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/

Driver
Excellent point about RVA. In the latest Shares Mag, there is a Summary about RVA. And it goes like this
Booming demand for eco-friendly fuels means ethanol producer Renova has only started its share price ascent. Output will triple within a couple of years, sparking
more huge hikes in future.
I do not hold RVA, as my speciality is juicy little fishes like GTL. The mag writes:
The ethanol industry is entering something of golden age thanks to its environmentally sound quality. the target production for GTL is 100million gallons.

Smiler
Not easy to set price target for this one because anything is possible, and the upside potential huge. Will the sp shoot high? no doubt. i would say 7p is fair
start once the production gets underway but wait till they increase the production to 100Million gallons per annum, in my view, it will be sweet like celine Dion voice and nothing can stop the upside trend of the sp in this case. Best luck

georgetrio

thanks for that just wanted to get your thoughts on it , it is looking good driver put in some good pics ! wots up with fao ??

If any one is interested there is a lot of relevant stuff to GTL on the RVA report about ethanol and ethanol plants in the USA maps and info.

http://miranda.hemscott.com/ir/rva/pdf/2006_annual_report.pdf

driver cheers

smiler
nothing is wrong with FAO, the hesitation, the fear, the uncertainty, the mood, those are the things that we all face and sometimes we make irrational decisions.
Before, i used to buy shares when they rise but by doing so i was paying expensive prices. Now i do the opposite. The more people understand fao, the more the love. Investors like expensive shares, wait till GTL touches 10p, everybody will be buying and we will be banking some profit.

Can any1 assit?

I am thinking of investing in gtl especially when plant get up and running. Can some1 tell me how the production cpacity of gtl in 2007 affect its financials? I mean once its producing say 50,000 barrells what will this mean to the value of gtl?

jameel06
I wouldn't wait till the start of production the sp at the moment looks very attractive to me. Investors are being too cautious they want to see the product first but when they are producing I dont think the sp will be at 2.5p

This from my earlier post today.

Price wise the only comparison is RVA with a similar M/Cap and producing a lot less ethanol a broker has put a target on RVA of 500p (from memory) doubling the M/Cap of GTL and as I said producing a lot less ethanol, so we could be looking at a three bagger from here say 7.5p for starters after production starts and the revenue starts rolling in. IMO.

REFERENCE POST 161 on this thread

Correction: read shares mag dated 3-10August2006 instead of latest shares mag

COMPARING RENOVA ENERGY TO GTL

"Renova is expected to produce about 8.35million gallons of ethanol this year
up from 5.2million last year, but as the new facilities come on stream, this should hit 90-odd million by 2010, perhaps more" shares mag issue 31

GTL will beethanol producing 50million gallons of this December 2006 and an application has been made for another facility in order to bring production to 100million gallons of ethanol.

The US gets through 140 billion gallons of petrol every year and the US government has recently brought in federal laws demanding between 5%-10% of every gallon sold is made of biofuel. There is also a growing market for E85 fuel
-85% ethanol - led by some manufacturers of large 4x4 vehicles as the backlash
against gas-guzzling cars builds up. At present , the US produces just 3.7billion gallons a year of ethanol, well below likely future requirements. And that despite output more than doubling over the past five years.

So we can make a simple calculation with regards to the market cap of GTL and Renova and conclude that GTL is highly undervalued - so then we have to ask why the shares mag has put RVA in its green portfolio over GTL? i feel a letter coming on ...

G D Potts

Shares mag will select renova instead of GTL because Renova is producing and selling ethanol right now; while GTL is not, at this stage. On that note, GTL is a higher beta little fish but the higher the risk .....higher reward. NOW where is the risk? When production starts in December it would be different. 50million gallons of smooth ethanol per annum increasing to 100million. That will be very interesting indeed. From December, at this price, GTL is highly undervalued. Before the market correction, I will be buying more.
Magement must perform and kick arses till the party begins
best luck

Yes but would you not expect a leading financial magazine for the private investor to spot the potential in GTL over RVA? their is risk but you could not say that there is no risk in any of the other comapnies in that portfolio. I think it is a mistake for Shares not to have GTL in their portfolio.
Also does anyone seem to notice that the Investors Chronicle and shares seem to run the same feature as each other each week, if not one either side?

G D POTTS

May be that's where they put their money at the moment and it takes time for little fishes to come on top of the waters if you know what i mean. Good point though.

Date 11/09/06

RICHARD BRANSON'S 214MILLION ON 'GREEN' FUEL
Sir Richard Branson is to plough funds into environmentally friendly fuels. The new Virgin Fuels company will invest up to 214million in renewable energy initiatives over the next three years. The virgin tycoon, whose empire includes air and rail services, said it was important that transport groups were at the forefront of developing 'green' fuels. The first deal saw Sir Richard backing California firm Cilion, which will make bioethanol -a sugar-based fuel - from corn. The state already uses biofuels to run cars. Sir Richard said it was 'only the biginning' of an investment programme that would be extended to the UK.
source: Metro news paper.
GTL will produce 50million gallons of ethanol within three months and to increase production to 100million gallons. please do your own due diligence.
Best luck.

deleted

robertalexander
Try again?

driver
i deleted my post as it was absolute drivel. this what you get for posting first thing in the morning

Alex

robert
I dont mind drivel thats all I ever post.