The facility manufactures industrial sand from a sandstone deposit located in east central Ohio. The facility sells into the building materials, industrial, oil & gas and recreational markets and is the only high silica(+99%) sand source in the region. The property consists of 85 acres currently permitted on a total 474 acres. Proven reserves are approximately 2.7 million tons with additional unproven reserves estimated at 6 million tons.
Summary Investment Considerations:
• Experienced management and labor force at the facility.
• Cash flow in excess of $1 million per year demonstrated.
• Strong 2017 YTD results with $500,000 OCF in 8 months.
• Significant reserves.
• Produces highly desired API/ISO 13503-2 approved 30/50 (4K) and 40/70 (6K) frac sand.
• Located in or near the Utica and Marcellus shale regions.
• Diverse customer base across several industries.
Over a five year period the average operating cash flow of the facility was $868,000. Revenue fluctuates year to year particularly due to changes in demand for sand for fracking. This was true in 2016 as low oil prices depressed demand. 2017 has seen a rebound in this business resulting in YTD August results at $500,377 of operating cash flow.
Owners will provide training and support.