Gas to Liquid
Commencement of Operations Started 28/12/2006
The strategy of GTL Resources plc is to produce liquids such as methanol and ethanol from stranded gas, corn and other feedstocks with quality counterparties. GTL manages all aspects of a project: finance, feedstock supply, production and marketing.

In line with its strategy of seeking to develop and exploit markets for alternative fuels, GTL has, since the beginning of 2001, concentrated primarily upon developing methanol projects, principally in Australia, and, more recently, ethanol project work. The Board has recognised the strategic benefits of acquiring a cash generative asset on a shorter time scale than the typical methanol construction time of three years. In furtherance of this strategy, on 6 September 2005 GTL Resources acquired a controlling interest in Illinois River Energy (IRE) to build an ethanol plant at Rochelle, Illinois, through its wholly owned subsidiary, GTL USA, which has been established for the purpose of investing in ethanol projects in the USA. GTL USA has invested in IRE by way of a subscription for units of IRE pursuant to the Unit Purchase Agreement.

This project has the advantage that the Plant is expected to produce revenues on a shorter time scale and at a significantly lower capital cost than the methanol plant in Australia.

The Company intends to further expand within the ethanol industry in the United States or other suitable markets by selective acquisition of low cost production facilities. The Company sees itself as a potential consolidator of ethanol plants in a particularly fragmented market.

FT Tip
GTL Resources, an Aim-listed company. It raised money to build an ethanol plant in the US. Raw materials costs have risen but the price of ethanol has gone through the roof. The earnings potential should be spectacular.

New Plant

Construction started at Rochelle, Illinois site in September and production from the 50 million gallon per annum ethanol plant is expected to commence in the fourth quarter of 2006. Following unusually mild weather in Illinois the project has progressed well and is on schedule and on budget. Whilst the Companys main efforts centre on the successful delivery of the US ethanol project at Rochelle, the potential expansion of that site to 100 million gallons is being investigated. In addition and consistent
with GTLs stated strategy for the expansion of its interests in the ethanol industry, other ethanol opportunities have also been identified and will be analysed. Pictures Of The Site Under Construction March 27, 2006 http://www.illinoisriverenergy.com/html/construction.html


Arden
http://gtlresources.com/documents/ArdenAnalystResearchNote.pdf
http://www.gtlresources.com/documents/ArdenAnalystResearchNote.pdf
BBC News Item On Ethanol
http://news.bbc.co.uk/nolavconsole/ukfs_news/hi/newsid_4940000/newsid_4948400/bb_wm_4948456.stm

Ethanol Priceshttp://ethanolmarket.aghost.net/
Ethanol as a Transportation Fuel
http://energy.ca.gov/afvs/vehicle_fact_sheets/ethanol.html

Annual report for 2006
http://www.gtlresources.com/documents/GTLAnnualReport2006_001.pdf
Pics from Ethanol Producer Magazine of GTL's plant.
http://ethanolproducer.com/plant-images.jsp?plant_id=302&image_id=59
Commencement of Operations Started 28/12/2006
http://www.gtlresources.com/
Economics of Ethanol
http://www.ces.purdue.edu/extmedia/ID/ID-339.pdf
2 July 2007 GTL Resources FY pretax loss narrows, plans 13 mln stg placing to fund expansion
http://moneyam.uk-wire.com/cgi-bin/articles/200707020705014067Z.html
GTL Web Site
http://www.gtlresources.com/

laurie squash

It does seem very strange when about 90% of transactions are buys at 1.90, not alot of logic at work with the mm.

GDP

I have taken off my rose tinted glasses and tried to find the negitives with GTL. I could say that Oil may fall or Corn could rise, or that a severe drought in the US mid west could cause major disruption with corn supplies. Or the cost of adding 50m Gallon capacity to production, and where is the money coming from. It could be in the form of grants fron US government, not sure if they would qualify. Or that market sentiment is against this sector, but we all know quickly sentiment can change. And when it does change it could run and run. ( Sorry just slipped those glasses on again. )

But as mentioned alswhere, there will be a much clearer picture after the August finals. This is a share I'm happy to hold for many years, with no stop loss and no price target.

