Spur Ventures Inc SPVEF

RE: Rough revenue/profit forecasts

[jedd2]

Those numbers are very plausible but it remains to be seen whether they can achieve near capacity beginning as early as Q2 2012 and what kind of margins they can achieve.  Also, they talk about a minimum 20.02% equity in YMC so it is likely to be closer to that number.  There are still several key and important milestones to be reached before any revenues begin to flow to Spur.  1) final approval of the ML transfers from YPCC to YMC by MOLAR in Beijing  2) Hubei SASAC to approve the Xingfa acquisition of YPCC  3) Hubei DC to approve the YMC JV agreement modification  4) YSC & YMC merger  5) an independent valuation firm accredited to Yichang SASAC to determine the final JV partners' equity positions in YMC (Spur with 20.02 to 25%).  It does appear that Xingfa has the financial and political connections to ensure that these milestones are completed.  Also, Spur mgmt needs to move on acquiring another venture in a friendlier jurisdiction.  Spur mgmt also need to do more to generate some investor awareness of this project if they ever expect the share price to reflect the progress that has been made to date.  Too much time has gone by and too much water under the bridge have combined to ensure that shareholders and any potential investors remain skeptical that current mgmt can get the job done.  Mgmt to date has squandered any goodwill that they had with the investment community.  If they can get all this done we could conceivably see a share price in the multiple dollar range but generating investor confidence again in mgmt will be key in this process.