Input Capital Corp. Releases Q1 Operations UpdateREGINA, July 10, 2014 /CNW/ - Input Capital Corp. ("Input") (TSX Venture: INP) (INPCF), is releasing its quarterly operations update for Q1 of its 2015 fiscal year summarizing canola deliveries and the acquisition of new multi-year canola streams.
Input sold a record 4,585 metric tonnes (MT) of canola during the quarter at an average price of $493 per MT, for quarterly revenue of $2.3 million . This is the first time that Input has sold more than 4,000 tonnes in a quarter and recorded more than $2 million in quarterly revenue.
"We are pleased with the increasing velocity of our canola deliveries," said President and CEO Doug Emsley . "The finish line for delivery of the 2013 crop is in sight. With the majority of the logistical issues here in Western Canada in the rear-view mirror, we are planning for the delivery of our remaining 2013 canola over the coming months."
Canola Deliveries
Input expects to receive 18,932 base tonnes of canola from the 2013 growing season.
The following table summarizes canola sales for the 2013 growing season:
|
Fiscal Year
|
Base Tonnes
Sold (MT)
|
% of 2013 Growing
Season Base Tonnes (MT)
|
Average Realized
Price ($/MT)
|
Bonus Tonnes Sold
(MT)
|
|
Q3 FY2014
|
2,646
|
14%
|
$472
|
12
|
|
Q4 FY2014
|
3,903
|
21%
|
$470
|
0
|
|
Q1 FY2015
|
4,585
|
24%
|
$493
|
0
|
|
Total
|
11,134
|
59%
|
$480
|
12
|
|
|
|
|
|
New Canola Streams
During the quarter, Input also entered into eleven canola streaming contracts with farmers in Saskatchewan for total up-front payments of $11.7 million . Six of the contracts represent expanded or new contracts with existing farm partners as a result of farm expansions undertaken by these farmers, while the other five contracts are with farmers new to Input. All of the farms are located in Saskatchewan .
Emsley added, "This pushes our deployment for this season beyond $23.5 million , which is over 30% higher year-over-year and consistent with our internal investment objectives. As a result, Input's expected base tonnage from the upcoming 2014 harvest are 38,338 MT, which is 60% higher than at the end of the previous quarter. Our expected base tonnes from the 2015 harvest and onwards have also seen substantial growth quarter-over-quarter."
To date, Input has invested a total of $42.7 million in multi-year canola streaming contracts with 20 farmers.
Streaming Contract Summary at June 30, 2014
|
Contracted volume for growing season
|
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
|
Contract Base Tonnes
|
18,932
|
38,338
|
29,338
|
29,473
|
29,488
|
29,487
|
15,255
|
1,885
|
|
Average Crop Payment
per Base Tonne(1)
|
$70.95
|
$56.51
|
$73.94
|
$73.44
|
$73.09
|
$72.94
|
$78.47
|
$54.49
|
Bought Deal Financing
In conjunction with the recently announced successful closing of the previously announced $40.25 million bought deal financing, Mr. Emsley said, "We are now primed for a full season of investing in new canola streams. When combined with internally-generated cash flow, this capital raise sets Input up for substantial deployment into new canola streaming contracts."