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/

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,

A share consolidation is very common, the value of your holdings will be the same, it would be highly unlikely that the share price would effected in an adverse way.

Some investors who only buy penny shares may not buy, but I think the majority wouldn't touch penny shares. So the outcome I'm sure will be positive.

listen all im saying is this the new shares will be 1 squid value when it stars but
the current price would indicate that the new shares will be around the 2-2.30 range when they are issued

now say the mm decide to slap this down to 1.5p-1.75p and you bought in at say 2.1p because of consolidation then you would be 26-60p down as the new shares are issued

remember the word" because of the consolidation "as for the life of me i cant see why this share aint flying bye now

so you can shout no lose but technically you are in my opinion

id rather have a 10p rise at 500k than a 10p rise of 5k anyday slight diffrence to me of 45k i belive

everyone that says this is a good move in my opinion has alternate motives(just an opinion) as for the life of me i cant see why they could not wait till feb march to do ther consolidation either way it would have no effect accoreding to some of you lot

just my opinion

ok opinions out the way deadfred is the FACT that no value will be lost otherwise why would any company's shareholders agree to do so.

If you see GTL going to 8p next year there will be no difference only that it will be 8 a share instead of 8p.

Renova Results just out, comparing their ethanol production for six months at 2.4 MMgal and their M/Cap it does make GTL look cheap, or am I missing some thing.


Average daily production from the old plant prior to decommissioning on 11 July
2006 was 13,721 gal/d (2005: 14,084 gal/d), which was equivalent to 100% of
name-plate capacity despite some disruption during this period due to ongoing
construction work. Following a shut-down period of 5 weeks whilst the final
tie-ins for the new plant were being completed, production from the new plant
commenced in August 2006. Average daily production during the start-up phase
through to 30 September 2006 was 20,403 gal/d. Total production for the six
month period was 2.4 MMgal (2005: 2.6 MMgal).

http://miranda.hemscott.com/servlet/HsPublic?context=ir.access&ir_option=RNS_NEWS&item=37628208529715&ir_client_id=5028

Doing a strait comparison with Renova's present production with our future 100Mmgal we will have a 50+ SP in new money next year.

After Share consolidation GTL will have 22M odd shares in issue compared to 27M odd shares for RVA and with hopefully GTL achieving greater production. Consolidation looks a positive move to me.

silvermede
What's more important is to compare their M/Caps GTL Market Cap 49.38m TO RVA Market Cap 74.07m

Driver: Yes absolutely right & thanks.

Renova compared to GTL

Renova's production 2.4MMgal for six months * 2 = 4.8MMgal for the year if you times this by 20 you get 96MMgal GTL'S Target,

Renova's M/Cap is 74.07m for producing 4.8MMgal for the year if there production goes to 100MMgal a year then their M/Cap should be 1480m

GTL's Market Cap is 49.38m, so put it at 1480m for 100MMgal a year divide by 22,702,745 shares gives you an sp for GTL of 65

Hopeful driver - but a valid point, correction on the way for RVA maybe? and at the same time GTL?

56 million just gone through @ 2.17?
First thought it's buys but not certain!

Was going to ask same question about 56 million shares, shows
2.18 as price, earlier purchases were at this level so I can only
guess its a purdhase.

Buy or sell its looking interesting it didnt move the sp so someones getting into position for start up and full production, or may be read my earlier post of 65 a share.

what is a "T" trade?

cynic

T If reporting a protected transaction.