Houston, Texas – February 14, 2022 – Select Sands Corp. (the “Company” or “Select Sands”) (TSXV:SNS ) / ( OTC:SLSDF) today provided an operations and corporate update. All dollar references in this release are in U.S. dollars.
The Company is pleased to report that its pre-audit Q4 2021 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 2021 more 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 $333,767 in full year 2020, the full year 2021 gross margin profit (1) is estimated at $1.6 million. Cash on hand at December 31, 2021 was approximately $600,000.
(1) Gross profit and gross loss are defined as revenue less cost of goods sold (excluding depreciation and depletion).
Zigurds Vitols, President & Chief Executive Officer, commented, “Supported by increasing petroleum prices, we are seeing a continued increase in customer field activity levels as evidenced by the steady growth in our sales volumes throughout 2021. The overall industry wide frac sand demand in the Eagle Ford Basin is expected to continue its growth in 2022. Partially offsetting the positive impact of the improved industry fundamentals has been the related growth of certain costs, including energy and fuel expenses as well as trucking costs.
The increase in sales tons remains encouraging as the Company brings on more customers. The strategic location of our mine operations in Arkansas, compared to traditional Northern White Sands producers located in the Upper Midwest allow for shorter cycle times for rail delivery. The result is that Select Sands can offer its customers a high-quality product with a reliable, relatively quick response time compared to other Northern White Sand supply options that serve the Eagle Ford as well as other basins in the Southwest.”
The Company’s sales unit volumes for Q1 2022 are expected to be between 100,000 and 110,000 tons.
The Company will update the estimates contained in this news release when the audited financial statements are released in the latter part of April 2022.
About Select Sands Corp.
Select Sands Corp. is an industrial silica product company developing its 100% owned, 520-acre Northern White, high quality silica sands project located in Arkansas, U.S.A. Select Sands’ Arkansas property has a logistical advantage of being significantly closer to oil and gas markets located in Oklahoma, Texas, New Mexico, and Louisiana than Wisconsin sources.
This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Information and statements which are not purely historical fact are forward-looking statements. Forward-looking information and statements involve and are 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 future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Forward looking statements include statements regarding growing demand for the Company’s product offering, the expectation for continued improvement in 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 information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Certain of the risks that may impact these statements include general economic conditions, the demand of the Company’s customers as well as those that are included in the Company’s continuous disclosure documents available on SEDAR at www.sedar.com. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Please visit www.selectsands.com or contact:
President & CEO
W. Joe O’Rourke
Vice President Sales & Marketing
Phone: (713) 689-8000
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.