Sayona Mining Ltd (ASX: SYA) shares skyrocketed in the first quarter of the 2023 financial year.
The ASX lithium share soared 60% between market close on 30 June and 30 September. In contrast, the S&P/ASX 200 Index (ASX: XJO) fell 1.43% during the same time frame.
Sayona is exploring lithium in Quebec, Canada and Western Australia. Let's check what the company has been up to and what's next.
Strong quarter
Sayona Mining shares soared 140% from 15 cents at close on 30 June to hit a high of 36 cents on 12 September. However, since then, Sayona shares have been falling.
The company's share price gained 10% in one day on 4 August. At that time, Sayona announced lithium production at the North American Lithium (NAL) project was on track for quarter one, 2023.
The company also advised that 30% of the operation's plant and equipment upgrade was complete. The project is a joint venture with Piedmont Lithium Inc (ASX: PLL).
Last month, Sayona Mining shares soared 38% between market close on 2 September and 12 September. On 7 September, Sayona advised it had awarded mining operator Fournier & Fils a four-year contract to supervise mining operations and services.
Sayona Mining managing director Brett Lynch said:
With both demand and pricing for lithium currently at all‐time highs, we are well placed at NAL to become the first supplier of spodumene in North America, paving the way to becoming the region's leading supplier of lithium carbonate/hydroxide
Another highlight during the quarter was Sayona being added to the ASX 200 list on 19 September.
Looking ahead, a federal Industry, Science & Resources Department report has predicted the lithium hydroxide price to lift to US$51,510 a tonne in 2023. However, by 2024, prices are tipped to peg back to US$37,650 a tonne.
The report also highlighted global electric vehicle (EV) sales lifted 36% in the year to June 2022.
EV giant Tesla sold more EVs than ever before in September, the BBC reported this week. Lithium is a critical component of EV batteries.
If Sayona delivers on its production target for Q1 FY2023, it may be able to capitalise on high lithium prices.
Share price snapshot
Sayona Mining shares have surged 43% in the past year while they have jumped 65% year to date.
For perspective, the ASX 200 has fallen nearly 9% in the past year.
Sayona has a market capitalisation of nearly $1.8 billion based on the current share price.
