Is IPO mania back for the ASX? Sun Silver jumps 100% on first day of listing

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.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.