SS1 in final application stage for US$60M tax credit

Our 2024 Pick Of The Year Sun Silver (ASX: SS1) just progressed its US$60M Advanced Energy Project Tax Credit application.

A few weeks back SS1 submitted its application for the tax credit with the U.S. Department of Energy.

Today, SS1 confirmed that it had been selected for the “final application stage” and that “Initial feedback from the US Department of Energy suggests a positive recommendation”.

Both signs that SS1 is in with a serious chance at getting the tax credit.

IF successful SS1 would receive US$60M tax credit to build a Silver Paste Production Facility inside the US, aimed at supporting local solar photovoltaic (PV) cell manufacturing.

This initiative not only aligns with the U.S. efforts to reduce dependence on Chinese silver paste but also promotes job creation and economic growth in the renewable energy sector.

We also noticed in today’s announcement that SS1 confirmed that the tax credit could actually be turned into cash for SS1 by monetising the credits.

So there is potential for SS1 to get a big chunk of cash in the door without diluting shareholders.

SS1 also mentioned in today’s announcement that the company was looking at other potential grant funding opportunities - this time through the US Department Of Defence.

This comes after SS1 hit antimony mineralisation in its latest drillholes and started a project wide review of SS1’s project’s antimony potential.

We are primarily Invested in SS1 for the giant silver deposit - the biggest on the ASX at 423m ounces of silver equivalent BUT we think the antimony could deliver some unexpected upside.

Especially if SS1 is able to get some grant funding through the door.

We did a deep dive on SS1 last week covering the company’s resource upgrade and where we think the company’s next major catalysts could come from.

Check out that note here: SS1 is now the biggest silver resource on the ASX. Silver price moving too?

What’s next for SS1?

🔄Drilling Program

SS1 is currently in the middle of its 7,500m drill program. We have already started seeing hand held XRF results from the drillcores, next we want to see the final assay results.

• ✅ Permitting for drill programme
• ✅ Drilling contractor secured
• ✅ Finalise drill targets + announce a drilling plan
  • ✅ Review historical drill logs and interpret data
  • ✅ Undertake geophysical surveys
• ✅ Drilling commenced
• 🔄 Drilling results

🔄 Antinomy potential - We want to see if antimony is widespread across SS1’s giant JORC resource.

🔄 Silver paste update - We want to see SS1 put out an update on the US$60M grant application the company is working on for its silver paste business.