Input Capital (TSXV: INP) â Initiating Coverage - First ... - Baystreet.ca
Input Capital (TSXV: INP) â Initiating Coverage - First ... - Baystreet.ca
Input Capital (TSXV: INP) â Initiating Coverage - First ... - Baystreet.ca
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Page 7<br />
Source: Barchart<br />
Inflation: Intuitively, soybeans/<strong>ca</strong>nola should provide a hedge against inflation, similar to<br />
asset <strong>ca</strong>tegories, such as land and commodities. However, various studies that analyzed the<br />
price of soybeans from 1960-2012, have shown that there is no statisti<strong>ca</strong>lly signifi<strong>ca</strong>nt<br />
relationship between inflation and soybean prices.<br />
Strategy/Process<br />
The following presents an overview of the streaming process:<br />
<strong>Input</strong> enters into a contract with a farmer, whereby <strong>Input</strong> advances <strong>ca</strong>pital to the farmer for a<br />
term of 5-7 years. In return, <strong>Input</strong> receives the right to purchase a set amount of tonnage<br />
(“base tonnage”) at a fixed price. The fixed price, based on management’s current estimates,<br />
<strong>ca</strong>n be anywhere between $0 and $100 per tonne. <strong>Input</strong> may also purchase “bonus tonnage”<br />
from the farmer at the same set fixed price. The bonus tonnage will be based on the excess<br />
yield over the farmer’s long run average yield. The following diagram illustrates the typi<strong>ca</strong>l<br />
process.<br />
© 2013 Fundamental Research Corp. “10 Years of Bringing Undiscovered Investment Opportunities to the Forefront “ www.researchfrc.com<br />
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Change language