Looking back in, still no idea why sp down. Surprised GTL has not turned to rise, shares usually do after being I've stopped out. Still a fan. Respect all above views on your reasons to hold. On paper GTL has all going for it. But from experience, I've learned the hard way, and only have 3 rules on investing...cut lossess, cut losses, cut losses. No matter how much I love a company it's the market that sets the price. All sorts of emotions put me into a company ..but only stoplosses will take me out.
Bye the bye a 350+pip S/B on CLE over the past 3 days at 20 a pip has recovered most of gtl loss. Perplexed at CLE rise but the market says up. Trailing stops set close. Keep the faith hope to be back.

From the other side two sites that are well worth a read and lots of comparitive information for the financial formula quotes.
http://www.ces.purdue.edu/extmedia/ID/ID-339.pdf
http://www.ces.purdue.edu/bioenergy/index.html

laurie
Cheers for the link I have put this one in the header.
Economics of Ethanol

When will this price stop dropping...???

Just had an e. mail from Peter hope it helps: -
It is the job of our broker to engender confidence amongst market makers that GTL is following a sound policy. We are. Our ethanol plant in Rochelle is working very well and we are earning revenues for the first time in the companys history. Our new broker Morgan Stanley is preparing their first research note on GTL. I am not allowed to know what they will say but I hope it will lead the market to understand that we are now in the strongest position in the life of GTL and that in entering the ethanol market in USA when we did, we are in an excellent position to develop our business.

Thanks for the re-assurancing post Laurie.
Disappointing to see the downside at the moment but I am sticking with this one.

me too, but shall not be topping up either

All very well but... the sp is dropping....I'm well down on where I got in a few months ago at 2.38p... so much for all the "hype"..

I could be tepted to buy more in the hope that there'll be good news released and the sp will shoot up, but I won't

i would if i hadnt ploughed all my isa allowance into it for this year....

Similar case with me, 2.63 to break even. Also dissapointed at the 'hype' but hopefully the first quarters production figures will reveal all.

nor should you ..... all these alternative fuel companies will have a long gestation period before they truly become profitable ..... along the way, there will also be plenty of casualties, BFC looking like a prime candidate.

i already hold GTL, but am moderately tempted to get back into DOO whose process i think is far preferable, more sustainable and not subject to foodstock market forces

Interesting comment re Morgan Stanley as broker. If they recommend this then there are a lot of in-house portfolios that may well pick up on the stock.

It is galling to see this one sliding, but on a fundamental basis it looks ever more the bargain. Okay, you can't argue with the market, but if I was liquid and not overweight already I'd be looking for a suitable point at which to top up.

Keeping the faith . . .

Change of heart with DOO then cynic, so when the sp changes the graph changes, as does its signals, so you rate it as a buy again?! I told you a week ago but you have to wait for the graph to change?

tempted rather than complete change of heart ...... may miss the boat, but if FTSE takes a bit of a tumble, as is my guess, then DOO will follow suit

A lot of one upmanship going on here, as I have said before I have no worries with GTL although a bit disappointed with how low it has dropped, on the upside it does give some time to get more funds in place to average down. Thats the benefit of a varied portfolio some you win some you dont move your funds around then one-day bang retire.

good recovery in the end.

ghjones2
May be they noticed the ridiculous M/Cap of around 40m instead of the 150m it should be.

Compare RVA 1 February 2007 m/Cap 56m

62% increase in sales volumes to 7.0 MMgal (2005 - 4.3 MMgal);

More likely they raised the price to draw in a few punters to sell on the stock they took in ealier in the day. This could well drop again tomorrow.

driver ... a philosophical Q... if you bought enough to strat with, is it wise to buy more just because sp is lower?