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/

cynic yet again your pedantic attitude is starting to get on my nerves, do you not have a sensitive side?

I hold 12,000 worth of GTL so 10% is over 1,000 loss, I could pretend that that isn't a lot of money to me but as to everyone it is, so please be a bit more considerate. Whatever you do with your money is your business and i'm not particularly bothered, and why are you interested in this board anyway, you've sold your holding so do us all a favour and take your pessimism elsewhere.

do not be blinded by the fact that you are running a loss ..... just make sure you are not just refusing to bite the bullet because it brings home reality ..... if you really think GTL is the best thing since sliced bread and that your money could not be better invested elsewhere, then you are quite right to stay put ..... the holders of SEO thought or think likewise.

sorry if you don't like someone being realistic or a contrary view upsets your sensibilities.

cynic, it really isnt good form to gloat. My money too is now elsewhere. I chose not to be involved and take a loss as the report concluded: "The burning of ethanol releases large quantities of ozone, a serious air pollutant," he said. "In addition, the use of ethanol as a fuel releases formaldehyde and acetaldehyde, plus benzene and butadiene. All of these are carcinogens and are a threat to public health."
For those still in, I very much hope that the report is discreditted and you enjoy a healthy bounce.

why do you think a dose of realism is gloating? ..... i too lost too much money here; i ultimately took corrective action, albeit that i should have done it earlier ..... whereas you guys, having a different viewpoint, think GTL has a bright future ...... hope you will be laughing all the way to the bank within say 2 years

you are so smug, how much did you lose then?

a lot more than 1200 from memory, but tracking back is pretty time-consuming .... and why do you think i am being smug? ...... perhaps you are right about GTL and i am wrong ..... i have no problem with that; why do you have a problem with the reverse?

quotes such as "your money no doubt says so ..... mine is now elsewhere!" suggests that you are happy that you have avoided a loss when others have suffered, and that you are sat their with a big smug grin.

I did the same as you cynic, but much earlier.

Apart from the recent item posted above, I became aware of price increases in corn, the effects of which I have highlighted previously.

Economics began not to add up, so I sold around the 2 mark also at a loss.

I don't mind doing that when I think I have made a mistake and have made many over the years.

Good luck to holders, as cynic says who is to say at this stage, who is right and who is wrong?

An e. mail I had a while ago due to serious mood today here are main bits:-

Am in USA.Will be here for another week. Things going extremely well on phase 2. Will know when back in week of 23 April when we shall issue complete document to market.

SWW .... confess i was dumb ..... posted why i thought ethanol from maize was the wrong track for some time before i actually bit the bullet ..... doh!

the good thing about this BB is that it constantly reminds me to be realistic and as a result i am slowly learning (age is a terrible thing!) to cut losses instead of running them ad infinitum or even worse, trying to average down

Must admit I sold out this morning at 1.38, I brought another company that had been shouting at me to buy them. But my self imposed rules stated I had to sell my poorest performer ( GTL) . Always a hard decision to cut losses, I still believe that GTL is a run well company, and will in time make some good profits.

Still rules are rules, and there to protect my positions. Good luck to those still holding.

Regards

spitfire43.. I'm thinking of doing the same... out of interest, what other company did you go into ?

in biofuels, suggest revisit of DOO ...... PXC may be worth a flutter; plenty of info etc on that thread ..... POG for sure though a heavyweight ..... TAN worth a good look, though had strong rise in last few weeks ..... SIT is puzzlingly lacklustre but looks to have potential

skyhigh

I went into DETS, when I have moment I will start a thread for them.

cynic's OK by me if you are on a paper loss then take his comments on the chin it will be good to say I told you so when GTL comes good and it will you can buy at .0140 in old money the sp is a give away. GTL will be coming out with figures sooner or later and will be increasing its production 100% at some stage. You don't have to like ethanol it doesn't have to be good for your heath, if it's cheaper people will put it in their cars. GTL will be making a profit year in year out till the plant falls down the only problem with its sp is judging the bottom to top up.

Had a reply:-

Neither Arden nor M Stanley know the reason for todays selling whoich again is small numbers from retail. The last fortnight has been very successful. We will make an announcement next week and again around 10 May.

driver ... thanks for that ..... i have nothin g against ethanol, and for sure biofuels are here to stay and increasingly so ..... my "argument" with GTL is that imo, maize is the wrong way to go about making it ..... have posted why previously.

Cynic, D1 is back up and running - glad we bought in at similar times.

Posted a while back that I had sold my holdings for a loss at around 156 or something because Im hoping to make my money back before taking another look at GTL which IMO has a sound business and will continue to do well even if the shares dont.

Laurie thanks for the updates and I hope some announcements will help the share price.

I didnt follow the link about Ethanol releasing Ozone because it sounds like bullshit to me - why would Brazil and Bush be using and pushing ehtanol so hard if it did more harm to the atmosphere than petrol - get a fucking idea you jokers.

And Cynic im not debating the moral, and factual, issue that ethanol does take a food crop away but the by products of ethanol production can be used as feedstock for animals anyway. Supply will catch demand in a year or so. And when (I hate to offend) was the last time you saw a more than 5 thin Americans?

And please, try to refrain from being offended by cynic's measly, at best, comments on GTL.

Finally showed some sense and bailed out a couple of weeks ago. Its really amazing how blinkered some people can be rather than take a loss. I've got a feeling that it doesn't really matter what GTL's results are, with the current bad press. Even if they are brilliant, it will still be like P*****g against a hurricane!!

it was not really a moral issue on maize but more to do with the fact that it is a staple foodcrop for both humans and animals .... thus a rise in its underlying price pushes up the cost of meat and tortillas(!!) and of course makes GTL's base stock more expensive ...... though GTL may have hedged for the rest of this year, and maybe even part of next, eventually they run out of hedge - and maize!