Sky Quarry (SKYQ) said that it is nearing the start of operations at its Foreland Refinery in Ely, Nevada, marking a transition from infrastructure development to production and cash-flow generation.

Interim CEO Marcus Laun said Monday the facility is in the final stages of preparation and is expected to begin refinery operations in July. He added that recent upgrades include storage capacity of more than 100,000 barrels and around 10,000 barrels of crude and in-process inventory already on site.

Sky Quarry said it aims to benefit from refining margins rather than crude price movements alone as operations scale.

Sky Quarry shares were down by more than 11% during Tuesday's premarket session.