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/

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.

The net assets consist mainly of plant, which has a dubious value unless the business makes sufficient profit. Apart from that it has considerable debt.

At present I see no value greater than 50p.

Can anyone here confirm how much one unit of product costs to manufacture, and what they sell same for?

I have asked this question before, but never received any figures in reply, so I find it hard to understand how people can conclude this is a good or bad investment.

TIA.

driver .... assuredly will not be topping up ..... in this sector, i have stakes in DOO and GTL and BFC (short!!) and TAN, which thank goodness is performing exceptionally and in which i have invested most heavily .... would be more inclined to top up performers than falling knives

This is an interesting comment from a few minutes ago on the iii BB.


"The FT reports today that Exxon has cancelled its GTL project in Qatar and is investing instead, together with QGPC (or whatever they call it nowadays), in a domestic piped gas supply project. The reason was the GTL project's failure to meet Exxon's financial criteria."

I have been told Haystack (Gas To Liquid GTL) Nout to do with Ethanol

Andy
When we get the figures we will probably be able to break it down to units as you ask but not until then. What we can say is that RVA has a M/Cap of 55m producing a few million gallons, this from their last quarterly update

Renova Energy plc Quarterly operating update
Renova Energy plc (AIM:RVA), the integrated ethanol production, distribution and
marketing company, today provides its operating update for the 9 months ended 31
December 2006: 62% increase in sales volumes to 7.0 MMgal (2005 - 4.3 MMgal);

Comparing the two companies M/Caps makes GTL greatly under valued considering the 50m increasing to 100m gallons of ethanol they are going to produce.

Hi! GTellers, After looking thro many threads I have to say adverse but constructive criticsm is acceptable . What I find unacceptable is bleating, whinging and whining. It is not only unhelpful but is surely contrary to the purpose of this blog,which is in my mind to share information, to enable us shareholders to make informed choices and make money! GTL have set up on schedule, got their certification and are producing on schedule and secured their raw material at what we believe are good prices and we are told making money! IMO we should all get behind this and more important if any one of you has an inside ear in GTL tell their PR department to get off their butts. I could be pi.... on ethanol, but I have had my say.

There are differences between RVA and GTL.

RVA has a turnover of more than $12m and makes $1.1m before tax and pays a dividend.
GTL has no turnover and no profit

RVA has $19m in cash
GTL has $8.6, but much more then that in debt.

Haystack
That's the point GTL will have a turnover of $??????????? And will make a profit of $?????????? When they produce 100m gallons of ethanol they are not going to drink it all, I think they might be selling a few gallons.