Gryphon Gold Corp. (OTC:GYPH) is the first junior gold producer in Nevada this year, according to AXcess News. The company announced its first production shipment of loaded carbon back on Oct. 14, but the market responded with a more significant movement yesterday.
At the end of trading GYPH closed 13.33% up at $0.34 per share, a new 52 week high. The volume was not a record, but approximately 863 thousand shares is more than four times the average for GYPH.[BANNER]
Keeping in mind that the gold stock fever is still running wild, an announcement like the one issued by GYPH could have been met with a much more enthusiastic response. There are, however, a number of reasons that could be keeping the price from insane jumps, the likes of which we have seen more than once in the past year or so.
Probably, the most important factor for the relatively conservative market reaction is that there are no specific details. The press release stated that the shipment “totaled 4.05 wet tons of carbon loaded with gold and silver.” The final assays will be available upon settlement between GYPH and Just Refiners.
Additionally, GYPH stock price took a hit when the company announced financing back in May. The result of the offering, apart from the money GYOH got, was that the OS went from approximately 97 million at the end of March to 194 million at June 30.
When there’s more clarity about what GYPH gets on the financial side, depending on the numbers, there may be a more profound market reaction.
