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/

So we can make a simple calculation with regards to the market cap of GTL and Renova and conclude that GTL is highly undervalued - so then we have to ask why the shares mag has put RVA in its green portfolio over GTL? i feel a letter coming on ...

G D Potts

Shares mag will select renova instead of GTL because Renova is producing and selling ethanol right now; while GTL is not, at this stage. On that note, GTL is a higher beta little fish but the higher the risk .....higher reward. NOW where is the risk? When production starts in December it would be different. 50million gallons of smooth ethanol per annum increasing to 100million. That will be very interesting indeed. From December, at this price, GTL is highly undervalued. Before the market correction, I will be buying more.
Magement must perform and kick arses till the party begins
best luck

Yes but would you not expect a leading financial magazine for the private investor to spot the potential in GTL over RVA? their is risk but you could not say that there is no risk in any of the other comapnies in that portfolio. I think it is a mistake for Shares not to have GTL in their portfolio.
Also does anyone seem to notice that the Investors Chronicle and shares seem to run the same feature as each other each week, if not one either side?

G D POTTS

May be that's where they put their money at the moment and it takes time for little fishes to come on top of the waters if you know what i mean. Good point though.

Date 11/09/06

RICHARD BRANSON'S 214MILLION ON 'GREEN' FUEL
Sir Richard Branson is to plough funds into environmentally friendly fuels. The new Virgin Fuels company will invest up to 214million in renewable energy initiatives over the next three years. The virgin tycoon, whose empire includes air and rail services, said it was important that transport groups were at the forefront of developing 'green' fuels. The first deal saw Sir Richard backing California firm Cilion, which will make bioethanol -a sugar-based fuel - from corn. The state already uses biofuels to run cars. Sir Richard said it was 'only the biginning' of an investment programme that would be extended to the UK.
source: Metro news paper.
GTL will produce 50million gallons of ethanol within three months and to increase production to 100million gallons. please do your own due diligence.
Best luck.

deleted

robertalexander
Try again?

driver
i deleted my post as it was absolute drivel. this what you get for posting first thing in the morning

Alex

robert
I dont mind drivel thats all I ever post.

I wouldn't mind a breakout in the price any time soon - the sp appers to be going through a strong downward movement.
Hopefully some news on the plant will deliver my hope.

G D Potts
I agree the only conciliation is you can accumulate if you can afford to.

with oil prices dropping, alternative fuels have less appeal for they are currently (I think) expensive to produce ...... long term they have a future for sure

driver
i accept your view ie accumulate but i prefer the word AMASS even though they mean the same thing.
To amass is to gather into a heap; to collect together, to accumulate.
should be amassing more? YES INDEED.

cynic Re oil prices
What goes down must come up.

so you are still buying into SEO then? ...... though re oil, i concur though may not be for a month or two or perhaps (much) longer

cynic
Small top ups along the way the captains back now so SEO should be OK from here.

cynic, driver - can we please keep mentions of SEO away from this thread. Don't wish to curse it. ;-)

StarFrog
Sorry Star but you know SEO will come good in the end so no curse intended.

Hope so for your sake driver (and others)

the captain of SEO? ..... hope he'll do the honourable thing and go down with his ship then