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/

why?

cynic
Why not?

because there is no logical reason at this time why sp should improve or at least not significantly

cynic taking a negative view - surely not?

or a balanced view, perhaps?

thank you silvermede ...... there is just so much hype and nonsense on this and other BBs, that all too often common sense is scoffed at because it does not "suit"

Reply back from GTL to firm actual date in December.

There is a lot of work involved in progressing the plant up to nameplate capacity and during this period plant staff will be concentrating on this rather than civic events. For this reason official openings typically occur 3 months after the first gallon of ethanol is produced. The benefits of such events are not underestimated but they will take their correct place in our order of priorities.

none of which has any real significance to sp or value of the company

laurie
Cheers

cynic I don't see any evidence of hype on this thread we have all been accumulating over the past year waiting with patience for the opening day and for the sp to rise above 10p oop's a bit of hype.

driver .... it was a generalised comment, but no less valid .... but to repeat ..... there is no logical reason at this time why sp should improve or at least not significantly

oh i don't know , corns dropped $6.5 but hey who cares

cynic
Could it not be that the day of opening is approaching and punters are finely waking up that they better get on board before they miss the train.

Cynic driver is right - and its glaringly obvious why the SP would rise signfiicantly - if you hold shares then surely you should know that and so stop trying to take the other side when there isnt one,

just because GTL opens the door on its new plant is no good reason for sp to rise to any great degree ..... only sales and problem-free significant production and upward trend towards profit (a few other things too) give impetus, rather than a bit of short-term excitement and hype

cynic
There may be a few production problems but I see no reason why they can't sort it out what ever it is, they have just built a plant a few teething problems won't cause any stress to them or us. The fact is GTL are heading towards opening with that comes revenue and profit all good reasons for the sp to rise.

in principle you are right..... however, until such a time as they really get their production going etc, and their results show they heading at least towards profitability, any excitement in sp is likely to be either unwarranted and/or short-lived

the train shudders to a stop

and then goes backwards

Again

and as i said in post 503!