons shipped  REX effective ownership interest of TTM annualized gallons shipped = ~279 million gallons  Pre-tax ROI’s of 12% to 32% (trailing five years annualized for period en

  4. Slide 4: REX Management

    REX Management  Stuart Rose - Founder, Executive Chairman of the Board Mr. Rose was elected Executive Chairman of the Board in 2015. Mr. Rose had served as Chairman of the Board and Chief Executive Officer since the Company’s incorporation in 1984 as a holding company. Prior to 1984, Mr. Rose was C

  5. Slide 5: REX Ethanol Strategy

    REX Ethanol Strategy  Disciplined investment criteria  Invest only if project meets strategic and financial risk and return criteria  Plants strategically located close to rail access and feedstocks  Utilize state-of-the-art ethanol production technology  Dry mill corn-processing  All plants a

  6. Slide 6: Annual Capacity - One Earth Energy & NuGen Energy

    Annual Capacity - One Earth Energy & NuGen Energy  150 million gallons of ethanol  350,000 tons of DDGs  42 million lbs. of corn oil separation  51 million bushels of corn ground Data is for each 6 plant

  7. Slide 7: REX Corn Belt Ethanol Portfolio

    REX Corn Belt Ethanol Portfolio South Dakota Iowa REX AMERICAN RESOURCES NUGEN ENERGY, LLC BIG RIVER UNITED ENERGY, LLC Marion, SD TTM GALLONS SHIPPED BY PLANTS IN WHICH IT HAS Dyersville, IA INTERESTS REX OWNERSHIP INTEREST 690.9 MILLION REX OWNERSHIP INTEREST 99.7% 5.7% TTM GALLONS SHIPPED REX’S E

  8. Slide 8: High Return Ethanol Investments

    High Return Ethanol Investments Cumulativ REX Trailing Investme REX Total e Five Year Plant nt Investme Earnings Annualized Timeline nt (10/31/21) ROI (10/31/21)(1) Oct. ’07 One Earth Production July ’09 $51M $212M 32% June ‘10 NuGen ($12.3M) $32M $182M 24% Nov. ’11 ($19.7M) Oct. ’06 ($5.0M) Big Riv

  9. Slide 9: Expense / Demand / Pricing Drivers

    Expense / Demand / Pricing Drivers Corn:  USDA crop production: 2018 (January 2019 report) 14.4 billion bushels (average acre yield of 176.4 bushels) 2019 (January 2020 report) 13.7 billion bushels (average acre yield of 168.0 bushels) 2020 (January 2021 report) 14.2 billion bushels (average acre y

  10. Slide 10: U.S. Corn Production

    U.S. Corn Production 16.0 15.1 15.1 (1) 14.6 14.4 14.2 14.2 (1) 13.9 13.7 14.0 13.6 13.0 13.1 12.4 12.3 11.8 12.0 12.0 11.1 10.8 10.5 10.1 10.0 9.0 8.0 6.0 4.0 2.0 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 In Billions of Bushels Sources:

  11. Slide 11: U.S. Ethanol Exports

    U.S. Ethanol Exports 1,800 1,675 1,600 1,459 1,387 1,400 1,334 1,193 1,200 1,161 1,000 910 839 800 732 617 600 400 200 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 In Millions of Gallons of Ethanol Source: RFA – Renewable Fuels Association 11

  12. Slide 12: Platts Spot Ethanol – CBOT Corn Crush Spread Trend

    Platts Spot Ethanol – CBOT Corn Crush Spread Trend Crush Spread = Price of 1 gallon of ethanol - Cost of corn to produce it  One bushel of corn makes ~2.8 gallons of ethanol  Crush Spread = Ethanol Price per Gallon – (Corn Price per Bushel / 2.8) 1.600  Crush spread excludes other production, tr

  13. Slide 13: Operating Results

    Operating Results Three Months Nine Months Ended Ended October October 31, 31, 2021 2021 2020 2020 Total net sales and revenue $203.1 $124. $562.8 $246. 2 7 Gross profit $25.2 $18.9 $58.8 $11.3 Net income (loss) attributable to REX Common Shareholders Continuing operations $13.3 $9.0 $26.3 $(1.5) Di

  14. Slide 14: Strong Balance Sheet

    Strong Balance Sheet ($ in October January millions) 31, 31, 2021 2021 Cash, cash equivalents & short-term $ 219.0 $ 180.7 investments Total current assets 307.2 258.8 Total current liabilities 46.5 30.7 Working Capital $ 260.7 $ 228.1 Total REX Equity (excludes non-controlling interests) $ 409.3 $

  15. Slide 15: Carbon Sequestration Project

    Carbon Sequestration Project One Earth Energy CCS Project  We are working with the University of Illinois to drill a carbon sequestration well.  We have received a permit from the Illinois Department of Natural Resources to drill a test well.  The drilling started on December 1, 2021. We hope to

  16. Slide 16: 45Q Tax Credit for CO2 Storage

    45Q Tax Credit for C02 Storage  The law allows any new project that commences before January 2026 to claim credits for 12 years.  Increasing Value of Credit (per ton): The new law significantly increases the value of carbon removal; while retaining a premium for sequestration that does not involve

  17. Slide 17: REX Summary

    REX Summary  Interests in six ethanol production facilities with annualized sales of ~691 million gallons (TTM)  REX effective ownership interest of annualized TTM gallons sold = ~279 million gallons  Pre-tax ROI’s of 12% - 32% (trailing five years annualized for period ending (10/31/21)  Indust

  18. Slide 18: Contact

    Doug Bruggeman Joseph Jaffoni, Norberto Aja REX JCIR Chief Financial Officer 212/835-8500 937/276‑3931 rex@jcir.com

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