Why is the Sayona Mining share price crumbling 8% on Friday?

Friday has turned out to be a rough day for the lithium hopeful.

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Key points

  • The Sayona Mining share price is tumbling 8% to trade at 25.75 cents right now
  • That's despite no news released by the ASX minerals explorer and developer
  • However, it's far from alone in the red. It's joined by many of its ASX lithium-focused peers

The Sayona Mining Ltd (ASX: SYA) share price is tanking on Friday despite no news having been released by the company.

Stock in the mineral explorer and developer is currently trading at 25.75 cents apiece, 8.04% lower than its previous close.

In comparison, the All Ordinaries Index (ASX: XAO) has lifted slightly, up 0.02% at the time of writing.

So, what might be weighing on the ASX lithium hopeful? Let's take a look.

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

The Sayona Mining share price is plummeting today despite the company's silence. In fact, the market hasn't received word from the mineral stock in close to a month.

The last time the company released price-sensitive news was on 4 August. Then, it provided an update on the planned restart of its North American Lithium operation.

However, there is one situation that might explain the Sayona Mining share price's poor performance today. That is the poor performance of many of its peers.

The S&P/ASX 200 Materials Index (ASX: XMJ) is the ASX 200's worst performing sector right now. It's being dragged down amid concerns around a major lockdown and falling factory activity in China.

And lithium shares are, in turn, the sector's biggest weight.

The Mineral Resources Limited (ASX: MIN) share price is leading its downfall, tumbling 5.3%. Shares in Core Lithium Ltd (ASX: CXO), Liontown Resources Limited (ASX: LTR), and Lake Resources NL (ASX: LKE) aren't far behind, falling between 4.4% and 5.1%.

While Sayona Mining isn't a part of the ASX 200, its stock might be being influenced by the sell-off among its peers on the index.

Its shares are also falling alongside those of Piedmont Lithium Inc (ASX: PLL). The Piedmont Lithium share price has tumbled 4.5% at the time of writing after the company announced plans to build a second lithium hydroxide processing plant this morning.

Luckily, the Sayona Mining share price still has plenty of wiggle room. It is currently trading around 78% higher than it was at the start of 2022.

In comparison, the All Ords has slipped 11% year to date.

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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