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Highlights
- On Monday, Sayona shares closed 4.348% lower at AU$0.220 per share on ASX.
- Shares of Sayona Mining Limited have been on investors’ radar given the surge in lithium demand driven by the growth of electric vehicles (EVs).
- In the last one year, Sayona shares have gained 450%
The shares of Sayona Mining Limited (ASX:SYA) traded in red on Monday (March 28), closing 4.348% lower at AU$0.220 per share on ASX.
In today’s intraday trading session, at one point, the company’s shares were spotted trading over 2% higher at AU$0.242 per share on ASX at 11:38 AM AEDT.
The share price of Sayona Mining Limited (ASX:SYA) has been on an upward trend since the beginning of this month. In the last one year, Sayona the shares have gained 450%, while the stock is up almost 57% on year-to-date (YTD).
Sayona’s stocks have been on investors’ radar after the company announced its decision to enhance its lithium resource base, given the surging demand for Lithium at the beginning of this month. The company has doubled its Québec lithium resource base following upgraded estimates for the North American Lithium (NAL) and Authier projects.
Is it the right time to invest in an electric vehicle?
ASX-listed lithium companies have witnessed their share prices rise drastically in the past year. According to the IEA, the global electric vehicle (EV) market is anticipated to expand to almost 145 million by 2030. It is believed that Lithium demand for EVs and battery storage will surpass 80% of all lithium demand by 2030. With the entry of major players like Tesla, Volkswagen, General Motors, and Ford into the game, it becomes evident that the trend is going to stay. EV stock share in 2030 will reach 12%, said IEA in its 2021 outlook.
Read More: From IMC to ALA: Healthcare stocks with best YTD returns
Image Source: © Info40555 | Megapixl.com
Where to invest, lithium stocks or in EV makers?
In this drastic green shift, investors’ are mostly perplexed when it comes to deciding which one is the safer investment option- EV maker or Lithium stocks. Analysts believe that this depends on the battery composition going ahead.
Experts believe that for every 1% growth in EV market penetration, there is an increase in lithium demand by around 70,000 tonnes lithium carbonate equivalent (LCE) /year.
Sayona Mining Limited is an ASX-listed resource company and an emerging lithium producer.
Last year saw many ASX lithium shares benefiting from skyrocketing prices for the electrifying material, mainly due to growing demand for EVs.
Read More: Jindalee Resources (ASX:JRL) capitalising on promising trends in US lithium market
If we look at the last 12-month performance of other ASX-listed lithium companies Mineral Resources Ltd (ASX:MIN) shares price is up over 49%, Pilbara Minerals Ltd (ASX:PLS), up almost 208%, Liontown Resources Limited (ASX:LTR), up over 325%.
Sayona’s financials
As of 31 December 2021, the company reported its total assets at AU$444,895,939, including cash balances of AU$30,128,153, property, plant & equipment of AU$201,255,083, including mine and exploration assets of AU$208,378,440.
