Victory Nickel Inc of Toronto, ON has reported a third quarter net loss of US$1.6 million on sales of US$325,000 compared with a net loss of US$373,000 on revenues of US$5.5 million in the third quarter of 2014. The company notes that after coming to a full stop in the first quarter of 2015, frac sales resumed in May.
During the latest quarter, Victory’s sales of frac sand totaled 2,829 tons compared with 34,892 tons in the same period of 2014. Revenue per ton of frac sand was US$114.99 in the third quarter compared with US$149.98/ton in the same period of 2014.
In July, Victory announced that it was not able to make the quarterly interest payment due on June 30, 2015. The company has recently entered into a debt restructuring agreement with its secured lender. Without an injection of capital until the demand for frac sand returns to allow the company to sell its inventory, it would not have been able to meet its outstanding debt obligations.
Volume 29 issue 23