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/

crash, bang, wallop!!
market does not like the look of this and spread is huge to deter.

more fundamentally, do you (potential buyer) really think that, apart from the political backlash of stripping out more rain forest and/or switiching from other food crops to maize, the underlying cost of maize will actually fall to allow ethanol from this source to be truly viable?

Im out, for a considerable loss, fed up with waiting for something that is taking far too long to materialise and by the time it does America would have been forced to lower their barriers and allow cheaper Brazillian ethanol in, fuel cells and biofuel from non-feedstock crops will be becoming far more competitive and gaining public favour over corn based fuels.
Good luck to remaining holders.

Ps. I am also very concerned that the doubling of plant capacity will be crippling to GTL since it is so expensive to do (More than the value of the existing plant)

sp is coming back

PLACING OF NEW ORDINARY SHARES BY MORGAN STANLEY SECURITIES
RAISE IN THE REGION OF US$25 MILLION
http://www.gtlresources.com/documents/Proposalforshareplacingofaround25millionDollars.pdf

'Coming back'??
They are placing the shares at 1!!!

Potts
The price hasn't been decided yet

The number of Placing Shares to be issued
pursuant to the Placing and the price at which the Placing Shares will be issued
will be determined at the close of the bookbuild.

1 is the nominal price the brokerage price will be set by auction.

Copied from other side

GTL seeks 13m

Companies: GTL
02/07/2007

Ethanol hopeful GTL Resources is planning a 13 million placing after starting production in the USA.

AIM-quoted GTL, headed by one-time Lloyd's chief executive Peter Middleton, started ethanol production 'on time and on budget' in late December at its La Rochelle plant near Chicago, with a capacity of 50 million gallons a year. For the year to March, with only three months production of 10.8 million gallons, the company cut its loss from 6.7 million to 1 million on 12.1 million turnover. GTL says that, since then, for April and May combined, earnings before interest, tax, depreciation and amortisation were 2.7 million for 9.7 million gallons.

GTL, whose nominated adviser and broker is the mighty Morgan Stanley, now wants to double La Rochelles capacity to 100 million gallons a year and plans to raise in the region of 13 million through an institutional placing at a price to be determined. The company has appointed German investment bank West LB to arrange debt financing of around US$170 million (85 million) in the US market.

Since its 1998 flotation at 30p, GTL has given investors a switchback ride, surging to 10.50p in 2004 and later crumbling to below 1. With the placing as yet unpriced, the shares now trade at 128.5p, down 5.5p this morning, valuing the company at 29 million, and offer distinctly speculative appeal.
http://www.growthcompany.co.uk/news-and-comment/256743/gtl-seeks-13m.thtml

Information
Individual shareholders can join in via Robin Harrington. It is being treated as an institutional shareholder which will get an allocation of shares from Morgan Stanley.

Rumour
Minimum price will be 1.50p + at request of existing institutions.

Going in the right direction at last.

high R.O.I should be worrying too.

my shares stand me at 2.30 per share. I think I will be waiting a long time to get out of trouble. good luck to all still holding.

how often do we hear the tale of woe from X, Y and Z sitting on a thumping loss but being illogically afraid to bite the bullet and move on with something worthwhile ...... try TAN and DOO for starters!

cynic
Stop ramping this is going to 600p top up or get on board.

driver ... it may do in your lifetime, but for sure not mine! .... meanwhile, there are far far far better places to invest ..... extraordinary how if one does not go with the herd, one is accused of deramping ..... how childish and shame on you driver, whom i always regarded as more adult!

"extraordinary how if one does not go with the herd, one is accused of deramping"

never a truer word spoken, and a fine example of your double standards Mr Cynic!

i fully expected you to jump in, but though i say it myself, unlike you i keep my postings short and do not regurgitate incessantly

cynic

lol!

I believe in repetition for emphasis.

Oh bye the way I tried my growing up, and the maturity thing, during my professional life.

I must say I did not like it, children being, as they are, more honest and less introverted create a much happier environement.

Was not Tony Blair an adult?