INPUT CAPITAL CORP. MONTHLY UPDATE - MARCH 2014 I like this broken model as some say it is on this board, 7 New contracts in March alone, LOL. 3 existing and 4 are new.
REGINA, April 1, 2014 /CNW/ - Input Capital Corp. ("Input") (TSX Venture Exchange: INP) is releasing its monthly update for March 2014 summarizing canola deliveries and the acquisition of new multi-year canola streams.
Input sold 1,345 metric tonnes (MT) of canola in March, closing out its canola sales for the 2014 fiscal year. This reflects an acceleration of crop deliveries and sales from previous months as government regulation, the railways and warmer weather work together to gradually improve grain shipments.
"We have now delivered and sold about 1/3rd of the 2013 crop. Fourth quarter canola sales volumes were 23% higher than Q3 deliveries. We are pleased to see the pace of deliveries picking up," said President and CEO Doug Emsley. "Of the ten farmers with whom we had streaming contracts in 2013, five have now completed their deliveries of Base Tonnes to Input, and the other five are progressing as the trains begin to move more quickly."
Canola Deliveries
Input expects to receive 18,297 base tonnes of canola from the 2013 growing season.
As of March 31, which marks the end of the 2014 fiscal year:
| | Base Tonnes Sold (MT) | % of 2013 Growing Season Base Tonnes (MT) | Average Realized Price ($/MT) | Bonus Tonnes Sold (MT) |
| FY2014 | 6,067 | 33% | $464 | 12 |
New Canola Streams
During the month of March 2014, Input entered into seven canola streaming contracts with farmers inSaskatchewan for total up-front payments of $7.1 million. Three of the contracts represent expanded or new contracts with existing farm partners as a result of acreage expansions undertaken by these farmers, while the other four contracts are with farmers new to Input. One of the new farmers is located in Alberta, while the rest are located in Saskatchewan.
Gord Nystuen, Vice-President of Market Development added, "We are very pleased with our investment progress during the month of March. We are ahead of our internal deployment objectives for this point in the year, and our deal pipeline is vibrant and growing. More and more farmers are discovering the value of a streaming contract as a flexible and cost-effective alternative to financing their working capital needs."
Streaming Contract Summary at March 31, 2014
| | Contracted volume for growing season |
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
| Contract Base Tonnes | 18,297 | 23,758 | 23,758 | 23,893 | 23,908 | 23,908 | 9,675 | 1,885 |
| Average Cash Cost(1) / Base MT | $78.95 | $68.62 | $68.62 | $68.23 | $68.19 | $68.19 | $67.39 | $0.00 |
| Claim to Bonus Tonnes | 15% | 15% | 15% | 15% | 15% | 15% | 15% | 15% |
Input Completes First Full Fiscal Year
These new contracts bring total capital invested in new canola streaming contracts to $13.2 million for the most recent quarter, compared to $6.1 million in the same quarter last year, for a year-over-year increase in capital deployed of 116% during the January to March period.
March 31, 2014 also marks the end of Input's first full fiscal year of operation. During the entire fiscal year ended March 31, Input invested $26.3 million into thirteen new multi-year canola streaming contracts and five contract expansions with existing farm partners, bringing the total capital invested by Input to $32.4 million to date in a total of 18 canola streams with 17 farmers.
Brad Farquhar, Executive Vice-President and CFO said, "As we look back on the history of the company since it was capitalized in November 2012, we have taken an idea and turned it into an exciting reality. The company is growing quickly, and we are on track with our plan to make agriculture streaming into a standard tool for farmers to fund their ever-growing working capital needs."
As new streaming contracts are finalized, they will be summarized in these monthly updates.
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About Input
Input is an agriculture commodity streaming company with a focus on canola, the largest and most profitable crop in Canadian agriculture. Input enters into multi-year canola streaming contracts with canola farmers in western Canada. Pursuant to the streaming contract, Input purchases a fixed portion of the canola produced, at a fixed price, for the duration of the term of the contract. Input is a non-operating farming company with a diversified portfolio of canola streams, all of which produce canola and revenue for Input within a year of being signed. Input plans to grow and diversify its low cost canola production profile through entering into additional canola streaming contracts with farmers across western Canada.
Input is focused on farmers with quality production profiles, excellent upside yield potential, and strong management teams. Input has eighteen canola streams with farmers located across Alberta andSaskatchewan.