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/

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

can't get lower than 210 for a Buy today, thats dissapointing.

share price at 2.04 is disappointing, especially as pre consolidation it was 2.30 and since then the plant has opened!

typical case of anticipation followed by arrival!

hopefully arrival will be soon!

Link from the other side

Bush readies speech on ethanol, climate change
Wed Jan 17, 2007

http://today.reuters.co.uk/news/articlenews.aspx?type=worldNews&storyid=2007-01-17T143433Z_01_N16234366_RTRUKOC_0_UK-BUSH-ENVIRONMENT.xml&src=rss

Sounds Good

pg.9 shares mag today spells bad news.

But they pick on GTL considerably
"The key to survival is balance sheet strength, GTL, valued at just 3 million, owes a seven figure sum to its bankers" quoting from Shares!!! What a joke. Do they not proof read?

Quite so. GTL's net assets, according to the Interims, are around 19 mil, and they had cash of $8.6 mil at the end of the reporting period.

However, the prognosis regarding the corn price could still be of concern.

Hopefully PHC/Plant health carecan solve that problem

and perhaps for once a rise in price would be nice!

Have to say sentiment appears negative towards ehtanol producers at the moment - Could be a bumpy few months,

GDP - agree re PHC/Myconate - could be very interesting, but unfortunately not until around 2009!

yea i was just trying to pump some hope into the flailing shareholders - but seriously what they're doing sounds pretty impressive.

flailing? everyone is leaving. i however tried to be clever last night and topped up at 198, since then dropped nearly another 5% today.

Well I don't think thats a bad move, anything under 200 is a good buying opportunity.
It's just Corn! GTL will announce reaching their nameplate capacity though, Shares will correct thier horrendous commentary on GTL today, Revenue will start flowing, foward contracts for output announced, corn drops back as farmers fight to make more money, ehtanol rises as Bush encourages its use (By the way anyone know how that went today?) and the S.P. will scale to 300+.