The Sayona Mining share price has crashed 50% in a month. What's going on?

The last month has been tough for the ASX lithium explorer.

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Key points

  • The Sayona Mining share price has halved over the last 30 days, closing at 13 cents yesterday
  • The fall came after the company released apparently disappointing results of a pre-feasibility study and underwent an institutional placement
  • Additionally, the broader ASX lithium sector experienced a sell-off event earlier this month

The Sayona Mining Ltd (ASX: SYA) share price has plunged lower over the last 30 days.

At the time of writing, the Sayona Mining share price is 13 cents, 50% lower than it was this time last month.

For context, the broader market has also slipped in that time. The S&P/ASX 200 Index (ASX: XJO) has dropped 6.7%, while the All Ordinaries Index (ASX: XAO) has fallen 7.1%.

Let's take a closer look at what's been weighing on the ASX lithium share lately.

What's going wrong for the Sayona Mining share price?

The last 30 days have been challenging for Sayona Mining.

The stock's first blow came on 23 May when the company released the results of a pre-feasibility study at its North American Lithium operation. The study found the project's net present value is around $1 billion. That factored in an average spodumene concentrate price of US$1,242 per tonne and was seemingly less than the market expected.

After plunging 25% over the two days following the release of the study's results, the Sayona Mining share price was put into a trading halt on 25 May as the company conducted a $190 million institutional placement. The placement saw the company offering new shares for 18 cents apiece.

But the worst knock felt by Sayona Mining's stock came earlier this month.

ASX lithium shares suffered through a sell-off event on 1 June. Stock in Sayona Mining tumbled 18% amid news of a bearish broker's note on lithium prices, an Argentinian reference price, and a major electric vehicle manufacturer's intent to mine its own lithium.

And the dip didn't end there. The Sayona Mining share price is now nearly 41% lower than it was at the end of May. It's also 7% lower than it was at the start of 2022 but 116% higher than it was this time last year.

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 Scott Phillips.

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