Gryphon Gold (GYPH): Multiple Near-term Catalysts
Gryphon Gold Corporation (OTCBB: GYPH), a gold exploration company with a principal focus on its Borealis gold project in Western Nevada, similar to companies like New Gold Inc. (AMEX: NGD) and Allied Nevada Corp (AMEX: ANV), has a number of near-term catalysts that could send the stock higher over the next few quarters and throughout 2012.
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Gryphon Gold’s Near-term Catalysts
- Borealis Successfully Restarted – Gryphon Gold has successfully restored its Borealis gold project and has already begun to ship gold from its gold heap leach operation.
- Gold Prices Continue to Rally – Gold prices have been on the rise since the global economic crisis of 2008, reaching more than $1,600 per share in December 2011.
- Significant 2012 Guidance Issued – Gryphon Gold has stated that it anticipates some 43,000 ounces of gold to be produced by its property in 2012 alone.
Borealis Mine Enters Commercialization
Gryphon Gold’s Borealis mine is just starting to pay off for investors. On December 1, 2011, the company received its first revenues from the sale of loaded carbon delivered in October. These revenues amounted to $221,442 now, but the firm expects to ramp up production to 3,700 ounces of gold by the end of the year and 43,600 ounces of gold in 2012.
At a relatively conservative gold price of $1,200 per ounce, this equates to $4.44 million in revenues by the end of 2011 and more than $52 million in revenues during 2012. While actual overhead figures have yet to be presented, the company should be able to turn a profit on both a cash flow and net income basis during 2012, based on these estimates.
Gold Prices Headed Higher, Say Experts
The aforementioned estimates are based on a $1,200 gold price, which leaves a huge potential upside given recent trends. Gold prices are currently hovering around $1,600 per ounce with many experts calling for them to rise above $2,000 per ounce over the coming years, despite some recent weakness reported in the spot market.
The catalysts behind a potential move higher include further problems in the Eurozone, as well as potential problems in the United States. Investors tend to buy gold as a safe-haven asset when other asset classes start performing poorly or rise in risk. Potential consolidation in the gold mining industry could also drive valuations higher.
About Gryphon Gold Inc.
Gryphon Gold is a Nevada-focused gold exploration company. The Company’s principal property is its Borealis gold project located in the Walker Lane gold belt of western Nevada.
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