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/

is this good or bad for gtl.

i SINCERELY DOUBT it ghjones

That would mean the shares would then trade at 0.0002p -

You mean a share consolidation of 100 to 1: shares traded at 2!

yeah sorry. got it the wrong way round

I'm away this week so will not be posting till next week up in bonny Scotland.

hopefully when you get back GTL will be 3p.
Shares at 2 sounds positive.

2,500,000 T. last trade.

ghjones1,
Where did you get the info on consolidation.

ive looked as well and can not find the news on consolidation.

GTL site NEWS then click on Notice of AGM

Special Business
Share consolidation (Resolution 6)
It is proposed that every 100 Ordinary Shares of 0.01p each in the Company should be consolidated into 1 new
ordinary share of 1.00 (the New Shares). Following consolidation, Shareholders will hold 1 New Share for every
100 Ordinary Shares which they held at 5pm on 30 November 2006. The New Shares will have the same rights
as the existing Ordinary Shares.
CREST shareholders will receive their New Shares on 1 December 2006. Share certificates for Shareholders
holding ordinary shares in certificated form will be despatched on 7 December 2006

There is a typo in their statement:

It is proposed that every 100 Ordinary Shares of 0.01p each in the Company should be consolidated into 1 new ordinary share of 1.00

They do, of course, mean every existing share of 0.01 (1p).

Not sure that I like consolidations, have always tended to loose out in the past.

The reason is usually to attract the bigger institutional investors who tend to shy away from 'penny' shares (I know that there are big investors in GTL already before anybody tells me) and also to help narrow the bid/offer spread. Perhaps it is a good sign. Maybe they are expecting more volatility in the sp as they approach production and want a higher nominal share price to reflect this + the pyschological aspect of having an sp in the 's gives credability.

I am surprised at the 100 would consider 10 would be more realistic so will wait and see.
I am confident in this company so have little choice if it is passed.

I'm a newbie to the investing game and was interested in investing in GTL. If I was to buy 100,000 shares and with the consolidation coming into affect would there be any point in investing as what would happen to my holding??

I would appreciate any feedback. Thanks.

I work at a stockbroker, so official docs come through me first ;)

and nothing would happen to your holding in terms of value.

Theoretically your holding would decrease in number of shares by a factor of 100 and at the same time the value of the stock should rise by 100, so shares would be worth 2.25 each insted of 2.25 pence and you would have 1,000 shares instead of 100,000

A share consolidation seems to have worked for COH, in that it didn't have a detrimental effect at all.

ALSO look at the share consolidation @ isys,its done that good!

this is getting a bit boring.

I agree with you there!

The more interesting bits at the AGM will be resolutions 7 & 8.

40% of new shares can be issued and they don't have to offer them to existing shareholders (ie us!) if I read it correct.

So our holdings could be diluted while the institutions will pick up cheap shares? Cynic? Moi?