Sun Silver (ASX:SS1) – the latest silver-gold player to list on the local bourse – has impressed punters on its first day of trade, with shares jumping 100% to 40cps in afternoon trades.
The stock surged upwards right out the gate on Wednesday, buoyed by its own value proposition – namely boasting the largest silver reserve on the ASX, according to management – and also the beneficial effects of a strong day for the materials sector.
Sun Silver’s Maverick Springs project has a JORC estimate of up to 292Moz silver equivalent, including both silver and gold.
The higher-confidence ‘inferred’ category sits at 125.4Mt of ore grading at 43.5g/t for 175.7Moz of silver and 1.37Moz of gold.
(Overnight, the Australian budget introduced tax benefits for critical minerals miners, which has led to a sector-wide boost in sentiment.)
As at 1.30pm AEST, $4M worth of shares (9.3M) have traded hands, pushing the stock’s market cap to hover near $30M.
The company raised $13M to list on the bourse, far ahead of schedule, given stronger-than-expected demand.
Part of that is likely to do with the renewables thematic – according to the World Silver Survey published in 2023, solar panels have pushed up demand for silver in that space by 330%.
Meanwhile, Sun Silver sees the silver market as in deficit. The metal also loosely tracks the price of gold, which has clocked multiple ATHs this year.
SS1 last traded at 40cps.