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/

share trader
There could be a cash call in the distant future to fund further plants but as I see it that would be long after production has started at this plant and the revenues are flowing, so there is no reason for the sp fall IMO a good time to top up the chart is seeing a double bottom at the moment, up from here.

driver
spot on. now that we heading toward production, any drop is nice for buying and the risk level is reducing plus the experience of Richard Ruebe. I think that's a smart combination.

whats the production early next year sheeeeeit

as far as i know its l8t this year i.e. dec and i think that was said in the interims or am i wrong

deadfred
Are you on the right thread?

GTL are due to start producing large quantities of ethanol by the end of 2006 or early 2007. The plant once operational will have the capacity to produce a minimum of 50 million gallons of ethanol per annum increasing production from 50 Million Gallons per annum to 100 Million Gallons per annum at a later date.

I hope so, is the September update out on the website yet?

G D Potts
No updates as yet but we should get an announcement on this soon.

(29/06/06) Announcement
GTL, the project development company focussed on Ethanol production in the US, today announced that it has applied for permits to extend the production capacity of its plant at Rochelle, Illinois, from 50 Million Gallons per annum to 100 Million Gallons per annum. The directors expect the permits to be finalised in Q4 2006. The commencement of subsequent construction to increase capacity at the plant will be announced in due course.

And everything is on schedule and on budget or should i say everything is on a share propel GTL. lol

The matter has become serious and if you hate flying get off now but if you are eagle spread your wings. lol

driver was posting on what i thought someone had said

i.e. production was due 07 when it should be said that production is on course for 06 and maybe even earlier than dec imho

d fred
GTL have stated that they will be delivering revenues throughout 2007, so if the plant is up and running in Dec or early 2007 makes no odds. At these levels its a good time to top up IMO.

Morning Driver,
I topped up again this morning (106403) but they showed as a sell.
Giggin

JWAsh
Welcome aboard its at good price this late in the game with the plant nearly ready for production the sp looks like its hit the bottom so a good time to top up. The Web Site should be updated soon may give the sp a bit of a lift.

You can buy at 2.12 online so nearly all buys so far today.

market doesnt seem to like it despite the positve remarks!! im in btw.

Its a waiting game the plant is on schedule it will be producing ethanol and revenue in 2007 now is the time to buy or accumulate.

8% drop today seems many think its the time to sell!! i dont understand this game some days.

Kivver, i know what you mean, if I had some funds I would get some more @2p

What is the cash position of GTL?

Is there a fundraising coming I wonder?

the oil price is falling so is all share in the oil sector, i think one should pay attention to FT all share oil index. the market is always looking forward but the oil price will rise again. i mean next summer for sure at least. if nothing is wrong with the business itself then one can afford to buy more if he or she wants to. Most share do fall from september to December. it is bit boring for me except when one is shorting or buying some excellent values

Andy
Further fund raising may take place in the future if they expand (see below) I dont see that as a problem a 10 bagger from here at least.

by: Timon Day
GTLs mega fundraiser (Shares Mag)

Hugely ambitious plans are being hatched to make GTL Resources (GTL:AIM) the largest ethanol producer in America by spending 400 million on
five new plants. Its first plant at Rochelle, Illinois is nearing completion and is expected to be in production by November, making 50 million
gallons a year. A second plant will almost certainly start construction within a year and will double output to 100 million gallons by Spring 2008.
But this is thought to be just the beginning of GTLs grand plans. Ethanol has doubled in price over the last two years to $3 a gallon about the
same as the petrol it replaces. Ethanol currently receives a 50 cents a gallon tax break but even if this is trimmed back to 30 cents in 2007, it would still
leave the green fuel additive highly profitable. GTL reckons it can produce ethanol at around $1.10 per gallon as long as corn from which ethanol is extracted stays at around $2.20 a bushel. This would mean GTL making money as long as oil prices remain more than $20 a barrel and highly profitable if it stays at the current $60-$75 range. Profits from its first plant will be around treble analysts forecasts of $8 million to March 2008 if prices remain at current levels, slashing the shares prospective PE to around six on an untaxed basis. Consequently, every man and his dog are scrambling to build ethanol plants. GTL reckons it has the edge being one of the first listed companies, as opposed to farmers cooperatives, in the sector. It is close to buying three new sites in the Illinois wheat belt and production at Rochelle could quadruple to 200 million gallons a year. In total GTL might make a total of 500 million gallons a year or some 7% of estimated total US production of 7.5 billion gallons ethanol by 2012. Other records could be set if GTL persuades its key shareholders to stump up nearly 150 million equity, compared to the current market value of some 80 million. The rest of the 400 million needed to build the plants would be borrowed. The money could be raised late this year either on a groundbreaking deferred-payment basis or through a revenue-sharing agreement.