Dej
12-10-2015, 02:58 PM
Thought I would create a thread for this, if anyone is interested.
LWP is a company that makes fracking proppants from fly ash, a residue from coal combustion.
They are aiming to compete against the ceramics proppant market through the following advantages;
- Lower cost of production than ceramic based proppants
- Very strong (e.g. no reduction in quality of proppant, if anything an increase in performance)
- Relatively light in comparison to most competitors
The idea is to create a proppant to compete within the ceramics proppant market with a lower weight, higher strength, and cheaper manufacturing cost per pound. This means you you save money logistically (As it is lighter) and the cost of the proppant is also less.
Other positives:
- Just commissioned and started a demonstration plant in Brisbane.
- Signed a JV partnership with an Indian producer (albeit a small producers, its a good validation).
- Like a few of these companies on the ASX, EAS (or Eddie Sugar) is involved with them.
- Basically everyone within the SLT and board have been buying at these levels.
- Recently did a CR (but most likely wont be the last)
The bad sides;
- A lot of the proppant market is within the sand proppants (and by a lot I mean most).
- Although its touted about as fly-ash being an unwanted by product, more and more uses for it are being found.
- Obviously its a spec stock with a spec price and spec traders (not for the faint hearted).
- Recently did a CR (but most likely wont be the last)
Upcoming events;
- They are sending off product from the demonstration plant for third party validation, results expecting sometime this year or early next.
- In a letter from the chairman, Mr. Konig (nice man, founder of the technology) said that they were in discussions with a potential purchase of an old US facility. There is talk that, although they decided not to go ahead with the current one, that there is potential for more JV partners on the way.
My take on this would be (as a business man) I would want to see the third party validation first. Regardless, that gives everyone some time to DYOR.
LWP is a company that makes fracking proppants from fly ash, a residue from coal combustion.
They are aiming to compete against the ceramics proppant market through the following advantages;
- Lower cost of production than ceramic based proppants
- Very strong (e.g. no reduction in quality of proppant, if anything an increase in performance)
- Relatively light in comparison to most competitors
The idea is to create a proppant to compete within the ceramics proppant market with a lower weight, higher strength, and cheaper manufacturing cost per pound. This means you you save money logistically (As it is lighter) and the cost of the proppant is also less.
Other positives:
- Just commissioned and started a demonstration plant in Brisbane.
- Signed a JV partnership with an Indian producer (albeit a small producers, its a good validation).
- Like a few of these companies on the ASX, EAS (or Eddie Sugar) is involved with them.
- Basically everyone within the SLT and board have been buying at these levels.
- Recently did a CR (but most likely wont be the last)
The bad sides;
- A lot of the proppant market is within the sand proppants (and by a lot I mean most).
- Although its touted about as fly-ash being an unwanted by product, more and more uses for it are being found.
- Obviously its a spec stock with a spec price and spec traders (not for the faint hearted).
- Recently did a CR (but most likely wont be the last)
Upcoming events;
- They are sending off product from the demonstration plant for third party validation, results expecting sometime this year or early next.
- In a letter from the chairman, Mr. Konig (nice man, founder of the technology) said that they were in discussions with a potential purchase of an old US facility. There is talk that, although they decided not to go ahead with the current one, that there is potential for more JV partners on the way.
My take on this would be (as a business man) I would want to see the third party validation first. Regardless, that gives everyone some time to DYOR.