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/

Laurie
Yes cheers good stuff and a nice bit of blue.

FWIW it's still silly volume. Omly 39k traded. Nice to see it moving in the right direction, though!

http://www.moneyam.com/action/news/showArticle?id=1830754

Demand for corn driving up meat prices
AFX


WASHINGTON (AP) - Strong demand for corn from ethanol plants is driving up the cost of livestock and will raise prices for beef, pork and chicken, the Agriculture Department said Friday.

Meat and poultry production will fall as producers face higher feed costs, the department said in its monthly crop report. Ethanol fuel, which is blended with gasoline, is consuming 20 percent of last year's corn crop and is expected to gobble up more than 25 percent of this year's crop.

The price of corn, the main feed for livestock, has driven the cost of feeding chickens up 40 percent, according to the National Chicken Council. The council says that chicken, the most popular meat with consumers, will soon cost more at the grocery store. The industry worries the competition from ethanol could cause a shortage of corn.

The average price of corn, unchanged from last month, is $3.20 a bushel, up from $2 last year.

For soybeans, analysts said prices are averaging $6.30 a bushel, up from last month's average of $6.20. Last year's price was $5.66. Wheat prices are averaging $4.25 a bushel, unchanged from last month and up from $3.42 last year.

Also in the crop report, the department updated the citrus forecast to include the effects of a January freeze on California oranges. The California crop will be 39 percent smaller than last year, and combined with freezes that are expected to reduce the Florida crop, the nation's crop is expected to be 18 percent smaller than last season.


And of course increased corn prices means more expensive alternative bio fuels which equates to a problem for manufaturers of said fuels.

put in an out of hours trade tonight, think we'll see a surge too 300+ in the next 6 months.

bollocks!

such eloquence! :-)

succinct!

6 month period averaging 30 days per month
8 days a month are weekends
that gives 132 days of trading
i need rise of 135p in that period to be right
equating to a rise of 1.02272p a day
and considering both how quickly GTL can move and it's underlying fundamentals i reckon i shall be quoting your post and laughing.

cynic
This is going to 300p and beyond or I wont be in profit long-term target 800p

I am posting this after some pillock dishing the CEO on another site. Having had a large number of e. mail discussions with the CEO he was just as pissed off as us. And asking advice of Morgan Stanley as to problem.
Morgan Stanley answer I did not agree fully with and hence website update and the below together. Website occured late on friday as I have explained already.

I don't know because I have written to my Board this morning suggesting we make a major announcement next week which should dissipate the share overhang and be received positively by the market.So not sure whether we combine this the the performance update or post the latter on the website later this week.my view is we should do the website separately on wed or thurs. If you don't hear from me that's what will happen

RNS first then update website in my view, but just do it if there is something to say, particularly performance update.

I have noticed a few occasions recently where firms have announced on their website first. In fact GOO (Gold Oil) have just done it.
Personally I like the plan as it allows regular holders to get the information and use it prior to the traders.

Any of you playing champinvest?

Driver - hate to hassle becuase you have done such a good job already but do you reckon you could upload a grpah for gas prices? Also maybe a picture of GTL's completed plant not the building site that currently occupies the header (It could replace that massive GTL Resources sign perhaps?)

It's just I read 'uses approximately 1.5 million Btu of natural gas', sounds like another important input along with corn etc.

Thanks.

Potts
New Plant now in the header, Why gas prices?

http://futures.tradingcharts.com/chart/NG/M

They use 1.5million BTU to dry the Distillers grain and some in the production process so I assume that its price will have a failry signifcant impact on GTL's profitability.

Potts
The price would vary on where you are and how much they pay so it wouldn't be accurate IMO.

Well that's nice just went to buy and they lowered the price for me.

If you wait a bit longer they may drop it quite a bit more yet to say 50p.

Corn is going on cheap sale now. It causes wind.