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/

I agree with you Silver. Except, since I'm feeling somewhat pugnacious today, I'm going to say that by the time the results come out this SP is really gonna K some A!

EDIT I'm feeling that way because CBOX has had possible takeover interest. :o)

Ethanol price still crawling towards the 200-mark as well :o)

alex57
Welcome to the board. My average is 300p and not worried this will move when we get results we know that they are going to make a profit year in year out so relax it's only a paper loss at the moment until you sell.

OK, will settle down and wait. Happier now as S/B's on tesco, cle and tate all look good.

FWIW Every one cent increase in the ethanol price ought to mean a 250,000 increase in operating profits for the IRE plant if they produce 50 million gallons per year (assuming current corn hedging remains in place and no increase in the corn price paid in respect of unhedged requirements).

so from a reflecting point of view, every 1% rise in ethanol prices should mean the company is valued higher and the share price should bump itself up.

It seemed to have no problem in dropping over the past weeks when the cost of ethanol dropped!

Do those graphs on the header ever change? - the dates change yes but the graph seems to stay the same

GHJ, that's what nerves do for you - people still want proof of profitability before they get in!

GDP, a watched graph never climbs.

Potts
All graphs in the header are active the ethanol graph is looking good it's going up.

And corn is going down.

Should we have a $4/$2 party?

I seems to remember its being at 1.980 for a jolly long while on that grpah - although i dont deny that the line is going up/

GDP, I thought it was 1.97 yesterday. Or the day before.

Perhaps we should log on at the CBOT and speculatively ramp a few ethanol futures to drive the price up. I mean, Dubya only wants 7.5 billion gallons by half-past lunchtime, so we should be in with a chance.

Potts
Was you in Hog Warts or the other one "jolly long while"

Pic removed from above post I found a pic of Potts instead.

is he the one on the far right? ...... or is that one of Attila's offspring?

cynic
Can you pay a visit to drivers tips.

yes thats me cynic

Topped up at 197.25 today.

Was looking at some new investments, but the GTL newsflow and situation with GTL/Ethanol was too compelling to ignore.

New plant passing acceptance test, and receiving first revenues.
George Bush commiting the USA to reduce oil imports, and increase Ethanol production.
Morgan Stanley appointed as Nomonated Advisor.
Oil price rising towards $60 a barrel.
Two positive articles in Share mag this week.

Need I say more.

Spitfire - Wish I could be so positive (and I'm a holder) - I personally think we'll be in the 1.80 - 2.10 range for quite some time yet. It will take full year numbers, and a view of protected margins going forward that will propel this one imo. There is a question over cashflow and the extension of production capacity, so knowing the margin achieved(able) is crucial.

Flackwell Vialli

You may be right about the 1.80 to 2.20 range for a time yet, in the short term its hard to predict. I always have a stop loss and a price target on all my holdings, apart from GTL. I take the view with this one as a buy now and tuck away for the future.

I would hope to see impressive returns and much clearer picture after finals in August. I must admit I would be surprised if price hadn't moved up some time before finals.