Image Source: © Robertohunger | Megapixl.com
- Shares of Sayona have been registering majestic returns over the past five years, with share price up by 2,800%.
- In last one year, the stock has gone up 141%.
- In last couple of weeks, the stock’s performance has been driven by the update on North American Lithium restart.
- Sayona expects the first production by the first quarter of the financial year 2023.
Shares of Sayona Mining Limited (ASX:SYA) have delivered magnificent gains in the past few weeks. In one month alone, the company registered a gain of 107%, taking the six months gain to over 123.08% high.
Talking about the past five years' performance, Sayona’s share price skyrocketed by 2,800% (as of 1:10 PM AEST).
While sharing the quarterly activities report for the June quarter of 2022 (29 July 2022), the company informed the market that Piedmont and Sayona both approve of restarting the spodumene concentrate production at North American Lithium (NAL).
Reportedly, the NAL restart would present substantial operational upgrades with a total value of AU$110 million to enhance product quality. To speed up the restart of NAL, the organisation has taken up several steps such as obtaining all necessary regulatory approvals, progressing the engineering design work, recruiting key personnel and securing long-lead equipment items.
Image source: © Elvector | Megapixl.com
Restarting the NAL operation would result in revenue generation for Sayona. Also, it would be a step up to become a leading lithium producer in North America.
Sayona said after restarting the operations, an agreement with piedmont would become effective, under which the company (Piedmont) would buy 113,00 metric tons of spodumene concentrate annually or 50% of the NAL’s production.
On 4 August, Sayona shared that NAL operations have picked up the pace and are on track for the first production. Approximately 30% of the equipment and plant upgrade has been completed, and the crusher and magnetic separator has arrived at the location.
As of 4 August, 50 construction workers were available on-site, estimated to increase two-fold by September. In addition to this, the appointment of senior management is also in place.
Sayona said the production is expected to recommence by the first quarter of 2023. With this, it would become the only local spodumene concentrate supplier in North America.
To ensure that the production dates are met, the company actively engages with its supplier to handle any supply chain-related challenges. Also, it is monitoring the potential late deliveries and is putting a contingency plan in place.
Shares of Sayona are heading north today (11 August 2022), although the company did not release any price-sensitive update. At 1:18 PM AEST, Sayona shares were spotted trading 9.433% higher from its previous close to trade at AU$0.290 per share. Around the same time, ASX 200 Materials (INDEXASX:XMJ) was 1.173% up.
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