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/

Gents, I am looking to understand a little more about the effect of share consolidation. The week before consolidation GTL was priced at around 2.35p on average. Post consolidation (100:1) the share price has been hovering about 201.00. I equate this to a 'drop' of 15% (assuming 100:1 equates to 235.00p). Is it common for stocks to 'drop' on consolidation or are there others factors at play.

Thanks in advance for any feedback.

it would be nice if the plant was announced operational before chritmas closing days etc as it looks like the market's in a good mood. Lots of blue'
could be recieved better than say if everything was going down like it was a few months back.

Darradev
Yes some times they can drop after consolidation but not always, in GTL's case it could have been punters getting out of a penny stock because they didn't have many one investor on another site complained he only had 30 shares so he sold them if you look at the trades over the past week there are some small amounts being sold off.

The other factor here is waiting for a delay announcement that will knock the sp temporary giving a top up opportunity.

Driver, I don't think it was consolidation that caused the fall, it was SL dumping 30% of its holding.
Looking at all the work still going on I don't think the plant will be open until next year.

they've already said that poldark - something like plant open in december but the contract scheduled for finish , (Builders), was jan 07.

poldark

As was said earlier Standard Life properly dumped some stock may be to pick them up later at a cheaper price as they saw the sp falling they still hold 6.697% of the company. Yes I agree it would have also have knocked the sp.

GD - it was also said that they were ahead of schedule, and a plant may be operational when building work is still going on especially if it is for storage buildings or areas that are not needed immediately. But like you all i'm looking forward to a healthy rise around xmas time.

Is anybody going to be brave and speculate the % rise.

I'm going to go on the basis that AIM stocks can move very very quickly such as Renesola last week which doubled on news which is going to be less significant than this, but i would take a guess at a 40% - 50% rise over a week long period.

Although this would only take the share to 3, which it has been at less than a year ago (or 3p at the time) i would presume that with a few contract wins and when production gets fully operational and if news comes out that it will expand could knock it up even higher.

If i am right then i will be very happy!

Thoughts?

similar to you GHJ but see more of a 70% rise over 2 week period dependant upon how the market is doing in general on the opening day, but you never know, maybe it will rise 2% !! - my only worry is that GTL has not already won contracts for its output as was the case with Biofuels etc, maybe its a different scenario with ethanol im not sure, any ideas?

GDP, I would hope that with ethanol being pushed the way it is, there will be plenty of demand for GTL's product. The market this year has been very buoyant, so they shouldn't have too much trouble selling, even if they sell on the spot market.

SP prediction: 3 once it's clear that the plant has passed its acceptance testing (hopefully by end Jan). Then fasten seatbelts once it starts to show in the financials.

more buying today as plant gets closer to opening.

When start of production is announced, beware of the Bear Trap.
Ethanol stocks have started to rise again after a sharp fall last week.

For the less educated among us do you mean a bear trap, as being the rise from the plant opening will encourage lots of people to sell and therefore that will affect the price also?

ghj, what the MMs usually do is raise the price a little at first then raise the price higher sucking people in. Then when the buying stops they drop the bid by a large amount trapping the people in.
A lot of people are betting the price will rise 10-20% when the plant opens and the MMs will play on this. One of the problems with buying into an AIM company.
After the first rush I think we should see a steady rise in the price next year until we get valuation in line with our peers. I would like to see a listing on the NYSE.

Spitfire43 - remembering my letter to shares, maybe they should have swapped CFU for CWR like i suggested, Ceramic up 14% today Ceres down 4%.

I wonder if Share Mag are waiting to place GTL as one of tips for the 2007 portfolio. It would be perfect timing for them.

New charts in the header.

hello driver , nice thread ,heading concise and some sensible posts , good luck to all holders.

mr.oz
Cheers oz you can pay us a visit any time.

ive got a good feeling about tomorrow

So far no buys above 2.03 and their showing as sells so no surprise the sp has dropped.
Just waiting for the big news!