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/

The chart reads to me we are near the rock bottom when the figures are out the chart will head north in a straight-line.

agree to disagree ..... looking at the 2 year chart above (post 1088), i see no support at this level and could easily see sp falling to 140/145 before any support of significance

cynic
You said VML was over bought when I got in I'm up 56%

that's fine ..... VML has continued upwards strongly too, so well done there ..... on the other hand UMN has reacted as i predicted, though i dare say you neither ran a trailing stop nor took profits.

i have never pretended to know much, and i certainly carry out no company analysis or research, for i wouldn't even undersatnd what iw as i was looking at most of the time!

Cynic
Didn't buy UMN to be fare you did say asm's chart looked good, it has continued up and touched 51p today my target is over 100p also bought in today CEN.

Sorry to be of topic but if GLT does go to 145p as Cynic suggest I will double my holding.

my patience ran out today, with these, i sold the last tranche... Maybe a wrong move, but they are now below my stops and i really dont like the look of the charts, yes i believe they will perform in the future, but wether that is next week or next year i cant tell...

BT ...i haven't sold, but seriouysly wonder if i am being foolhardy, though my stake is 1/3 of norm

I dont think it can go any lower - arent we expecting a monthly output report soon -

well wasnt I wrong - lower and lower it goes and harder and harder it becomes for break evens to be met. It needs a 20% rise to get back over 200p!!!

Management are meeting with Morgan Stanley this week so just IMHO hang in there.

Sells of course probably self-propigating at the moment. That's the trouble with stop losses. People are selling because their stop-loss has been breached, not because they think they should on company fundamentals. I've never used stop losses and has proved cost effective.

think it is more likley that MS will want to meet with GTL management to ask some searching Qs .... lol!

My target is still 50p and getting more likely.

Looking at the transaction it seems to be plenty of small amounts, I would think alot of investors are being stop/lossed out at the moment. Shame. I'm still hanging on in there, but I won't be adding any more for now.

target of 50p??? what planet are you on?

HS .... i would tend to agree with ghj ..... as far as i can see, lowest all time was 100p ..... though that level is not sacrosanct, it would be interesting to know from where you dragged your 50p target from? ..... on that basis, and given that there is 120p to fall, have you gone heavily short? ...... if not, why not?

Cynic
When it was 100p they didnt have a plant producing millions of gallons of ethanol, producing loads of revenue, producing hopefully loads of profit if not now but in the near future.

Haystack
50p may be if there is an earthquake, a fire, a tornado, or even a hurricane, but even then Im sure we are well insured.

driver ... you may have misinterpreted what i wrote ..... i hold GTL, though am certainly beginning to wonder why

cynic
We can all wonder why but my last post says it all, TOP UP.

Corn just bounced. $4.48 at the mo.

I'm inclined to agree with your "top up" advice, Driver. However, am still overweight and have no liquid, so have to stay put.