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/

Ultimately, an 8% rise is nice.

However, what still worries me is that this time last week the share price was 160p and is now as i write 157.5p - even after good news.

Concerning.

and only needs to rise another 30/50% to get back to break even!

31% for me, i need 2.06 to break even, although i'm fairly sure that will happen later on this year, so i'm not worried.

60% on the bid sp for me to get to break even (2.38).. seems a long way off from here !

glad the SP has held the 8% gain.
hopefully tomorrow sees a similar gain.

Not suprised price increased today with update released, telling market info we already knew. There must be an update/review on the horizon soon from Morgan Stanley, if positive which I would hope it to be, it would really kick the shares into life.

UK Analyst
GTL Resources (GTL) shares ran ahead by 12p to 157.5p after it announced that its 50 million gallon ethanol plant at Rochelle had been running ahead of planned rates during both January and February. The plant was constructed on time and in budget in December, and peak daily rates have exceeded 54 million gallons a year equivalent, boding well for future production. Meanwhile, the US ethanol producer also said it expected the proposed expansion of the plant to 100 million gallons production a year to begin in the third quarter of 2007.

Spitfire, I agree re the broker analysis. now that we have RNS confirmation of the output, there really should be no reason why MS can't release a forecast.

Speaking realistically/conservatively, 210p a share ought to be on the cards, not counting future capacity expansion or a placing.

We may be down a bit but there have been some bigger players coming on board the last few days.

ST,
I'd expect at least 310p a share after all grief I've been through with this one!

skyhigh
Good job your not in seo or ser.

I am

mikeylad
That makes two of us then.

Skyhigh, naturally we are all hoping for that kind of figure on the SP (which would imply a mkt cap of about 71 mil on profits of 7.1 mil, PE 10). Could become a reality as the expansion and increased production get underway, or even on existing production, but watch out for the commodities markets which are really going to be the key factor in all of this.

Driver
I am right in thinking that gtl is for the inst's, again another rns today on major interest, are we the the small pi's being driven out with sp when production up and running and have revenue /

Mikey, there is no earthly reason why companies, institutional investors or anybody else would want to drive out PI's. And if they did, they certainly wouldn't do it by artificially depressing the SP.

We should be glad when we see the institutions buying, as ultimately this will lead to the SP rising.

(FWIW I worked in insitutional custody banking for a number of years.)

There is simply a lack of positive sentiment in the market; today's Times comments on worries over falling ethanol prices, although it still seems to me that eth is up over the last few months.

This one will come through for us when it has demonstrated some profits being made.

IMHO, PDYOR. Thanks!

mikeylad
Agree with soul, the company is as mystified as us and well p** off with the sp where it is, GTL is well under valued if youre not on board you should be.

Holding(s) in Company

http://moneyam.uk-wire.com/cgi-bin/articles/200703211747174679T.html

can someone post how much of gtl is owned by inst's and which one's please as I find conflicting figures

m

This threads a bit quiet.... Monday morning blues???

Actually speaking of blue, would be nice to see some today.