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/

I've had to sell mine, due to the imminent listing of HL, for which I needed the funds for, will keep a close eye on this though!

A nice slow recovery.

Yes slow is probably the best way to describe it.

I am still confused with the sp of RVA they have issued a Q4 Operating Update.

RVA
For the full year, sales volume rose to 10.5 million gallons, benefiting from a 94 pct rise in the fourth quarter.

The ethanol producer and marketer said production increased 25 pct year-on-year, with the production currently at 25,000 gallons per day.


The M/Caps are now very similar GTL Market Cap 36.89m, RVA Market Cap 30.72m and they are only producing 10.5mg per year, I know it has been said before gtl's M/Cap should be about 144m with a sp of 652p in comparison at 50mg per year and 1304p at 100mg per year. Am I missing some thing?

yes probably, I stated previously from the New Arden report that they made a comparison between GTL and its rivals.
RVA being one of them, GTL was at around a 60% discount to RVA.

the entire plant originally cost to build. (Est.$107mil)
Takes 18 months to expand.


G D Potts - 06 Apr 2007 17:50 - 1427 of 1520
They've got a graph which creates a peer comparison for GTL based on the S.P and mrkt.cap of each company to create a $/gallon of production comparison.
GTL is therefore currently trading at 2$ per gallon of production compared to Renova - 3$, US BioEnergy $2.5, Pacific Ethanol $3.1 and VeraSun $2.9

This translates into a 40% discount at equity level to GTL's peers. (Based on an SP of 150 p = $3 dollars a share)

Agreed G D Potts, hence why I suspect a major rerating this month with I hope the analysis report from Morgan Stanley as the catalyst. IMO DYOR!

Ditched a few more today for some EcoEnergy.

Potts
I may top slice at 10

haha, i hope i can one day do the same with both.

GTL Resources PLC
11 May 2007


For Immediate Release 11 May 2007

GTL Resources plc
('GTL' or the 'Company')

Appointment of West LB

http://moneyam.uk-wire.com/cgi-bin/articles/200705110700424156W.html

West LB

http://www.westlb.de/cms/sitecontent/westlb/westlb_de/en.standard.gid-N2FkNDZmMzU4OWFmYTIyMWM3N2Q2N2Q0YmU1NmI0OGU_.html

I see both the graphs have gone tits up now!

ghjones2
Fixed the corn chart.

Can some one help me with the right ethanol chart here's the link.

http://new.quote.com/search.action?q=ethanol&qt=contains&e=&t=future&to=86&a=overview&o=50

No idea sorry, not so sure it matters anyway Driver since they have hedged all their output for this year as they have with the corn. So price fluctuations mean very little at the moment.

Potts
All the same nice to have them in the header.

a cost benefit analysis may show otherwise.

e.g. your time and effort agaisnt graphs that mean very little at the moment and have a natural tendency to fail, IMO.

Updte 24/05/07

'Whilst it remains early days for production at our ethanol plant, we are happy
to announce that we are continuing our record of delivery with a profitable
first quarter's operations.

http://moneyam.uk-wire.com/cgi-bin/articles/200705240701151460X.html