After doing a bit of petrology this year, I am by far no expert. But with my business and geology experience, as well as keeping up to date with the oil industry, I can at the very least attempt a basic and brief analysis of the coming year.
Firstly, a price drop for oil would be beneficial for us, the cheap fly ash proppants can make fracking for oil a viable option in these circumstances. As we all know, there is a massive profit margin (according to what is known), even if we had mildly good test results, it is likely that we still could be in for a functional partnership at the very least. Simply having better than the average proppants with (hypothetically) the same freight cost for the regions that we provide for can leave us in a superior position.
Secondly, as predicted results, would enable us to 'undercut' all other manufacturers. With a predicted profit margin (of I believe) 60% would lead us to nearly double the industry (mining) average of 37%. With an already possible minor manufacturing plant, we are about to hit a lucrative time in as a proppant manufacturer, we could nearly and, yet accidentally, develop a monopoly.
Put simply, when this announcement hits, the SP will double, possibly a minor drop until we see some actual profits and other announcements, but when this happens. 0.7c would be a marvellous buy. Personally, I will almost deinitly be dumping some other stocks once this announcement hits a positive result.
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After doing a bit of petrology this year, I am by far no expert....
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