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/

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.

A protected transaction.

You can look up terms in the help list above or on Drivers list.

.

cynic
http://www.moneyam.com/help/?page=trades

0.08 up we could see 2.5p today! IMO.

I have been posting on the RVA thread on the other side it looks like they took my advice and switched to GTL.

Very large volumes going through GTL will have to make an announcement.

2.5p at last interesting to see what happens next. The big purchase or equal just sold 55 million.
But now GTL is on the map.

laurie
Well done you called it right 2.5 it is.

why is an announcement required? ..... sp only moved 10% ...... 55m buy/sell was prob just moving shares from one hand to another

And back again?