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Press Release Details

Input Capital Corp. Monthly Update - March 2014

04/01/2014

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 in Saskatchewan 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.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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 and Saskatchewan.

Forward Looking Statements

This release includes forward-looking statements regarding Input and its business. Such statements are based on the current expectations and views of future events of Input's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Input, including risks regarding the agricultural industry, economic factors and the equity markets generally and many other factors beyond the control of Input. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Input undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

SOURCE Input Capital Corp.

Doug Emsley, President & CEO, (306) 347-1024, doug@inputcapital.com; Brad Farquhar, Executive Vice-President & CFO, (306) 347-7202, brad@inputcapital.com

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