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/

A news release from Tate & Lyle may explain weakness in price, didn't know they were involved in Ethanol.

Sugar producer Tate & Lyle PLC said it expects 2007 ethanol margins to be substantially lower on higher corn costs and lower gasoline prices, and that it is unlikely that sugar prices would recover in 2007 due to oversupply concerns.

The company, however, said it expects the total sweetener margins for 2007 to be higher as anticipated and forecast higher total net margins on value added food and industrial ingredients.

Tate & Lyle said there was a small loss in sweetener volume as it sought to increase margins in a rising corn market at the end of negotiations with the Food & Industrial Ingredients, Americas, for its 2007 sales contracts.

The pricing round for Food & Industrial Ingredients, Europe, is at an early stage and Tate & Lyle has made satisfactory progress to recover higher raw material and energy costs, the company said.

The volumes involved in these price slides are tiny! 12k traded today. Still, if I fancy topping up at least I can do it for 2 a share!!

Annoucement 20th December - Which shows the big investers are still holding.

The Company announces that it has been notified by Citibank, N.A, that a
previous notification made to the Company in relation to the holding of Standard
Life Investments incorrectly stated that Standard Life Investments had sold
471,682 shares in the Company on behalf of Standard Life Group. The Company has
been informed that no such disposal took place and that the total number of
shares held by Standard Life Investments is 1,520,507 ordinary shares of 1
each.

Grim..sp going down ?

skyhigh

No worries, no news = drifting sp = top up. News = sp surge = hold = profit. = Drivers tip buy low sell high.

Lots of stocks are down over the Xmas period, even on low volume. It means nothing, imo, except that profit is being taken.
Sit tight & wait for the markets to start trading in earnest in the New Year.

i dont see who could possibly be profit taking on GTL at these levels harrycat

On the positive side, their was a much more positive afternoon in regards to trades as their was in the morning.

Fair point as far as GTL is concerned, GDP, but my comment was a general one about the market trend.
However, sells outweighed buys today by 3-2, so someone is either taking profit or taking their money elsewhere.

Looking pretty bargainous at the moment, it has to be said:

GTL Bid: 175p Offer: 195p Change: -5

spread's possibly a bit big though.

Just topped up at 190.8. Don't be fooled by the larger spreads on the indicative quote . . .

I think i will top up on Wednesday morning, have a good xmas guys and gals.

ghjones2

I think I will have to join you, with a little top up. Merry Christmas.

December is fast running out - would appreciate an RNS to show company hold to deadlines expressed!

cynic blows the largest raspberry possible ....... any takers for a wager that GTL will NOT come up with any meaningful RNS before year end?

cynic
No, theres no point rns now or Jan it will not make any difference when the announcement is made the sp will surge.

thoroughly agree ..... merely responding to laurie

Operations started !!

I'll take your bet cynic

Darn, too late!

Even as we were chatting they had started, but much happier now!