(Dallas, TX. – November 2, 2011) StockGuru Shines its Spotlight on Spur Ventures Inc. (OTCBB: SPVEF) (TSX: SVU). The Company announced yesterday that there have been several significant milestones achieved in the 3rd quarter with respect to Spur’s phosphate project in China. The Company closed up two percent on November 2, 2011, at $0.266, trading in a fifty-two week range of $0.6023 – 0.26.
- On July 22, 2011, the Central Ministry of Land and Resources (“MOLAR”) officially approved the transfer of the title for the Dianziping and Shukongping mining licenses from Spur’s joint venture partner, Hubei Yichang Phosphate Chemical Co. Ltd. (“YPCC “) to Yichang Maple Leaf Chemicals (“YMC”) as part of YPCC’s equity contribution to the YMC joint venture.
- On October 13, 2011, Yichang Xingfa Group Co. Ltd. (“Xingfa”) received final approval from Hubei Province State Owned Assets Supervision and Administration Commission (“SASAC”) for its acquisition of 100% of YPCC. Legally, YPCC will remain the formal Chinese partner in the YMC joint venture.
The Company continues to work towards receiving official government approval for the modification to the YMC joint venture agreement described in the Company’s March 30, 2011 news release, under which Spur would retain a minimum 20% ownership in YMC with no requirement for further investment.
However, at present, Chinese government authorities are exerting pressure on both Spur and Xingfa to proceed towards to the completion of their respective registered capital contributions under the current approved YMC joint venture agreement where Spur is required to contribute RMB 231.4 million ($36 million) to maintain a 49% equity interest in YMC, rather than await approval for the modified agreement referred to above.
Further updates will be provided in due course.
Third Quarter, 2011 Results
The Company continues to maintain a solid cash position with cash and cash equivalents and short-term GICs at the end of Q3 2011 amounting to $21.48 million compared to $ 23.35 million at December 31, 2010. As of the date of this press release, the Company has approximately $22.25 million Canadian dollars (versus $CDN 23.20 in 3Q2010) equivalent to $CDN 0.368 per share, considerably more than its current stock trading price.
The Company’s continued focus on cost control resulted in a 15% reduction in year to date net cash used in operating activities (before working capital changes and interest income) of $756,000 versus $885,000 for the same 9 months in 2010. Net cash used in operating activities (before working capital changes and interest income) for the quarter was $276,000.
The Company posted a net loss of $476,000 ($0.007 per share) in Q3 2011 compared to $500,000 ($0.008 per share) in Q2 2011 and $379,000 ($0.006 per share) in Q3 2010. The increase in loss between years was mainly due to $46,000 more in non-cash stock-based compensation expenses, $16,000 more non-cash charge on share of loss on investment in affiliate, and $18,000 in non-recurring recovery of bad debts in Q3 2010.
More information can be found in the audited financial statements and the related notes and the management discussions and analysis of the period filed with Canadian regulators on SEDAR at www.sedar.com and on the company’s website: www.spur-ventures.com
This news release contains “forward-looking statements”. Forward-looking statements include, but are not limited to, statements with respect to the estimation of mineral resources, the timing and content of upcoming programs, the realization of mineral resource estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to international operations; actual results of planned expansion activities; changes in project parameters as plans continue to be refined; future prices of resources; exchange rates for Canadian, U.S. and Chinese currencies; possible variations in grade or recovery rates, accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; Chinese government policies on fertilizer and agriculture; general economic, market or business conditions as well as those factors discussed under “Description of the Business – Risk Factors” in the Annual Information Form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements or information made in this press release, except as required under applicable securities legislation.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
To view this StockGuru Spotlight, please visit: http://www.stockguru.com/category/latest-spotlights/
To get free alerts on this and other similar stocks, please register here:
What is the StockGuru Spotlight?
Many companies covered in The StockGuru Spotlight have positive increases in both volume and share price. While this is not true in all cases, StockGuru strives to cover companies in The StockGuru Spotlight that are worth of our readers’ attention.
StockGuru looks for potential break-out candidates in The StockGuru Spotlight. Many of these companies have had recent news and appear to be getting the attention of investors. StockGuru does not typically feature companies in The StockGuru Spotlight that are compensating StockGuru for this coverage. There are times when StockGuru covers a stock in The StockGuru Spotlight that had previously compensated Stockguru. Where that is the case, a proper disclosure is included below. StockGuru and its partners, employees and writers never hold shares, short positions, warrants or any other current position in a stock featured in The StockGuru Spotlight.
To feature a company in The StockGuru Spotlight please contact the Publisher at email@example.com. If our reader is a key person for a publicly traded company, StockGuru can consider that company for either a StockGuru Spotlight or a StockGuru Profile. Please contact the StockGuru Publisher John Pentony at this email address: firstname.lastname@example.org.
Stockguru.com (“SG”) provides its members with the latest news, press releases, and trade alerts for all the companies highlighted on the site StockGuru.com. SG utilizes information believed to be reliable herein prepared all material. The information contained herein is not guaranteed by SG to be accurate, and should not be considered to be all-inclusive. The owner, publisher, editor and their associates are not responsible for errors and omissions. SG encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and SG makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies or the information contained herein. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. SG is not a licensed broker, broker dealer, market maker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed on http://www.Stockguru.com or mentioned herein.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected”, “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and SG undertakes no obligation to update such statements. StockGuru is occasionally compensated for coverage. When this is the case, SG clearly indicates this with a disclosure of all compensation received in the past and present. Additionally SG also discloses any anticipated compensation in the future. Compensation is typically in cash. Sometimes a company pays SG in restricted shares. Pentony Enterprise and its associated companies does not take free trading shares for any reason at anytime. StockGuru is not a registered investment adviser or a broker-dealer. StockGuru makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.
John Pentony, Publisher, Stockguru.com
Tel: +1 469 252 3031