Here's why the Sayona (ASX:SYA) share price is surging 34% on Monday

Here's what sent Sayona's stock to a new 52-week high today.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • The Sayona share price launched 36% to a new 52-week high earlier today
  • The gains follow the company announcing testing of spodumene produced at its Authier Lithium Project found it's capable of creating battery-quality lithium hydroxide
  • The company also provided an update on its activities for 2022 so far

The Sayona Mining Ltd (ASX: SYA) share price is rocketing higher on more positive spodumene testing results.

Lithium hydroxide made from the company's Authier spodumene product has been found to be of the same quality as commercial battery-grade material.

At the time of writing, the Sayona share price is 33.5 cents, 34% higher than its previous close.

However, that's fallen from its intraday – and new 52-week — high of 34 cents. That represented a 36% increase.

Let's take a closer look at today's news from the emerging lithium producer.

A group of people in suits and hard hats celebrate the rising share price with champagne.

Image source: Getty Images

Positive test results send Sayona shares soaring 34%

The Sayona share price is launching upwards after testing conducted by lithium-ion battery technology giant Novonix Ltd (ASX: NVX) confirmed the quality of the company's spodumene product.

Scientists at Novonix have found the discharge capacity of cathode cells made using lithium hydroxide from Sayona's spodumene concentrates was the same as benchmark cathode cells.

The spodumene concentrate was produced at the company's Authier Lithium Project – located in Québec, Canada.

The company states the results show its Authier product performs as well as commercially available battery-grade lithium hydroxide.

Additionally, when combined with Québec's hydroelectric power, the company's product comes with environmental competitive advantages.

The positive results from Novonix's testing follow analysis completed at CSIRO's Mineral Resources Laboratories in Perth.

There, Authier spodumene was found to be able to be processed into high purity, 99.99% lithium hydroxide.

Sayona managing director Brett Lynch said the results further verify that Authier spodumene is suitable to be converted into highly demanded lithium hydroxide.

"Sayona has committed to downstream processing in Québec, including lithium carbonate or hydroxide," Lynch continued.

"These results by an industry-leading battery tester have further increased confidence in our strategy."

Also potentially boosting the Sayona share price today, the company has updated the market on its recent activities.

Drilling at its Moblan Lithium Project is ongoing and expected to finish in the middle of this month. The results are predicted to expand Sayona's lithium resource base.

Additionally, Sayona was recently added to the S&P/ASX 300 Index (ASX: XKO). The company said its inclusion followed significant growth in its market value, which is expected to increase institutional investments in Sayona.

"Sayona has made an extremely bright start to 2022, despite significant geopolitical and market instability, amid a continued focus on the electrification of transport to curb emissions," said Lynch. 

Sayona share price snapshot

Today's gains have boosted the Sayona share price even higher into the ASX green.

Right now, the company's stock is trading for 157% more than it was at the start of 2022. It has also gained 807% over the last 12 months.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

A man in a hard hat and high visibility vest holds his thumb up in a gesture of confidence with heavy moving equipment in the background as on a mine site as the Chalice Mining share price rises today.
Resources Shares

Capricorn Metals expands Golden Range Project with Piastri acquisition

Capricorn Metals boosts its Western Australian footprint by acquiring the Piastri Project, expanding gold and antimony exploration potential.

Read more »

A hand holding a lump of rare earths material against a blue sky.
Resources Shares

Brazilian Rare Earths unveils Rocha da Rocha scoping study

Brazilian Rare Earths shares are in focus after a landmark scoping study forecast world-leading economics for its Rocha da Rocha…

Read more »

Miner standing in front of trucks and smiling, symbolising a rising share price.
Resources Shares

If I invest $10,000 in Fortescue shares, how much passive income will I receive in 2027?

The dividend outlook for this major miner might surprise you.

Read more »

Woman with gold nuggets on her hand.
Resources Shares

Wia Gold completes $125m placement to fund Kokoseb Gold Project

Wia Gold completes $125 million placement to fully fund the Kokoseb Gold Project following resource growth and feasibility success.

Read more »

Red buy button on an Apple keyboard with a finger on it.
Broker Notes

Up 73%! 3 reasons I'd still buy Mineral Resources shares today

A leading expert forecasts more outperformance from Mineral Resources' surging shares.

Read more »

Pile of copper pipes.
Resources Shares

This ASX mining stock could jump in value by more than 300%: Broker

A new acquisition ticks the right boxes.

Read more »

gold, gold miner, gold discovery, gold nugget, gold price,
Resources Shares

Medallion Metals announces Macmahon as preferred contractor for Ravensthorpe Gold Project

Medallion Metals names Macmahon as preferred mining contractor for its Ravensthorpe Gold Project, unlocking contract cost savings and project momentum.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

St George Mining reports major Araxá resource upgrade

St George Mining share price is in focus after a major upgrade to its Araxá rare earths and niobium resource…

Read more »