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U.S. Silica (SLCA) Buys Additional Reserves in Ottawa
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U.S. Silica said that it has purchased a fully permitted, 327-acre parcel of land adjacent to its present silica sand mine and plant in Ottawa, IL, from a privately-held mining company. The terms of the transaction were not disclosed.
The Maryland-based producer of commercial silica intends to use the property for future mining operations. The company said that the property will add around 30 million tons of proven reserves. The reserves are high quality Ottawa White sand and will make coarse and medium to fine product grades.
The company noted that its strong balance sheet provides it with ample opportunities for making investments like this that will help expand the life of its flagship operation and ensure its long-term competitive position in the market. U.S. Silica's Ottawa plant caters to a host of end-use markets including glass, building products, chemicals and oil and gas proppants.
U.S. Silica swung to a loss in the first quarter of 2016, hurt by lower volumes and prices in the Oil and Gas segment, as the market turned increasingly competitive. Adjusted loss per share was lower than the Zacks Consensus Estimate. Revenues tumbled roughly 40% year over year in the quarter on lower sales volumes and reduced oil prices, and missed expectations.
U.S. Silica had cash and cash equivalents of $463.4 million at the end of the quarter, up roughly 84% year over year. The company completed a public offering of 10 million common shares in the quarter worth $186.2 million.
Expecting further downward pressure in the Oil and Gas segment in the second quarter, U.S. Silica is currently focusing on tight cash management, business efficiency and cost reduction. The company believes these measures will help it survive in the current downturn and increase profitability when the market reverses.
U.S. Silica currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials sector include BHP Billiton Limited (BHP - Free Report) , Turquoise Hill Resources Ltd. and Ciner Resources LP , all holding a Zacks Rank #2 (Buy).
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U.S. Silica (SLCA) Buys Additional Reserves in Ottawa
U.S. Silica said that it has purchased a fully permitted, 327-acre parcel of land adjacent to its present silica sand mine and plant in Ottawa, IL, from a privately-held mining company. The terms of the transaction were not disclosed.
The Maryland-based producer of commercial silica intends to use the property for future mining operations. The company said that the property will add around 30 million tons of proven reserves. The reserves are high quality Ottawa White sand and will make coarse and medium to fine product grades.
The company noted that its strong balance sheet provides it with ample opportunities for making investments like this that will help expand the life of its flagship operation and ensure its long-term competitive position in the market. U.S. Silica's Ottawa plant caters to a host of end-use markets including glass, building products, chemicals and oil and gas proppants.
U.S. Silica swung to a loss in the first quarter of 2016, hurt by lower volumes and prices in the Oil and Gas segment, as the market turned increasingly competitive. Adjusted loss per share was lower than the Zacks Consensus Estimate. Revenues tumbled roughly 40% year over year in the quarter on lower sales volumes and reduced oil prices, and missed expectations.
U.S. Silica had cash and cash equivalents of $463.4 million at the end of the quarter, up roughly 84% year over year. The company completed a public offering of 10 million common shares in the quarter worth $186.2 million.
Expecting further downward pressure in the Oil and Gas segment in the second quarter, U.S. Silica is currently focusing on tight cash management, business efficiency and cost reduction. The company believes these measures will help it survive in the current downturn and increase profitability when the market reverses.
U.S. Silica currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials sector include BHP Billiton Limited (BHP - Free Report) , Turquoise Hill Resources Ltd. and Ciner Resources LP , all holding a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>