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/

GTL as I understand is in profit and appears to have a good sound base for moving onwards and upwards,its been a good few weeks now and still the SP is not moving . To buy or not to buy at this stage,any thoughts welcome.

yes ... see above! ..... US only makes noises about going green but actually does nothing meaningful ..... oil lobby is too strong!

CHESNEY - different side of the arguement - U.S major push on ehtanol at the moment and in the future, GTL perfectly postioned to benefit.
Its rival Renova - RVA - has a market cap of roughly 10 mil more than GTL althouhg its only producing around 20 million barrels of ethanol P.A, GTL Will soon producing 50 million, forecast to rise to 100 in the not to distant future.
And for the ultimate long term GTL plans rapid construction of more ethanol plants around the U.S.
STRONG BUY. (No need to reply Cynic).

chesney
This is the expansion potts is talking about.

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.

Many thaks to you all for the info,

1.75 million just gone through up 0.8!

Nice bit if buying today.

its one way only and thats up up up it carnt be stoped, good luck. not that we need it.

you just canot fail to make good money on this one, if you are willing to wait.

well thats what many thought with BFC - there's always, always and always a way.

think lucky be lucky thats my moto.

I'm tempted to top up, but it is quite a volatile stock, i hold 13,800 shares which isn't that many but if i doubled my money i wouldnt complain.

ghj - Golden rule: If you are not sure, but can't afford to lose it if it goes wrong, then don't do it. GTL has potential, but with it comes risk.

or if you think its a strong stock then, w.buffet like, invest all you possibly can.

I'm very tempted to top up as well, i have 100000 in for long term,i can only see them going up.

lots of buys getting bigger.get on now.

Just bought 40,000 shares after reading that the plant should be up and running in December which is excellent news!

5 million buy just went through that's 15 million on the day large buys!

just bought another 50000, looking to buy more, if i can more money.

may well find some resistance against that falling 50 dma