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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

Comment by developbcon Mar 07, 2022 7:02pm
151 Views
Post# 34493021

RE:RE:Predictions

RE:RE:PredictionsThanks TheRexmember for posting this.  I do recall SNS posting financials in USD as i glanced thru last time if I remember correctly. So if so, the numbers I ran thru my head based on 150k tons per quarter to max out at 600,000 tons/year with extreme demand and frac sand price pressures - SNS is extremely undervalued.   Back in 2017 I do recal sp touched above $2 - I remember that clearly as I was kicking myself selling too early. 

SNS is poised to do extremely well!!


TheRexmember wrote:

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.

 

 





 



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