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/

RNS just out and conversion confirmed dodgybob resolution 6!

Now we will see what effect the conversion may have on the sp.

so am I right in thinking 2 a share tomorrow ?

Hopefully not. 2.20 - 2.30 would be more appropriate.
LOL

Resolution 8 was going to stop us having the automatic right to be offered additional shares if there is a rights issue. Am I correct? So this is good, yes?

I'm sound German - So! zis is gud ya?

I dont see a problem here I.M.O the city, punters are either unaware of GTL'S potential, not on their radar or waiting for the revenue to come in, in the mean time I will be accumulating.

smiler o
Tomorrow should open at 2.27 to buy

Good job !!:) thanks Driver

Bolshi - You are correct.

But this is not necessarily a good thing. Some times a company may need cash fast (not saying that GTL do) and can not afford the time (or cost incurred) to offer a rights issue to all the punters. Instead, they will opt to sell shares to a select few institutional investors with whom they have made a prior arrangement. This will of course all be done within the course of a day, so no need to mail out all those application forms and pay a registrar, etc, etc, etc.

I don't believe that GTL need a quick cash injection. This is just a ploy that a lot of companies do these days, 'just in case'.

Starfrog. RVA did just that. Private investors left high and dry.

If there is any rights issues in the future then we should have some of it we have been here long enough supporting this company. I see it as a good thing


Res 8 was for partial disapplication of pre-emption rights. "Under the companies Act, the Directors require authority from shareholders before allotting new shares for cash without first offering them to existing shareholders in proportion to their existing holdings"

Bolshi, driver - I agree with your sentiments. But if memory serves me, and I don't have the AGM notice in front of me to confirm, I'm sure that the sum being mentioned wasn't that great an amount.

Anyway, it failed, so that's that.

LOL

22,702,745 shares don't seem a lot, we will be scraping for them, wot when plants 2 and 3 is built and so on.long term but looks very good to me.

Dave, bear in mind that the shares will now cost 2.30 each, so your money buys just as many as it did before.

The fact that the free float is limited ought to mean that the price could rise quite quickly; however additional liquidity could come from future placings plus exercise of options, etc.

Anyway, who needs to scrape if you've bought in early and are holding for the multi-bagger? :o)

Res 8 (c) 10% of issued capital. That's a fair amount.

will gtl build ther own ethanol stations after they have 3 plants or more?

Bolshi, and Dave, I apologise if I've misunderstood your posts (can't clarify as I am unable to find the AGM articles), but anyway, it seems that some people are labouring under a misunderstanding about 22,702,745 "new" shares (especially if I think back a few weeks to some posts from that period).


My reading of the situation is that there will be no issue of new stock - I cannot find mention of a fund-raising exercise anywhere. The consolidation creates "new" shares, meaning "shares of a type that did not exist previously", rather than "additional" shares.

The old shares are the liitle ones worth approx 2.3p, which we are all currently holding. After the consolidation, these will have been melded at a ratio of 100:1 into new shares worth approx 2.30. The market capitalisation will remain the same, and there will be no placing, no dilution and no scrabbling for stock, since we all own exactly the same proportion of the company as we did before.

Don't be fooled by the bit about "application for the new ordinary shares to be admitted for trading . . . ", as this does not indicate that a placing or any other dilutive measure has taken place. It purely means that the new-look shares have to be recognised by the market so they can be traded in place of the old ones.

Hope that's clear; my apologies if I've talked to the wrong people, but some are clearly still in the dark about this.

Bolshi - thanks for the correct info. My memory isn't as good as it used to be. What with solar radiation and spawning......LOL

EDIT - ST, you read it exactly as I do.

when i say scraping, when thay find out how good gtl will become, then thay will.

This share will drop as sure as tomorrow is Friday

Why's everyone so certain?

bargain city if it does, though.

simon55. Yeh, but in 5 hours you'll be dead wrong. It'll be Saturday.

ST. There isn't a fund raising at the moment (although there will almost certainly be one at some stage) but res 8 was there to determine loosely how the money was raised if and when that issue was broached.