AUS
NZ
UK
CA
USA
IND
Highlights
- Sayona Mining requested a trading halt today which means all operations will be put on hold until a capital raising announcement is made by the company.
- This comes after releasing a dismal pre-feasibility study (PFS) for the North American Lithium (NAL) project.
- The lithium stock has lost 28% of its value since the end of last week.
The share price of Sayona Mining Ltd (ASX:SYA) has been struggling this week. The lithium stock has lost 28% of its value since the end of last week.
This comes after releasing a dismal pre-feasibility study (PFS) for the North American Lithium (NAL) project, a 75% owned enterprise in Québec, Canada.
Sayona requested a trading halt today (25 May 2022),, and all operations will be put on hold until a capital raising announcement is made. Its last share trading price was AU$0.205 per share.
According to the Australian Financial Review, the company is looking to raise AU$190 million from investors at an 18 cent per new share price. This implies a 12.2% discount from the previous closure price and a whopping 35.7% discount from Sayona Mining's closing price last week.
According to the report, the money will be used to support the restart of the aforementioned NAL project, development efforts at its Authier mine, exploration at the Moblan project, and the evaluation of downstream processing alternatives. All of these operations are based in Quebec, Canada, where the business plans to establish a lithium hub.
Also Read: SYA, CXO, PLS: Why are these ASX-listed lithium stocks in news?
NAL Project update
Piedmont Lithium Inc (ASX:PLL) today announced that its partner Sayona recently published a pre-feasibility study to restart spodumene concentrate operations at the North American Lithium (NAL) project in Quebec.
On Monday (23 May 2022), Sayona Mining shared that the technical and financial viability of the NAL project has been validated.
A pre-feasibility study (PFS) validated the mine's potential, which increased the mine's estimated life to 27 years.
The PFS was carried out by the company's subsidiary Sayona Quebec, which Sayona owns to the tune of 75% and Piedmont Lithium (PLL) to the tune of 25%.
Source: © Milslav78 | Megapixl.com
More about NAL project
The restored NAL operation and the Authier deposit and Sayona's burgeoning northern Québec centre of NAL and the nearby Authier Lithium Project make up North America's largest lithium (spodumene) resource base.
The primary development goal at NAL is to restore production with supplementary ore feed from Sayona Québec's (SYQ) 100% owned Authier Lithium Project, which is only 30 kilometres from the NAL site. NAL will first generate a lithium concentrate for general market conversion, but it will eventually become a key feed source for SYQ's downstream refined lithium products.
Sayona will be able to start production ahead of other North American projects, producing stable cash flows and putting the company on schedule to produce value-added lithium hydroxide or carbonate downstream. Because of its clean and sustainable hydropower, world-class infrastructure, and closeness to the market, Québec is quickly becoming a leader in the battery business.
Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 23 May 2022
Results and Assumptions
The PFS has a pretax NPV of AU$1.05 billion as of 23 May 2022 (8% discount rate), a pre-tax IRR of 140%, and a capital payback period of less than two years. Based on anticipated JORC Proved and Probable Ore Reserves of 29.2 Mt @ 0.96% Li2O (Proved Reserve 1.2Mt @ 0.92% Li2O and Probable Reserve 28.0Mt @ 0.96% Li2O), the mine's life has been extended to 27 years.
The above contains conservative allowances for diluted non-mineralised material from the upper and lower contact of the pegmatite / mining horizon.
