How have Sayona Mining shares risen 25% in just 2 days?

What on earth is going on with Sayona shares?

| More on:
An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted.

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

The S&P/ASX 200 Index (ASX: XJO) has had two highly volatile trading days. Yesterday saw the ASX 200 shed a depressing 0.74%. But today thus far, the ASX 200 has piled back on with a rise of 0.73% at the time of writing. But let's talk about the Sayona Mining Ltd (ASX: SYA) share price.

If you think the ASX 200 has been volatile, wait until you see what the Sayona share price has been up to. This ASX 200 lithium stock has gained an extraordinary 25% over just the past two trading days. Yep, Tuesday saw Sayona shares close at just 4 cents each.

But by market close yesterday, those same shares were up to 4.5 cents apiece. Today, the gains have just kept on coming, with Sayona adding an additional 13.3% to 5.1 cents.

So what on earth is going on with this embattled lithium stock this week?

How has the Sayona share price managed a 27% rise in two days?

Well, unfortunately, it's a bit of a mystery. Sayona's stunning share price rises have come out of the blue, for want of a better phrase.

We did get an ASX announcement from the company this morning. But that just announced that Lucas Dow has been appointed to Sayona's board as an independent non-executive director. Hardly the sort of stuff that sees a company add a third to its valuation over two trading days.

Before this announcement, Sayona's last ASX release was the 31 January quarterly cash flow report, which had a negative impact on the company's shares at the time.

However, it's not just Sayona that has vaulted dramatically higher in value this week. Core Lithium Ltd (ASX: CXO) shares have bounced by more than 11% since Tuesday's trading. Saying that, other lithium stocks like Pilbara Minerals Ltd (ASX: PLS) and Arcadium Lithium plc (ASX: LTM) have gone backwards.

In Sayona and Core Lithium's case, we could be seeing a bit of a short squeeze going on. As my Fool colleague James reported on Monday, both Core and Sayona remain on the list of the ASX's most short-sold shares.

Perhaps yesterday's rally has triggered a round of short sellers closing their positions, which in turn would have forced up both companies' share prices even further, and spurred more short sellers to close.

Whatever the reason, it's certainly been a good two days to own Sayona Mining shares.

Even with these gains though, the Sayona share price still remains down by more than 77% over the past 12 months.

Motley Fool contributor Sebastian Bowen 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 man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Why is this ASX lithium stock crashing 16% today?

Why is this stock having such a poor start to the week?

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Core Lithium share price hits a multi-year low: Will the tide change soon?

Are analysts now seeing value emerge from the lithium miner's shares?

Read more »

Yellow rising arrow on a brick wall with a man on a ladder.
Materials Shares

Brickworks share price jumps on big Soul Patts news

Brickworks has just built more stability to its business.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Materials Shares

Meet the speculative ASX stock that could rise 200%

Bell Potter thinks this high risk stock could triple your money.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Materials Shares

Guess which ASX 200 mining stock is making a $276m UK acquisition

BHP failed in its UK takeover attempt but this mining stock is having more luck.

Read more »

A man in his 30s with a clipped beard sits at his laptop on a desk with one finger to the side of his face and his chin resting on his thumb as he looks concerned while staring at his computer screen.
Materials Shares

Where could the Pilbara Minerals share price be in 12 months?

Will the market be kind to this lithium giant? Let's see what analysts are expecting.

Read more »

A female worker in a hard hat smiles in an oil field.
Materials Shares

Buy Rio Tinto and these 4 ASX mining stocks in June

Analysts think these miners could offer outsized returns over the next 12 months.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Materials Shares

Why are Sayona Mining shares down 80% in a year?

This lithium miner is having a tough time. What's behind this?

Read more »