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They're Already Predicting 8 Figure Revenue Numbers...& That's Just For Starters
Tuesday March 22 we’re looking at North America Frac Sand, Inc. (NAFS). This may be one of the more "unassuming" alerts we've brought. Immediately when you see the name and relate it to oil, you might become skeptical but the long and short of it is that oil may be at its bottom according to some industry experts. And when we see a potential for a bottom, that could mean the rally may not be that far off.
NAFS is "unassuming" because they don't necessarily drill for the oil but what they do is provide something that is needed, indefinitely, by any company utilizing new drilling methods related to Fracking..
Already A Billion Dlr Industry: Frac Sand, Who Knew?
Already a multi-billion dollar beast, the frac sand market is skyrocketing toward 19 billion dollars by 2019. North America frac sand demand forecast to increase 24% per annum.
And NAFS is located in the heart of the shale oil and gas exploration and development country, where it is centrally positioned to provide the well completion specialists with timely delivery of high quality frac sand.
According to the company NAFS spent in excess of 2.5 million in qualifying and quantifying the sand deposit. The company has also obtained a third party engineering NI43-101 Mineral Resource report which estimates the proven tonnage of mineral frac sand at 6.4 million tonnes and 80 million tonnes under optioned lands.
Keep in mind that some frac operations can use thousands of tonnes Per Week of frac sand at a price of about from what we've found looks to be around $60 per tonne...that's some serious coin in our opinion.
(NAFS): A First Look
The Market for NAFS is very intriguing to us especially based on how quiet it's been. We may be one of the first networks of our size to actually pick up coverage on this company. Pull up any chart and you should start to see that in the past, light to moderate market action ended up sparking a firestorm of momentum for NAFS.
In fact, during the last few months, NAFS has managed to hit highs of 0.245 in just a few short days. Just a few weeks ago in February NAFS even jumped up nearly 40% in a single day and that was from almost the same levels that NAFS is currently at as of Monday's (3/21) close.
Timing may be on our side if the trend holds and momentum can spark rallies like that, in our opinion. With the latest announcements from NAFS there could be some attention starting to build even as we speak.
The Total Package?
Over the past seven years, NAFS has spent in excess of CDN $3.3m in qualifying and quantifying the sand deposit. Development permits have been approved, the process engineering has been completed and the plant design has been configured.
The building and plant quote has been completed for year round production. The site location is in the center of a large and expanding market where customers are within a 120 to 400 mile radius of the plant.
As a result, the overall cost per tonne becomes much more appealing to customers who can collect the product at the plant gate and avoid the need to package and transport the product to market.
Based on this, NAFS could be at the beginning of a major shift in business from what could be looked at as the "observation phase" and heading into that vital momentum when they can "flip the switch" to begin production.
Again this could be one of the first times a network of our size has seen NAFS in full so if that is the case, early action can be a major catalyst to what we hope to be the start of another breakout run Tuesday morning (3/22). If you choose pull up NAFS tonight and be ready to trade at the opening bell.
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