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/

did not buy this morning, but my own inclination for reasons posted, is that DOO may currently be a better bet in this sector

laurie squash
There has been speculation on other sites on the recent large movers whether they are buys or sells as we approach production lift-off I would assume big players are getting into there own positions in or out.

G T L = Growth Traders Land

just kidding

Some new pics from the Web Site of the progress of the plant to date.

07.09.06

Whilst these photographs are by no means a full representation of progress to date they are intended to give a flavour of some of the more visible (and photogenic) activity.

hopefully all in - I am, well almost bar DOO + SYM,

shouldnt it be looking a bit more 'ready for action' ?

What do you think this one could do by the end of the year Driver? Price wise.

Driver
excellent picture, thanks, the future is green. what would happen to a small fish like GTL producing 50Million gallons of ethanol increasing it to 100Million gallons per annum?

HI Georgetrio

Care to guess what the sp may get too ????

well smiler if he asking driver - the one who appears the most educated of GTL activities -then his prediction wont be as potentially acurrate as Drivers.
Which negates your enquiry.

G D Potts
Re 'ready for action
My thoughts as well but then there are a few more months to go and they did say they were on schedule.

Price wise the only comparison is RVA with a similar M/Cap and producing a lot less ethanol a broker has put a target on RVA of 500p (from memory) doubling the M/Cap of GTL and as I said producing a lot less ethanol, so we could be looking at a three bagger from here say 7.5p for starters after production starts and the revenue starts rolling in. IMO.

The future who knows more plants more ethanol, more profit, the sp?

driver

7.5 sounds good fingers X ps. PH POSTED ON erx you seen it ?

gd potts, I was just asking if he cared to hazard a guess !!!

smiler
I have no problem with PH as long as he doesnt clutter up my ERX thread with his useless information.

Driver
Excellent point about RVA. In the latest Shares Mag, there is a Summary about RVA. And it goes like this
Booming demand for eco-friendly fuels means ethanol producer Renova has only started its share price ascent. Output will triple within a couple of years, sparking
more huge hikes in future.
I do not hold RVA, as my speciality is juicy little fishes like GTL. The mag writes:
The ethanol industry is entering something of golden age thanks to its environmentally sound quality. the target production for GTL is 100million gallons.

Smiler
Not easy to set price target for this one because anything is possible, and the upside potential huge. Will the sp shoot high? no doubt. i would say 7p is fair
start once the production gets underway but wait till they increase the production to 100Million gallons per annum, in my view, it will be sweet like celine Dion voice and nothing can stop the upside trend of the sp in this case. Best luck

georgetrio

thanks for that just wanted to get your thoughts on it , it is looking good driver put in some good pics ! wots up with fao ??

If any one is interested there is a lot of relevant stuff to GTL on the RVA report about ethanol and ethanol plants in the USA maps and info.

http://miranda.hemscott.com/ir/rva/pdf/2006_annual_report.pdf

driver cheers

smiler
nothing is wrong with FAO, the hesitation, the fear, the uncertainty, the mood, those are the things that we all face and sometimes we make irrational decisions.
Before, i used to buy shares when they rise but by doing so i was paying expensive prices. Now i do the opposite. The more people understand fao, the more the love. Investors like expensive shares, wait till GTL touches 10p, everybody will be buying and we will be banking some profit.

Can any1 assit?

I am thinking of investing in gtl especially when plant get up and running. Can some1 tell me how the production cpacity of gtl in 2007 affect its financials? I mean once its producing say 50,000 barrells what will this mean to the value of gtl?