Shares in S&P/ASX 200 Index (ASX: XJO) lithium-focused newbie Sayona Mining Ltd (ASX: SYA) have rocketed in 2022. Though, the stock wasn't hot out of the gates.
It traded flat for much of the first quarter of 2022 before charging to a decade-high in April – a peak that quickly turned into a trough.
But since then, the Sayona Mining share price has posted a partial recovery. It's currently trading at 24.2 cents a share.
So, if one had funnelled $1,000 into the stock at the start of 2022, how would their investment have fared so far? Keep reading to find out.
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Winner, winner
If I had invested $1,000 into Sayona Mining shares at the start of 2022, I'd imagine I would be pretty happy with my decision.
Those funds likely would have seen me acquiring approximately 6,896 shares for 14.5 cents apiece.
And for a moment, that would've been a nail-biting buy. At its 2022 low point, Sayona shares were swapping hands for just 11 cents, leaving my imagined holding with a value of around $760.
Fortunately, things have since turned around for the Sayona Mining share price.
At the current share price, my imaginary $1,000 investment would have grown to be worth around $1,660.
That's one of the best year-to-date returns to be found on the ASX 200 right now. Indeed, the index has dumped 10% since the start of the year.
But does Sayona Mining's strong recent performance put its shares squarely in the buy zone?
Why I'm still not sold on Sayona Mining shares
Sayona Mining is one of a handful of ASX 200 lithium shares not yet producing the battery-making material.
The company has a 75% stake in the North American Lithium (NAL) operation. A pre-feasibility study looking at the operation's potential to restart production of lithium carbonate was launched this week. The restart is scheduled to kick off in the first quarter of 2023.
Upon the restart, an offtake agreement with Piedmont Lithium Inc (ASX: PLL) will come into effect. That will allow Piedmont to buy 113,000 metric tons of spodumene concentrate or 50% of the operation's production annually, whichever is larger.
The company also revealed another pre-feasibility study was launched at the Moblan Lithium Project yesterday. Sayona Mining holds a 60% stake in the project.
It's also exploring a number of lithium and gold prospective projects in Australia and Canada.
With all that in mind, Sayona Mining shares can be seen to promise much potential.
However, I would personally be more inclined to invest in profitable ASX 200 lithium shares.
Lithium is expected to boom in the near future and ASX 200 lithium favourites such as Pilbara Minerals Ltd (ASX: PLS) and Allkem Ltd (ASX: AKE) are already cashing in on the 'white gold'.
I like that these companies face fewer development risks than upcoming producers. I would also argue they might have more potential to profit from an expected peak in lithium prices, tipped to occur in 2023.
