The Sayona Mining Ltd (ASX: SYA) share price is pushing higher on Thursday morning.
In morning trade, the lithium miner's shares are up 3.5% to 9 cents.
Why is the Sayona Mining share price pushing higher?
Investors have been buying the company's shares today after it announced the results of its strategic review.
This review encompassed all facets of the company, including operations and downstream processing, recognising Sayona's ability to take advantage of the continued drive for locally supplied, battery-grade lithium chemicals in North America.
It also addressed opportunities for partnerships to support growth and market access, as well as the prospects for integrating downstream production.
In addition, areas have been identified where significant cost savings initiatives could be implemented in order to conserve cash resources in this current operating environment.
Following the strategic review, the board has approved a five-pillar strategy.
Sayona Mining's five-pillar strategy
The company's five-pillar strategy comprises:
- Optimise operations – Ramp up production at the North American Lithium (NAL) project to sustainably optimise production and maximise returns and cashflow generation.
- Expand resource base – Expand known mineral resources through drilling programs at NAL and Moblan and continue value accretive exploration in Québec and Western Australia.
- Develop assets – Deliver portfolio potential through the development of upstream assets and pursue value accretive growth options.
- Integrate downstream – Evaluate and secure opportunities for downstream integration into higher value lithium carbonate and lithium hydroxide production.
- Explore strategic partnerships – To lock in demand, access-end markets, establish a vertically-integrated supply chain, and fund the accelerated development of the company with strict cash flow management.
Sayona's Interim CEO, James Brown, appears confident in the strategy. He said:
We are confident that this strategy will generate significant, long-term value for Sayona's shareholders, employees, joint venture partners and community stakeholders.
Also potentially giving the Sayona Mining share price a lift today has been its sales update.
Following the first successful shipment in August, a further three shipments have been completed, with at least two further shipments pending for the remainder of 2023.
Management also advised that it has attracted strong international interest in offtake from NAL, which is currently North America's single largest source of hard-rock lithium production. Talks are continuing with a range of potential offtake partners, with a view to forming a longer-term contract.