Sayona Mining share price dives 11% as sell-off continues

Sayona Mining was the biggest faller of the ASX 200 today.

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The Sayona Mining Ltd (ASX: SYA) share price was the biggest faller of the S&P/ASX 200 Index (ASX: XJO) on Thursday.

The lithium and graphite miner lost 11.43% of its value today, tumbling to a closing price of 9.3 cents.

The ASX 200 also finished in the red, down 1.4% to 7,065.2 points after United States Federal Reserve officials said interest rates would be higher for longer.

As we reported earlier, it's been a tough day for ASX lithium shares, with many falling pretty hard.

Speculation of continuing declines in lithium prices over the next three years may be contributing to weak market sentiment for lithium stocks.

Six months of hell for the Sayona Mining share price

The Sayona Mining share price has dived 54% over the past six months.

The last piece of price-sensitive news from Sayona Mining came on 6 September when it announced it had received its first cash proceeds from its North American Lithium (NAL) operation.

ASX small-cap shares are notorious for greater volatility, and Sayona Mining is a case in point.

The appeal of small-cap shares is the potential for higher returns, but with that comes higher risk.

Sayona Mining has a market capitalisation of $1.08 billion.

The lowest that Sayona shares have ever traded at is 8.7 cents.

At the end of last month, top broker Macquarie put an outperform rating on Sayona Mining with a 12-month share price target of 20 cents.

Motley Fool contributor Bronwyn Allen has positions in Macquarie Group. 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 recommended Macquarie Group. 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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