This is what Canaccord said in August. Ignore my last post about Beatty and the lost opportunity, as that is irrelevant now.
At this stage, solvency is not viewed as a concern. The company had
approximately $15.1 million in working capital as at June 30, 2012,
although we estimate that approximately $3-5 million in additional
expenditures may be incurred in H2/12 for previously committed
exploration/DFS related costs, in addition to corporate overhead. In
addition, the company’s assets include a 5,800 tpd ball mill, which was
acquired for $3.8 million and could potentially be monetized if a buyer
can be identified.
Ultimately, there may be value to be unlocked from the company even if
Almas in its current form is not worth building. Although the market
appears to have substantially written off the yet unproven Toldafria and
Guaranta projects, exploration efforts could still surface some value over
the longer term. We believe strategic alternatives, including a sale of the
company/merger with another may also help create value. However, at
this stage, there is a lot of uncertainty regarding what the future may
hold for Rio Novo. As a result, we believe investors may be better off
taking a wait-and-see approach.