Sayona Mining share price dips despite first lithium production

The company's NAL operation in Canada has produced 70 tonnes of spodumene concentrate.

Key points
  • The Sayona Mining share price is down despite the company's first lithium production at its North American Lithium operation
  • All ASX 200 lithium stocks are trading lower today
  • Sayona Mining expects to ship its first spodumene concentrate from NAL in July 2023

The Sayona Mining Ltd (ASX: SYA) share price is down 3.3% on Wednesday morning, currently trading for 23.7 cents per share.

It's not just the Sayona Mining share price under pressure today.

In fact, all of the S&P/ASX 200 Index (ASX: XJO) lithium stocks are well into the red at the time of writing.

Which could be why Sayona Mining is sliding, despite reporting its first lithium production.

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.

Image source: Getty Images

What did the ASX 200 lithium stock report?

The Sayona Mining share price is in the red even though the miner announced the production of its first spodumene concentrate at its flagship North American Lithium (NAL) operation.

Some 70 tonnes of lithium concentrate were produced at NAL, located in Quebec, Canada.

The emerging lithium producer labelled it "another milestone in NAL's restart".

It said that commissioning is proceeding on schedule and within budget. The first saleable concentrate is expected to be produced soon.

Commenting on the progress that's yet to lift the Sayona Mining share price, managing director Brett Lynch said:

This is another great achievement for the team at NAL. I extend my thanks to everyone concerned for progressing the NAL restart on time and on budget – something few others have achieved in recent times amid escalating cost and supply chain pressures.

"These are exciting times with the first saleable lithium concentrate to be produced soon, marking the next step in Sayona's evolution towards becoming a leading hard rock lithium producer," Lynch added.

According to Sayona Mining, its NAL project will be the most significant source of hard rock lithium production in North America.

The company expects to ship its first spodumene concentrate from NAL in July 2023. It's targeting four shipments in the first half of fiscal 2024.

Sayona Mining also updated the market on its drilling program alongside joint venture partner Jourdan Resources.

Plans are in place for more than 50,000 metres of drilling in 2023 at NAL and Jourdan's adjacent Vallée Lithium Project.

Sayona Mining share price snapshot

Despite today's dip, the Sayona Mining share price remains up an impressive 81% over the past 12 months.

Though, as you can see on the chart below, it hasn't exactly been a smooth ride.

Motley Fool contributor Bernd Struben 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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