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/

hi there, I bought 100,000 of these gtl before the consolidation on 28th november 2006. I paid 2.34 pence per share for one lot, and on the 13th november 2006, I bought another 100,000 at 2.23 pence so mine with dealing costs are averaging out at 2.3059 per share. around the same price as you have paid. if I was to sell them now I would be taking around a 1500 loss. Not good. I would not buy any more of these shares. Maybe they will take off soon on some good news. I hope so. My advice on this one is to tuck them away and forget about them for a while. Good luck to all holding.

Spot on janetbennison, tuck them away for the future.

I brought 1000 at 2.45 (equivalent) November, then another 1000 at 1.95 last month for average price of 2.20.

I am looking forward to the next fortnight with GTL.

I've got a pretty good average of around 180. Bought heavily at 200, further at 200 a few days later, then 190 and finally 160. Still waiting to decide whether I will buy more.

Janet.. / Spit.. thanks for your comments. Have decided to take some profits from CIU which looks like it is losing ground now and add to GTL to lower my average. I believe the fundamentals are 'correct' and therefore, as you say, time will show the true value.

laurie, why are you looking forward to the next fortnight?

ghjones2
The website is meant to be updated today? And an RNS is being sorted for next week.
However the website update was due last week and was put on hold due to state of the market.

where did you read about the website update?

and the RNS!

I have my sources but of late not 100% reliable on timing but otherwise accurate.
Am chasing in regard to website update for today and confirmation.

laurie, i think your sources have failed you...

Looks like and I still haven't had a reply which is unusual.

spitfire&cynic Renewable sources,just think what our farmers could do by growing the crops required, far better than the the struggle they have to bear to survive in their present market. Perhaps no one has asked them! maybe GTL should think about it .They could import 1000,of tones,from the UK. We have the power and the water supply.

Unfortunately we haven't enough land in the UK for really large scale production, that's why it's more popular in France, USA and Brazil. GTL have set up production in Illinous, which is in the middle of Maize producing area to cut down on transport cost, so they wouldn't have to import any additional Maize.

For Maize prodution the UK isn't ideal, our summers are still too cool even with global warming, and we do seem to have water restrictions most years in the Southern Counties.

and as i keep repeating, the land used for growing maize (swathes more Amazon rainforest to be demolished no doubt!) not only gets swiftly impoverished without the input of tons and tons of nitrates and other wonderful synthetic fertilisers, but it also means it is taken out of use for more human-beneficial crops.

cant PHC help?

Yes they can, but they need to get their salesmen onto it.

PHC?

and whats happened to the ethanol graph, doesn't seem to be updating again, and its missing the current price from it on the right hand side.

Website update imminent!
Text took longer to clear with lawyers than I hoped. The performance update is being put on the website as I type this. Should be there from 12.30
Regards Peter