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/

ghjones2
cynic is a cynic nothing wrong with that occasionally he gets it right.

not smug at all ...... i am still a holder ...... i just tend to throw the harsh light of reality on the hype ...... wish i had not been proven right on BLR this morning either ...... but did you buy SHP or PFC or PRU or SL as i have suggested; not just the voice of gloom!

nah, i was only messing, just had a bad day, no hard feelings.

no prob at all .... i never take offense; after all, i do stick my neck out quite a long way

so you wouldn't take offense if i told you it should be spelt 'offence'? lol

no need for me to be either defensive or offensive as in my defence both versions are acceptable - even in english english

Ok - Back to GTL, i dont want a stanelco thread of how was your day etc chitter chatter crap.

indeed - lol! ...... but as i said the other day - see post 503

News:
" Share Consolidation

GTL Resources plc (AIM:GTL) the project development company focused on Ethanol
production in the US, as set out in the Company's notice of its Annual General
Meeting dated 6 November 2006, is proposing a share consolidation of 1 new
ordinary share of 1 each for every 100 existing ordinary shares of 1p held. The
Annual General Meeting of the Company is to be held at 11.00am on 30 November
2006, at Kempson House, Camomile Street, London EC3A 7AN, and the record date
for the share consolidation, provided the relevant resolution is passed, will be
5.00pm on 30 November 2006 and it will take effect at 7.00am on 1 December 2006.

Pursuant to this proposed share consolidation, application has been made to the
London Stock Exchange plc for 22,702,745 ordinary shares of 1 each ('New
Ordinary Shares') arising on the consolidation to be admitted to trading on AIM.
It is expected that dealings in the New Ordinary Shares will commence on 1
December 2006."

Will be interesting to see if this reduces the spread price, I prefer the price in the 2.00 range, and would hope it is popular with the large institutional buyers. Even though they already own over 80% of stock.

I like the quantity's though, having 200'000 shares is better than 2000. Just feels like you make more when the price moves.

can any one tell me do's this meen the shares should open at over 2. a share. thanks.

Well we new it was coming and now its official 100 to 1 as I said before it can only do the sp some good and leave behind a penny stock, it didnt do DNX any harm Im still holding from about 180p some thing to now nearly 13

dave7010
No it means the previous close times 100 if it was tomorrow it would be 223p to buy.

thanks. will hold long term now.

but driver if that was the case why not open the shares at 2

bottom line is if market moves in line with the shares you lose 50% of your investment on the 1st dec

what your saying is that hopefully the market will open the new shares at 2.20
there is no guarantee

so basically your screwed

im not saying it wont open at 2.20 but it will only open if the market wants it to
i might have to bail out here and catch it as it comes back on line

just my opinion mind

Deadfred i doubt that would happen, otherwise why would anyone vote for it any where in any company (Not specifically GTL) so i really don't think we're screwed. But then again its your opinion so it doesnt matter if its entirely wrong.

From another thread to save me the trouble of compiling it. Courtesy of drewz

deadfred,

You are misunderstanding what is happening. The 1 figure is the NOMINAL value of the shares, nothing to do with the market price - the market price will be 200p odd.

Whenever a company issues shares they have a 'nominal value', usually 1p or 0.1p these days (could be 5p or 25p for venerable old companies), but it is of no concern except for the original shareholders who are putting in the start-up capital for the original shares. This is all to do with Companies Act law on how to set up and form a Limited Company, and not something you would necessarily have become involved with unless you had studied Company Law, Accountancy or set up your own company.

If a company is consolidating its 1p Ordinary shares by 100-1, then the new Ordinary shares will be 1.

Similarly when a company with shares trading at 10 does a share split, say 5:1 to increase liquidity, then each Ordinary Share of 1p will become an Ordinary share of 0.2p, but the shares will trade at 2 (10 divide by 5 = 2).

You will see this nominal figure on your share certificates if you hold any shares in paper form: e.g. Mr D Fred is the owner of 5000 Ordinary shares of 1p, fully paid, in XYZ Plc. Here 1p is the nominal value, but the shares will be traded at whatever market value the company merits.

My British Airways share certificate, for example, says the shares are for 25p each, fully paid, but they are trading at 400p odd. 25p is the nominal or original value.

Once the shares are 'floated' on a stock exchange and the shares made available to the public, the only meaningful figure is the publicly traded market price.

Hope this helps.

I'm quite surprised how much confusion this has caused... its so simple...1 for 100 shares, but no-one has mentioned the dilution of extra 22m shares, could be whats held the price back recently, hopefully this has been factored in already...

What 22 million all the existing shares will be shrunk down to the 22 million + new 1 nominal price shares.

I will admit though that although I will hold what I have long term I would not buy any more as they break my price range for AIM.

Big Ted
I don't know why we have so much confusion over this consolidation there is no dilution, you take the shares in issue now and divide by 100 and you get 22,702,745 new shares,