CanWhite can maintain a positive gross profit margin at unsustainable prices for its competition. We offer a sustainable, high quality, cost effective, and operationally advantageous solution as a global producer and supplier of the preferred top tier silica sand.
1. CanWhite gross profit margin based on production of 1.36 MM t/y; Average competitor cost of $105 CAD’s (Source: Integral Capital Markets)
2. Gross profit margin includes mine-gate and transportation cost to Grand Prairie, Alberta (does not include G&A, interest, or maintenance capital)
Our lower transportation cost, low mine-gate cost and Canadian dollar advantage provides the opportunity to be a price taker in the market.
“The floor on northern white sand mine-gate prices would be determined by operating costs of mines that eventually survive the current environment.”
Source: Rystad Energy – February 2019