Sayona Mining share price up 5% on record quarter for production

The Sayona Mining share price is rising today after the lithium miner released its June quarter report.

| More on:
A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Sayona Mining share price is rebounding from a 52-week low after the junior lithium miner released its June quarter report
  • Sayona reported a record quarter for production with 227,171 tonnes of total ore mined, up 104% quarter-over-quarter (qoq) 
  • Spodumene concentrate came in at 29,610 tonnes, up 744% qoq

The Sayona Mining Ltd (ASX: SYA) share price is rising strongly this morning after the lithium and graphite miner released its June quarter report.

Sayona Mining shares are currently up 4.83% to 15.2 cents.

The S&P/ASX All Ordinaries Index (ASX: XAO) is also in the green today, up 0.4% in early trading.

Sayona Mining share price rebounding off 52-week low

Sayona Mining shares hit a new 52-week low of 14 cents per share on Friday amid weakening lithium prices and falling stock values for the major lithium miners on Wall Street.

So, today's rebound is welcome news for investors.

Let's review the highlights of Sayona's June quarter report:

  • Total ore mined 227,171 tonnes, up 104% quarter-over-quarter (qoq)
  • Spodumene concentrate of 29,610 tonnes, up 744% qoq
  • Cash balance $211.2 million, up 115% qoq.

A continuing operational ramp-up at Sayona Mining's flagship North American Lithium (NAL) project in Québec, Canada resulted in record spodumene concentrate production of 29,610 tonnes.

The ramp-up followed the successful restart of the concentrator in the March quarter. This enabled a full quarter of mining operations in June and a 104% bump in production.

The average spodumene concentrate grade achieved for the quarter was in line with targeted grades, with all key spodumene concentrate parameters in line with offtake specifications.

For the FY23 full year, NAL recorded 33,120 tonnes of spodumene concentrate production. This is ahead of schedule. The average grade is 5.48% Li2O.

On 30 May 2023, the first official railcar shipment departed the train station in Val d'Or for port.

Sayona Mining has now stockpiled a total of 28,473 tonnes of spodumene concentrate at the port ahead of the first planned shipment to customers.

What else happened during the quarter?

A finalised Definitive Feasibility Study (DFS) for the combined NAL and Authier Lithium Project confirmed an increased pre-tax net present value (NPV) of $2.2 billion.

This represented a big increase on the pre-feasibility study (PFS) released to the market in May 2022.

A finalised preliminary technical study for lithium carbonate production at NAL revealed a standalone pre-tax NPV of $3.2 billion and a combined NAL pre-tax NPV exceeding $5 billion.

The company also announced a major resource expansion for its Moblan Lithium Project to 51.4 million tonnes at 1.31% Li2O. This made the project "one of North America's single largest lithium resources".

In Western Australia, Sayona began a reverse circulation drilling program at the Morella Lithium Joint Venture Project. Sayona intersected pegamites at 18 out of 35 drill holes at a total depth of 2,200 metres.

During the June quarter, Sayona Mining also completed a $200 million equity placement.

The capital raise had an offer price of 18 cents per share. The funds will be used to accelerate operations.

What did management say?

Sayona Mining managing director and CEO Brett Lynch said:

The ramp-up towards nameplate production at NAL has continued to perform ahead of expectations, with record spodumene concentrate production achieved for the quarter.

This has laid the groundwork for NAL's concentrate to be stockpiled at the port, ahead of the first shipment to customers which is planned for Q1 FY24.

Sayona will be advancing towards downstream processing as quickly as possible, supporting Québec's clean energy future.

Falling lithium prices a headwind for Sayona Mining shares

Weakening lithium prices are a headwind for all ASX lithium shares right now.

The battery-grade lithium carbonate price is US$38,917.33.

This is well down on its record high of almost US$85,000 in November 2022, but up from its 18-month low of US$23,400 reached in April this year.

The fall since November is mainly due to China ceasing electric vehicle subsidies earlier this year.

Sayona Mining share price snapshot

The All Ords is up 7.15% in the year to date, while the Sayona Mining share price is down 20%.

Motley Fool contributor Bronwyn Allen 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.

More on Materials Shares

A smiling miner wearing a high vis vest and yellow hardhat and working for Superior Resources does the thumbs up in front of an open pit copper mine, indicating positive news for the company's share price today following a significant copper discovery
Materials Shares

Meet the ASX copper stock that could rise 30%

Bell Potter thinks recent weakness has created a buying opportunity.

Read more »

a woman smiles as she checks her phone in one hand with a takeaway coffee in the other as she charges her electric vehicle at a charging station.
Materials Shares

Guess which ASX mining stock is rocketing on deal with lithium giant SQM

The two parties are looking at a potentially significant lithium project in Europe.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Materials Shares

Pilbara Minerals shares drop on major P2000 lithium expansion news

This lithium miner could be about to increase its production to 2 million tonnes a year.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Materials Shares

ASX small-cap stock explodes 210% on new copper find

This small cap has tripled in value in a single day. But why?

Read more »

Mining workers in high vis vests and hard hats discuss plans for the mining site they are at as heavy equipment moves earth behind them, representing opportunities among ASX 200 shares as nominated by top broker Macquarie
Materials Shares

Mineral Resources shares fall on big iron ore news

This mining giant is closing down its Yilgarn Hub at the end of the year.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Materials Shares

Why this ASX mining stock just got a huge broker upgrade

This mining stock could be heading even higher according to analysts at Bell Potter.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Materials Shares

Why are Sayona Mining shares outperforming other ASX lithium stocks today?

Lithium stocks are down but this one is holding firm. What's going on?

Read more »

Miner looking at a tablet.
Materials Shares

Fortescue shares drop as $1.1 billion stake hits the market

A major investor is pulling the pin on Fortescue shares, sending the share price lower.

Read more »