solar glass production.Īlso, we are the sole supplier to most of the facilities of the largest U.S. Speaking of clean energy, we believe that our low iron silica sands are currently in 15% to 20% of the newly installed solar panels in the U.S., and we estimate that our products are now use in approximately 50% of U.S. Bryan Shinn, CEO of SLCA, discusses a couple of applications where purity matters. Trace materials that appear as a result of rock maturation processes can dilute the purity and therefore the value of the mineral. There is no substitute.įortunately, sand is ubiquitous on the face of the earth, but the quality varies widely. Industrial processes that make glass for solar farms, printed circuitry for every cellphone, and computer, cement - where it adds structural strength, and a host of other applications are absolutely dependent upon it. Without it most of the fundamental aspects of our civilization simply would not exist. I am placing the humble sand grain into contention for being the most important commodity to the modern life we cherish. Others might say food stuffs, like corn, or soy beans. You can argue about which commodity is the most important to our economy. Let's pay a little respect to sand-silica-quartz SLCA is a recovering oilfield story and a re-opening economy story. We think investors with a moderate risk profile should consider SLCA for significant growth in 2021 and beyond. We think the company is positioned to fire on all cylinders as this dual story-oilfield and industrial plays out over the course of the year. Shares have rebounded strongly after an earnings release that saw beats on the top and bottom lines. Applications that already provide 65% of SLCA profits. In this article, we will review the oilfield thesis for the company, and look at several of the promising green energy and other industrial applications for diversification they are pursuing. SLCA stock still moves with the price of crude meaning that the market has not yet credited the company with its move into industrial applications. It is selling its sand products into a variety of industrial applications, many of which are driven more by product quality and unique attributes than price. The company has taken meaningful steps toward diversifying away from a sole reliance on the oilfield to generate revenue.
Black dots indicate multiple mine or stockpoints in a given area. It also serves the Permian and other shale plays, providing its last mile "Sand Box" logistics support. The company is one of the leading purveyors of Northern White sand in the U.S. This represents a near doubling from present levels. This should give the stock a push toward the $20 level at year-end. The oilfield is also rebounding and driving higher prices for sand. The company is doing a great job of diversifying its portfolio into the industrial space with particular focus on emerging "clean energy applications." We will discuss some of these in this article. We view this pullback as being temporary and SLCA should return to growth in Q-2. We think this company is best in breed in the sand space and risk tolerant investors looking for growth, should take a look at it. Boy, were we wrong! It peaked in March at $15 and has since retrenched along with many other oil and gas related stocks during the intervening time. Silica Holdings ( NYSE: SLCA) is one we picked last fall at $2.72 to double in the next year. The Company currently operates 24 mines and production facilities and is headquartered in Katy, Texas.Photo by Juan-Enrique/iStock via Getty Images Introduction SandBox Logistics™ is a state-of-the-art leader in proppant storage, handling and well-site delivery, dedicated to making proppant logistics cleaner, safer and more efficient. EP Minerals is an industry leader in the production of products derived from diatomaceous earth, perlite, engineered clays, and non-activated clays. Silica's wholly-owned subsidiaries include EP Minerals and SandBox Logistics™. Silica has developed core competencies in mining, processing, logistics and materials science that enable it to produce and cost-effectively deliver over 600 diversified products to customers across our end markets. The Company is a leading producer of commercial silica used in the oil and gas industry and in a wide range of industrial applications.
is a global performance materials company and is a member of the Russell 2000.
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