Sky Quarry Inc. (Sky Quarry (SKQ)) stock took a step back in Tuesday's premarket session, falling about 14% to $1.63. The pullback comes after the stock soared nearly 63% on Monday, as traders locked in gains — a common pattern for thinly traded micro-cap stocks that tend to swing wildly after big moves.

The profit-taking doesn't change the bigger story: Sky Quarry is on the verge of a major milestone. The company said Monday it's preparing to start production at its Foreland Refinery in Nevada, with operations expected to kick off in July. That's a big deal for a company that's been in development mode.

Sky Quarry recently disclosed it has roughly 10,000 barrels of inventory already on-site and more than 100,000 barrels of storage capacity. That extra capacity should give the company some breathing room as it ramps up production. Management has emphasized the strategic value of the refinery, noting that refining capacity is increasingly scarce, especially in the Western U.S.

What Sky Quarry Does and Why It Matters

Sky Quarry isn't your typical oil company. It's a development-stage producer and refiner with a twist: it recycles waste asphalt shingles and cleans up oil-saturated soils. The company operates the Foreland Refinery, which is Nevada's only operating refinery, churning out diesel, vacuum gas oil, naphtha, and asphalt.

The news about entering production marks a critical shift for Sky Quarry — moving from preparation to active operations. That transition positions the company to capitalize on its unique market position in a region that's short on fuel. If all goes well, it could boost financial performance and shareholder value.

Earlier in June, the company launched a crude oil drilling and production initiative in Nevada's Railroad Valley and said it plans to refine that crude at its Foreland Refinery. So the pieces are coming together.

For now, the stock is taking a breather. But with production set to begin next month, all eyes are on July.