RE:Predictions here is some simple math for a target price.
Capacity for SNS is about 150,000 tons per quarter. Sand was roughly 70 bucks a ton in December and it is increasing because there are both production shortages and problems getting it delivered to well sites across the industry.
we produce a higher quality product than local in-basin mines. Equivalent to the best Wisconsin sand.
I think we will hit our capacity shortly and we have the advantage of owning a big reload facility in Texas.
prices could spike up to 100 dollars per ton based on current demand and the crazy oil price.
that would equal revenue of about 15 million per quarter or almost 3X Q4 revenue
The accounting is a bit murky but with those numbers I could see EBITDA of around 6 million per quarter. 24 million per year.
put a super cheap cash flow multiple of 3X on SNS and I get roughly 80 cents per share, plus asset values such as the frac sand deposit, other land, equipment, inventory, the texas transload facility and cash on hand.
by fall, cash on the balance sheet should be rising quickly
could be worth a dollar in a year. 40-50 cents short term.
Some things have to work out. Rail cars have to show up so we can ship sand and hopefully prices move up a bit. With oil prices surging, the pressure must be on to get sand at almost any price.