Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Select Sands Corp V.SNS

Alternate Symbol(s):  SLSDF

Select Sands Corp. is a Canada-based industrial silica product company, which wholly owns a Tier-1 silica sands property and related production facilities located near Sandtown, Arkansas. The Company is engaged in mining its 520-acre site in Arkansas named the Sandtown quarry. The property is underlain by the Ordovician St. Peter sandstone formation, the source of industrial silica sand Ottawa White frac sand, selling into various United States oil and gas and industrial and specialty end markets. These properties include sand sphericity and roundness, crush (K Value), acid solubility, turbidity and silicon dioxide (SiO2) content. The Company is focused on developing this business to enable commercial silica sand sales to industrial and energy customers. Its Plant Reconfiguration Project includes installation of dry-process equipment at the Diaz Rail Facility.


TSXV:SNS - Post by User

Bullboard Posts
Comment by Ditto99on Jan 04, 2017 6:46pm
263 Views
Post# 25668191

RE:RE:RE:What I hear about SNS

RE:RE:RE:What I hear about SNSLooks like they have about 11 million in-the-money warrants and options which puts their EV on a fully diluted basis at $75 million. Valuation seems a little stretched right now. But under their estimates: sand prices move to $58/tonne next year, costs fall to $20/tonne and they produce 600k tonnes per year they cash flow ~$20 million. Assuming they trade at a go forward EBITDA multiple of 6.0x that backs out a >$1.20 share price. 

They currenly sell 30,000T per year so you are already paying for a full ramp in production IF you want to give this thing a ~8x multiple. Not sure what a fair multiple is but for an unproven jr that seems fair. Gear energy, a jr oil and gas producer currently holds a 4x multiple. 
Bullboard Posts