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/

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?

cynic
Possibly but it was a big percent of the company so we may get an announcement.

Looks like the trades were sales now, can't imagine company would make annoucement with just 10% movement.

Nice to see significant increase whatever the reason.

spitfire43
If the trades where sells we wouldn't have seen a 10% rise we may get an announcement on the volume of trades not the percent it went up, i.e. who sold and who bought.

driver
I agree just re-checked the first large trade 56m at 2.18p doesn't state but looks like purchase, and second 54m at 2.18p stated as sale. So yes could be a notification of interest.

The volume today seems the largest since May 2006 which peaked price at 3.78p soon after.

As I have nothing better to do I thought I would compare GTL with Renova.
.

-------------Renova ------------------------------GTL

Price-------- 2.30 --------------------------------2.4p ( 2.40 Consolidation)
Market Cap-- 70m --------------------------------49m
Gearing------ 11% --------------------------------Minus 52% with 6m cash
EPS--------- 2.5P --------------------------------Minus 0.01P
PE----------- 91 ---------------------------------Minus 306
PE 2007 ------25.72------------------------------ 21.75
PE 2008------ 18.05-------------------------------7.25
Production now 5m Gallons------------------------- 0
" 2007--------- 5m Gallons------------------------ 50m Gallons
" 2008--------- 25m Gallons----------------------- 100m Gallons
(includes 20m proposed)-------------------- (includes 50m proposed)

GTL is certainly capable of 6p a share at some stage next year. When you look at the projected 2008 PE and Ethanol production.

sit back and watch your money grow,as i said, i don't think you can fail on gtl.up up up.hold on to your shares, and if thay open another plant in 2 to 3 yers or befour, then wot share price could it be,we could be scraping for shares.after xmass.

spitfire43
Good post nice comparison with Renova as we have said over the last months as soon as production starts and the revenue starts rolling in there is only one way this sp is going and that's north.

welli hope you guys are right, as i too am a modest holder ...... i wonder if a (very) weak US$ will have any influence on the price of crude just as it tends to do on gold.

i was thinking the very same earlier cynic, surely it reflecta in the real value of oil agaisnt the etc.

Wow a 10% jump, thats good to see! gtl AT 2.4P

I have contacted the company but does anyone know what will be happening to all our odd stocks if the conversion is agreed?
By this I mean if you own 101 (1 new share + 1 old) on conversion or say 154 (1 new share + 54 old). The applied for shares does not allow for additional upgrades for each holder i.e 2 new shares.
I realise this is may be only one share per investor but they do make a difference.

you will only lose 2.40 if you lost 99 shares, so don't panic.

Yes but multiply that 2.40p by 100,000 investors and can I look after it please. The number of shares will be wrong!

have we got 100,000 investers, my be later i hope.

Will it hold/advance or drop back? +0.13p i guestimate.