ASX lithium stock Sayona Mining Ltd (ASX: SYA) is racing higher today.
Shares in the North American lithium producer closed yesterday trading for 2.6 cents. In morning trade on Wednesday, shares are changing hands for 2.8 apiece, up 7.7%.
For some context, the All Ordinaries Index (ASX: XAO) is up 0.3% at this same time.
Today's gains will be welcomed by shareholders who've watched shares in the ASX lithium stock crash 71% over the past year as global lithium markets remain oversupplied and prices subdued.
Investor enthusiasm looks to have been spurred today by Sayona Mining's ASX Small and Mid-Cap Conference presentation.
ASX lithium stock expanding its mineral resources
Among the highlights of FY 2024, a year that saw Lucas Dow appointed as CEO of Sayona Mining, the ASX lithium stock successfully ramped up operations at North American Lithium (NAL).
Sayona Mining owns 75% of NAL, with Piedmont Lithium Inc (ASX: PLL) owning the other 25%.
FY 2024 saw NAL approach steady-state operations. Total concentrate production reached 155,822 dry metric tonnes (dmt) for the full year. May was particularly strong, with a record monthly production of 19,314 tonnes.
Over the 12-month period, spodumene concentrate shipments to customers in the United States and China totalled 157,937 dmt. This led to a maiden full year revenues of $201 million generated by NAL.
However, Sayona Mining still posted a loss after income tax of $119 million, with management pointing to costs relating to NAL depreciation expense and non-cash extraordinary items.
Sayona also highlighted the extensive exploration programs it completed at NAL and its Moblan project in Quebec, along with an initial drill campaign at Tabba Tabba in Western Australia.
The ASX lithium stock expects to complete an additional 70,000 metres of drilling at Moblan and 30,000 metres at NAL by the end of calendar year 2024.
Sayona Mining increased its Mineral Resource at NAL by 51% to 88Mt, with an 81% upgrade at Moblan to 93Mt.
Market conditions and guidance
Looking at the impact of global market conditions, management said, "Current market conditions favour a staged development of upstream assets before progressing into downstream capacity in line with market requirements."
The ASX lithium stock also cautioned that "EV penetration rates have slowed as cost-of-living pressures/inflation and high interest rates have had an impact with global auto volumes 20% below pre-COVID levels."
Management said that while there have been some global supply cutbacks, "the significant investment in lithium at the top of the cycle will impact price recovery in the near-medium term".
On the plus side, Sayona said, "Longer term fundamentals remain strong with market forecasters expecting lithium chemicals deficits from later this decade."
For FY 2025 guidance, the ASX lithium stock forecasts spodumene concentrate production of 190,000 to 210,000 dmt and sales of 200,000 to 230,000 dmt.
On the cost front, the miner expects FY 2025 capital expenditure to be AU$20 million, with exploration expenditure of AU$30 million.
