(TheNewswire)
Houston, Texas . TheNewswire - February 14, 2022 – Select Sands Corp. (the “Company” or “SelectSands”) (TSXV:SNS ) / ( OTC:SLSDF) today provided an operations and corporate update. Alldollar references in this release are in U.S. dollars.
The Company is pleased to report that its pre-audit Q42021 frac and industrial unit sand sales were 94,670 tons,representing a 6% increase from Q3 2021 sales of 89,096 tons and a 79%increase from Q4 2020 53,009 tons.
Pre-audit revenue and sales volumes for full year 2021more than doubled from 2020 to $19.7 million and 328,978 tons,respectively, compared to $9.7 million and 161,149 tons for full year 2020. After recording a gross margin loss (1) of $333,767in full year 2020, the full year 2021 gross margin profit (1) is estimatedat $1.6 million. Cash on hand at December 31, 2021 wasapproximately $600,000.
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(1) Gross profit and gross lossare defined as revenue less cost of goods sold (excluding depreciationand depletion).
Zigurds Vitols, President & Chief ExecutiveOfficer, commented, “Supported by increasing petroleum prices, weare seeing a continued increase in customer field activity levels asevidenced by the steady growth in our sales volumes throughout 2021. The overall industry wide frac sand demand in the Eagle Ford Basinis expected to continue its growth in 2022. Partially offsetting thepositive impact of the improved industry fundamentals has been therelated growth of certain costs, including energy and fuel expenses aswell as trucking costs.
The increase in sales tons remains encouraging as theCompany brings on more customers. The strategic location of our mineoperations in Arkansas, compared to traditional Northern White Sandsproducers located in the Upper Midwest allow for shorter cycle timesfor rail delivery. The result is that Select Sands can offer itscustomers a high-quality product with a reliable, relatively quickresponse time compared to other Northern White Sand supply optionsthat serve the Eagle Ford as well as other basins in the Southwest.”
The Company's sales unit volumes for Q1 2022 areexpected to be between 100,000 and 110,000 tons.
The Company will update the estimates contained in thisnews release when the audited financial statements are released in thelatter part of April 2022.
Select Sands Corp. is anindustrial silica product company developing its 100% owned, 520-acreNorthern White, high quality silica sands project located in Arkansas,U.S.A. Select Sands’ Arkansas property has a logistical advantageof being significantly closer to oil and gas markets located inOklahoma, Texas, New Mexico, and Louisiana than Wisconsin sources.
Forward-Looking Statements
This news release includes forward-looking informationand statements, which may include, but are not limited to, informationand statements regarding or inferring the future business, operations,financial performance, prospects, and other plans, intentions,expectations, estimates, and beliefs of the Company. Information andstatements which are not purely historical fact are forward-lookingstatements. Forward-looking information and statements involve andare subject to assumptions and known and unknown risks, uncertainties,and other factors which may cause actual events, results, performance,or achievements of the Company to be materially different from futureevents, results, performance, and achievements expressed or implied byforward-looking information and statements herein. Forward lookingstatements include statements regarding growing demand for theCompany's product offering, the expectation for continued improvementin the U.S. oil and gas sector, estimates of 2021 and Q1 2022 sales,unit volumes and gross margin/loss and performance in future quarters. Although the Company believes that any forward-looking informationand statements herein are reasonable, in light of the use ofassumptions and the significant risks and uncertainties inherent insuch information and statements, there can be no assurance that anysuch forward-looking information and statements will prove to beaccurate, and accordingly readers are advised to rely on their ownevaluation of such risks and uncertainties and should not place unduereliance upon such forward-looking information and statements. Certain of the risks that may impact these statements includegeneral economic conditions, the demand of the Company's customers aswell as those that are included in the Company's continuous disclosuredocuments available on SEDAR at www.sedar.com. Any forward-lookinginformation and statements herein are made as of the date hereof, andexcept as required by applicable laws, the Company assumes noobligation and disclaims any intention to update or revise anyforward-looking information and statements herein or to update thereasons that actual events or results could or do differ from thoseprojected in any forward-looking information and statements herein,whether as a result of new information, futureevents or results, or otherwise, except as required by applicablelaws.
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in policies ofthe TSX Venture Exchange) accepts responsibility for the adequacy oraccuracy of this release
Company Contact
Please visit www.selectsands.com orcontact:
Zigurds Vitols President & CEO Phone 844-806-7313 | W. Joe O’Rourke Vice President Sales & Marketing Phone: (713) 689-8000 Joe.orourke@selectsands.com |
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