1. The Opportunity & Trade Thesis
Trade Overview
- Commodity: Sulphur Granular (High-Purity).
- Volume: 50,000 Metric Tons (MT) per month.
- Payment Terms: Payment at loading port against documents (CAD).
- Seller Status: Direct Sulphur Producer.
- End Buyer Status: Verified Government Owned Industrial Consumer (End User).
- Transaction: Back-to-back deal
- Investment Goal: Secure USD 20 Million working capital for continuous monthly trade.
Core Investment Thesis
- Low Market Risk: Sulphur demand remains robust, driven by global agriculture (fertilizers).
- Payment Security: Funds are received from Buyer upon presentation of valid shipping documents (B/L, Inspection, etc.) at the loading port.
- Seller Reliability: Direct access to a primary producer ensures consistent supply and favorable pricing.
- Buyer Certainty: Confirmed long-term off-take from a large, established Government owned industrial consumer.
- Turnaround: Quick capital cycle of approximately 30-45 days per trade.
- Profit Model: Profit is fixed per MT, de-linked from price fluctuations during the shipping cycle.
2. Counterparties and Supply Chain Strength
Mitigating risk through verified, long-term partners at both ends of the supply chain:
The Producer (Seller)
Verified, large-scale industrial producer with guaranteed monthly allocation, ensuring reliable supply and quality consistency.
The Consumer (End Buyer)
Major Government Company as end-user with high, non-cyclical demand for granular Sulphur, confirming reliable off-take and minimizing spot market risk.
Payment Terms
CAD (cash against documents),payable against shipping documents at the loading port, securing principal capital upon execution of the trade cycle.
3. Risk Mitigation & Commercial Advantage
Security of Principal
The trade is structured to protect the principal investment at every stage:
- Advance Payment: 20% of the working capital is released as an advance to the producer to secure allocation and readiness for loading
- Title Transfer: Remaining payment only occurs upon verified transfer of title and receipt of all necessary shipping documents.
- Quality Control: SGS or equivalent inspection mandated at the loading port to verify quality (Sulphur Granular) and quantity (50,000 MT).
4. Operational Alignment and Management
1. Capital Security
The investment is secured by the commodity itself and the confirmed purchase order from the Government owned End Buyer.
2. Transaction Expertise
Our team possesses specialized knowledge and established relationships in the commodity and freight sectors required for flawless execution.
3. Scalable Model
The monthly trade structure is designed for high repeatability and scalable capacity as working capital increases.
5. Fixed Financial Ask & Fixed Yield Structure
Secured Working Capital & Fixed Payout
Investment Required: USD 20 Million
Monthly Payout
USD 250,000
Annual Return (12 Months)
USD 3 Million
⇒ 15% Annualized Return on Principal Investment
The investment is secured for a 12-month tenure, supporting 50,000 MT/month and yielding a fixed $5 per MT profit share.
Annual Payout
USD 3.0 Million
Fixed Payout per MT
USD 5.00
Investment Tenure
12 Months
Next Steps
Immediate Focus: Finalize Terms Sheet and deploy USD 20 Million for the first monthly cycle.
Target: First loading within 30 days of investment close.
Discuss Trade Funding Now