The Sayona Mining Ltd (ASX: SYA) share price is having a tough finish to the week.
In morning trade, the lithium miner's shares are down 9% to 4 cents.
Why is the Sayona Mining share price sinking?
Investors have been flooding to the exits today after the company announced an operational review of North American Lithium (NAL) operation in collaboration with its joint venture partner.
According to the release, the operational review is seeking to optimise NAL's cost structure in response to rapidly changing conditions in the global lithium market.
The review will be focused on opportunities to reduce the operation's cost base, manage cash flow, and preserve the Quebec-based operation's financial sustainability in a challenging market environment.
Sayona Mining expects to complete the review by the end of the first quarter of calendar 2024 and will announce the outcome to its shareholders and other stakeholders.
Interim CEO, James Brown, revealed that the plan is to keep operating if possible. He said:
This review of our Quebec operations is focusing on reducing our cost base, enhancing productivity and improving Sayona's ability to continue to produce lithium throughout the market cycle.
As the only operating hard rock lithium mine in North America, NAL is well positioned to remain a strategic source of lithium for the North American battery and EV market. While current market conditions are challenging, we are confident that the long-term outlook for lithium remains positive as the energy transition gains momentum and the shift to an electrified world continues.
In addition, as part of the review, the CEO of its Quebec subsidiary Sayona Inc, Guy Belleau, has departed his role with immediate effect after approximately one year at the helm.
Sayona Mining's Chief Operating Officer for Quebec, Sylvain Collard, will assume direct management of these operations, reporting to Mr Brown in Australia.
The Sayona Mining share price is now down 86% over the last 12 months.
