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/

though i continue to hold, i do have very real concerns that the spiralling price of maize futures will have very deleterious effects on GTL's profitability

cynic
The price of corn has been coming down over the last few weeks not going up.

Tuesday, January 9th, 2007

Fund selling trips-up Corn rally: Corn futures took it on the chin this afternoon, as a commodity wide sell-off tied to speculative liquidation weighed on the market.

http://etvfutures.com/futures/Text/ShowStory.jsp?id=10613

And I believe that GTL have already hedged their corn prices with the Farmers collective for the next few years. (Or something along those lines).

Anyone brave enough to hazard a guess at what level the share price will be on 31 Jan 07.

I'm going to go for an optimistic 2.80.

If all announcements etc on Schedule - 255

300p thats my break even or am I being optimistic.

in just 2/3 weeks? ...... 230 if we're lucky

cynic
Where's your optimism

wow !
Not sure how anyone can guess what level anything can be in this rubbish market. Aim/sm cos. overall continue to go down...my portfolio has taken another battering today. be nice if it was 2.8+ let's wait and see!

What the hey, may as well have a guess too - but for the record I wouldn't bet more than a round of drinks on this (Driver, would you mind fetching a large jug of Ribena? Thanks).

266p if everything goes smoothly with the production increase, etc.

FWIW I notice that RVA has dumped 30% in three months; however, someone hopefully ought to realise that GTL is worth more than RVA so I'm hoping for an ambitious 60 mil market cap. What's the likelihood of RVA bouncing at 150p?

driver .... i am optimistic that with a lot of hard work over the winter i can bring my golf handicap down by the end of the summer ...... howver, though i hold GTL, i have considerable long-term concerns that their production is based on foodstock (unlike DOO) and are thus somewhat hostage to maize futures and similar

skyhigh ... sorry to hear your portfolio has taken a battering today ..... confess i actually have a smile on my face, not unconnected with strong rise on Dow

RNS out yesterday; UBS still adding to its stake (it was them that bought another 100K the other day).

GTL Resources PLC - Notification of Interest
RNS Number:3511P
GTL Resources PLC
11 January 2007


For Immediate Release 11 January 2007


GTL Resources plc
('GTL' or the 'Company')

Notification of Interest


Section 198 Companies Act 1985


Pursuant to Section 198 of the Companies Act 1985 we write to inform you that as
at the close of its business on 8th January 2007, UBS AG, acting through its
business group and legal entities detailed below, had an interest in 1,451,476
Ordinary shares of GTL Resources PLC representing 6.39 per cent of the issued
share capital of the Company (22,702,745).


None of the Relevant Shares are shares in which UBS AG is interested by virtue
of Section 208(5) of The Act.

UBS business group / legal Breakdown of position held (%)
entity

UBS AG London Branch 1,451,476 6.39%
shares

UBS AG - Total 1,451,476 6.39%
shares


End

I still don't understand the price drops....

primarily because crude prices continue to tumble, but i think there is also a fear about the long term rising cost of maize used for production

Does anyone have a source of maize prices?

Mustn't forget, thoough, that there must be some kind of forward contract in place.

Plus I think that market forces and even legislation may have a part to play in bringing some stability to the picture - aren't hundreds of farmers in the US being subsidised for growing nothing; they could be "persuaded" to grow maize for fuel.

Maybe you could whip up a graph on the title of this thread to ease Cynic/Soul's worry's driver?

The live corn and ethanol graphs are already in the header or does it only work on my pc

driver's charts are indeed present, but unless i have misread, these relate to the daily price and not to futures contracts etc ...... which takes me back to DOO, which i feel ought to be doing great things (production from non-foodstock source) but patently is not .... or at least not for the moment