AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights:
- With the steep drop in iron ore prices over the past month, many ASX 200 mining stocks have fallen.
- The industrial metal has come under fire because of the gain made by the US currency.
- This is also because of the slow demand for iron ore in China, Australia's major export market.
As the global demand for electric cars (EVs) has grown, lithium prices have risen rapidly. Spodumene (a pyroxene mineral made up of lithium aluminium inosilicate) prices soared to US$1300 a tonne in 2021, up from an average of US$400 in 2020. The growing demand for electric vehicles is also helping the prices of aluminium, nickel, zinc, and copper.
However, with the steep drop in iron ore prices over the past month, many ASX 200 mining stocks have fallen.
The industrial metal has come under fire because of the gain made by the US currency due to a hawkish Federal Reserve. On foreign markets, iron ore is traded in US dollars, therefore a rising dollar has pushed the price down, reducing profit margins for ASX 200 mining stocks.
Simultaneously, demand for iron ore in China, Australia's major export market, remained slow. This is largely owing to government-imposed steel output restrictions. And it's likely due to a sluggish Chinese economy, as the country continues to quarantine millions to combat COVID-19 as part of its zero-virus policy.
On this note, we will talk about the performance of Sayona Mining Limited (ASX:SYA) in this article.
Shares of Sayona Mining closed flat at AU$0.25 per share. Although there was no change in the share price from its previous closing price, but ASX 200 Materials Index closed 0.87% higher at 16,722.50 points on Wednesday (11 May 2022).
The company's shares have fallen around 16% in the last one month; however, the company has provided an over 600% growth to its shareholders in the last one year. This was mainly because of the rising demand of lithium in EV industry.
Also Read: Sayona Mining (ASX:SYA) shares end 7% lower today, here's why
Source: © Samrat35 | Megapixl.com
About Sayona Mining
Sayona Mining is a lithium producer with properties in Québec, Canada, and Western Australia.
The company's holdings in Québec include North American Lithium, the Authier Lithium Project, and the Tansim Lithium Project, all of which are backed by a strategic collaboration with American lithium producer Piedmont Lithium Inc (ASX:PLL). In addition, Sayona owns a 60% share in the Moblan Lithium Project.
Sayona owns a substantial tenement portfolio in Western Australia's Pilbara region, which is rich in gold and lithium. Sayona is looking for gold prospects in the Hemi style, and its lithium properties are covered by an earn-in arrangement with Morella Corporation (ASX:1MC).
Source: © Tomas1111 | Megapixl.com
Moblan Lithium Project
Drilling data from the Moblan Lithium Project in northern Québec revealed a new southern lithium pegmatite zone near the main Moblan deposit on 26 April 222, according to Sayona. The company controls 60% stake in this project.
Mallina Lithium Project
On 22 April 2022, Morella Corporation provided an update on exploratory activities at the Mallina Lithium Project (E47/2983) as well as the Mt Edon Lithium Project (E59/2092/E59/2055).
Sayona Mining's potential lithium development portfolio in Western Australia is 51% owned by Morella Corporation. Sayona's Pilbara portfolio includes the Mallina project. Within a 25-square-kilometer area, many zones of spodumene pegmatites have been discovered.
Also Read: Here’s why Sayona Mining (ASX:SYA) shares are trading in red today
