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/

And recovering slightly:

GTL Bid: 2.25p Offer: 2.4p Change: -0.05

Results statement says that they are taking their time over whether to build more plants. This should please the market. Less uncertainty.

Highlights


Construction of Illinois River Energy ('IRE') 50 million gallon ethanol
plant progressing well with plant startup expected in December 2006
IRE plant capex plus initial working capital is expected to be within the
$80m budget
IRE plant staff are in place and their training will be completed in
December 2006
Applications for permits to increase IRE capacity to 100 million gallons
have been submitted
Appointment of Richard Ruebe as CEO, GTL Resources USA Inc
Loss before tax US$1.9m (6 months to 30 Sep 2005: Loss US$2.4m)
Loss per share US$0.0008 (6 months to 30 Sep 2005: Loss US$0.0011)
Loss reduction largely attributable to UK fixed cost savings

http://moneyam.uk-wire.com/cgi-bin/articles/200611290700278690M.html

this could be mega only one way up.

Positive AFX summary, 'significant' inflationary pressures nothing we didnt already know. But i would have hoped this would have caused a spike, there's still a trading day left though.

potts
Im wouldnt worry about spikes I want to see a steady rise in the sp through out 2007 and beyond accumulating when funds permit.

Am now doubly glad I got in yesterday, seeing that the SP has moved up to cover my purchase price :o) GTL Bid: 2.3p Offer: 2.4p Change: 0.025

Volume traded is a bit on the low side (800K so far), although I guess much of the news in the statment had already been anticipated.

Looking forward to the plant coming on-stream early December, plus the approvals of the extension to the IRE plant should also give a lift.

Soul i think we can hope, and expect, to not see the S.P. return to these areas again, (Apart from the consolidation), and buying opportunities will hopefully become around the 2.5p mark and higher.

soul traders "much of the news in the statement had already been anticipated".

I think the bit about them taking their time about new sites is new. This, imo, is the best bit of news in the statement. There was a lot of uncertainty about new sites and how much they would have to pay, possibly over the odds. Now that has been put on the back burner we should motor into next year! I reckon that the board has been as shocked as anybody by the low share price and now realise they can't simply raise shedloads of cash without proving themselves first.

Good point, Bolshi. I am convinced, or at least optimistic, that the SP is due a big re-rating. If there is any kind of justice in the universe then the mkt cap ought soon to outstrip that of RVA, which is currently bigger at around 77 mil, but producing much less than the intended capacity of GTL's first plant. So December to January's activites ought surely to produce a 50% SP rise in short order.

GDP - I am sure you're right, although why the consolidation should produce a drop in the SP is not clear to me. I would anticipate the cosmetic transformation from a penny stock, plus hopefully, and more materially, a possible narrowing of the spread, would attract the attention of more insitutional investors and produce a rise.

I agree - and am happy that for the first day in a while every stock in my portfolio is showing Blue.

LOL - lots of (in my case) green on my portfolio too!!

7 Million + sales just gone through.

Potts blue are nice the last few weeks were superb, but this week has been horrific.
Today so far mixed red and blue on my portfolio.

gdp im not worried about dollar to pound ratios as i look at it like this the sooner were debt free thw sooner we can get more money for bigger plants all over the world

also if were closer to being debt free there will be take over attempts imho
so use what we dont get to pay off the dollar loan quicker imho

Tom Winnifrith of t1ps has re-iterated speculative buy for GTL. DYOR

silvermede: Was that on his TV thingy?

All those lovely blue arrows turning to red why?

Simplest phrase MMs.
They just had a 2.5p bid for GTL and dropped the sp?

A few big trades going through. Not much to worry about, of that I am sure.

GD and Soul traders

charlie, from the other BB mentioned this point.


One of the few companies listed in UK but operating in the USA
that benefit from the strong pound........all Capital Expenditure
is in sterling!!!

But when comparing with it's peers in the US and the forecasted figures that have been stated, US $ has been used.