May 2015
I think it's important to make note of a few fundamental aspects of Coretrack - this is all part of my own research, but I hope others get some use out of it.
Proppant Market worth $19,022.71 Million by 2019
The market size in terms of value of the proppant market (2013) was estimated to be about 45.12 million tons and is projected to reach 84.20 million tons by 2019, at a CAGR of 10.7% from 2014 to 2019. The high demand across the oil& gas industry is expected to increase the overall proppant consumption. http://www.marketsandmarkets.com/PressReleases/proppant.asp
So the above highlights an almost 100% increase in the demand for proppants over a 6 year period - this is a tick for entering a high growth market.
Coretrack's "game changing" Fly Ash vs Traditional Proppants
Eddie Sugar stated Coretracks' fly ash proppant is potentially "game changing" for the oil and gas industry - and remember, this is the man who led LNG from it's low of 12c through to it's multi dollar high (currently trading at $4.45)
Coretracks' ceramic proppants are made from fly ash, which is a byproduct of coal combustion - it's cheaper to produce, whilst being stronger and more light weight.
The cost savings of our proppants over our competitors is between 25-50% per well ($400,000 - $1.3m per well).
On top of this, there is also a cost saving to bauxite producers.
- our proppant take 5 mins @ 800 degrees in kiln
- their product takes 15-20 mins @ 1000 degrees
So if we retrofit plants it offers reduced machine wear and tear, less electricity and increased production capacity.
The other important thing to note is our smallest competitor in the US is worth $700 million. With regards to return on investment, we are currently at $10m.
Eddie Sugar and EAS Advisors
Personally, if it wasn't for Eddie Sugar coming on board, I would have a much smaller holding in Coretrack - which is now weighted equal as my largest personal holding, and growing.
For those that don't know, a small bit of background into Eddie Sugar and his firm EAS Advisors.
Eddie Sugar was one of the few willing to finance Fortescue - and in the process, generated phenomenal returns for those early backers, and has been credited with creating a handful of billionaires - and has also ensured that the doors of those investors remain open to him.
Move on to LNG (Liquified Natural Gas) - from a high of $1.89 in 2009, shares plummeted to 12c - enter Eddie Sugar and his firm EAS Advisors, who manage to raise $660 million equity funding from US investors. Current share price is $4.30.
Sugar's firm, EAS Advisors, have brokered deals with a combined total of $2.5 BILLION dollars over the past 7 years. His name and reputation are, in itself, enough to draw in US investors (especially his inner circle). The simple fact that he is involved, as I stated before, is enough for me to buy in big; I don't want to look back and miss LNG Mark 2 - for this is exactly where I see Sugar taking Coretrack.
Where to now?
It's important to put it all into perspective.
1. Multi billion dollar industry - major players scrambling to reduce operating costs
2. Hugely expanding proppant market
3. Coretrack provides "game changing" product
4. Eddie Sugar appointed, to help lead the charge into the US
5. Day prior and day of appointment, over 100m shares traded, pushing to 52 week highs on volume, with substantial orders taken (Chinese / American buyers taking positions?)
6. Managing Director secures a blocking number of votes (10.28%)
And, last but not least, where are we presenting this Friday?
MD will present in Houston on Friday this week at 2.30pm http://imformed.com/get-imformed/fo...inerals-markets-forum-houston-2015-programme/
14.30 Ceramic proppant development using fly ash as raw material
IMO the lead up to the end of this week and start of next week will be game changes for Coretrack - especially the presentations on Friday (it's not a coincidence in my humble opinion).
Good luck everyone.
Regards BMF
(20min delay)