Why has the Sayona Mining share price crashed 20% in 2 weeks?

Exciting news released today hasn't managed to bolster the struggling lithium stock.

Key points
  • The Sayona Mining share price has tumbled around 20% over the last fortnight to trade at 21.7 cents right now
  • And exciting news released today hasn't managed to interrupt its recent slump
  • The company announced its North American Lithium operation is still on track and on budget to restart production in March

The last fortnight has been rough for those invested in Sayona Mining Ltd (ASX: SYA), with the lithium favourite's share price crashing 19.6% in that time.

Right now, the Sayona Mining share price is trading at 21.7 cents – 1.36% lower than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen around 2% in that time.

Meanwhile, many of the company's unprofitable lithium peers have been hit harder. Here's how three market favourites have been performing over the last fortnight:

  • Shares in Core Lithium Ltd (ASX: CXO) have slumped 15% in that time
  • Those of Liontown Resources Ltd (ASX: LTR) have also dropped 15%
  • Stock in Lake Resources N.L. (ASX: LKE) has fallen around 22%

Let's take a closer look at all that's been going down in Sayona Mining's camp lately.

Man with his head on his head with a red declining arrow and A worried man holds his head and look at his computer as the Megaport share price crashes today

Image source: Getty Images

Sayona Mining set to kick off lithium production in March

The Sayona Mining share price has been struggling in recent weeks amid a number of updates from the company.

First, it corrected an error found in its most recent quarterly report. The non-price sensitive announcement saw its stated estimated quarters of funding available increase from 3.5 to 5.1 – a notable jump. It also released an investor presentation to the market late last week.

But what's likely the most exciting news was published this morning.

The company announced its North American Lithium (NAL) operation remains on track to restart production next month.

That's said to see Sayona Mining on the path to becoming the North American lithium industry's leading hard rock producer.

Progress aiming to restart the operation's concentrator and construction process had both reached 96% at the end of January, with commitments and costs in line with budget. And in a notable milestone, the operation recently saw ore fed into the crushing plant.

The next goal from here is production, after which the first shipment of spodumene concentrate is tipped to go ahead in July.

The company is targeting four shipments in the first half of financial year 2024. It's aiming to produce between 85,000 tonnes and 115,000 tonnes in that time.

Commenting on the news failing to bolster the Sayona Mining share price today, managing director Brett Lynch said:

I congratulate the project team for delivering the NAL restart on time and on budget ‐ a remarkable achievement in the current inflationary environment and amid supply chain pressures.

With lithium demand continuing to rise and supply limited, NAL is in an excellent position to benefit.

Sayona Mining share price snapshot

While the last few weeks have been rough on the Sayona Mining share price, it's been outperforming over the longer term.

The stock has gained 14% since the start of 2023. It's also 67% higher than it was this time last year.

For comparison, the ASX 200 has gained 6% year to date and 1% 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 Scott Phillips.

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