I do agree, being cautious is always a good idea - in the case of fracking industry slowing due to cost etc... I posted a few months ago what my thoughts were on the costs involved and that the US govt. would not let the industry die I don't think.
Think of the cost of the US govt. subsidizing the frackers to keep them cranking during any tough times - huge cost... BUT, it means large amounts of oil produced from US soil and the US possibly becoming oil dependent - imagine that...Now compare the cost of them subsidizing the frackers compared with them being in the middle east (let's face it - we all know it is oil related!) That has cost the US trillions over the past decade!
Therefore I think economically - if it were finer lines and the fracking industry as a whole looked to be struggling, I am confident that the Govt would get out their (seemingly blank and endless) checkbooks to keep it going.
Here is another article - same company site, but focused more on CKK/LWP, which shines a little bit of a different light compared to the other article (on the same site!) with mention to the shortage of raw material and increasing demand. http://imformed.com/proppant-promise-from-australian-fly-ash/
Another thing I think with the fracking moving to sand and the proppant producer Oxane shutting down their plant - By the sound of their product it was a little more costly to produce and on top of that, there was mention of up to 70 employees working at their plant - plant being the word that stood out to me... one of CKK/LWP's main points of difference being they will have multiple plants - strategically located. If Oxane only had one plant, this may have caused huge costs logistically both with feedstock AND shipping of end product to site...possibly why they have closed thier operations.
All just thoughts!
CKK Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
