Sayona Mining shares sink to new 52-week low following AGM update

This lithium miner continues to sink deep into the red.

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Sayona Mining Ltd (ASX: SYA) shares are having a tough time on the day of the company's annual general meeting.

In afternoon trade, the lithium miner's shares are down 6% to a new 52-week low of 6.1 cents.

Why are Sayona Mining shares falling today?

Investors have continued to hit the sell button today despite management reiterating its belief that the company has a bright future ahead of it thanks to the expected growth in demand for lithium.

It seems the market is more focused on short-term prices right now and what that might mean for its bottom line.

Commenting on lithium prices, the company's interim CEO, James Brown, said:

The resources industry is subject to economic cycles and lithium is no exception. The past year has seen lithium prices fall significantly, which has been reflected in market valuations. However, Sayona is confident market prices for lithium will stabilise, supporting our operational plans.

Analysts continue to point towards massive demand growth for battery metals to fuel the clean energy transition. The International Energy Agency estimates lithium demand could grow by over 40 times by 2040 compared to 2010 levels, due to the growth of electric vehicles and battery storage.

Brown also points out that Sayona Mining has the asset base to help meet this demand. He adds:

New sources of lithium production are essential to meet this demand and Sayona is well placed to benefit with an exciting portfolio of producing and development assets located in Québec, a leader in sustainable mining in North America.

What else?

Sayona Mining remains without both a permanent CEO and chairman, which isn't something you see often on the ASX 200 index.

However, management has stressed that appointing someone to these roles is a priority. It said:

The Company is committed to improving communication and engagement with investors, which will be further enhanced through the appointment of an independent Chairman and new CEO.

The Board's next priority is the appointment of an independent Chairman, targeting the first half of 2024. Following this, the Board intends to appoint another independent Director and a new CEO. These appointments will provide greater skills and diversity to the Board and facilitate more effective corporate governance. The Board is also reviewing Non-Executive Director and executive remuneration to ensure the Company's remuneration framework is aligned with the expectations of shareholders.

Sayona Mining's shares are now down approximately 75% over the last 12 months.

Motley Fool contributor James Mickleboro 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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