What is boosting Sayona’s (ASX:SYA) share price over 7% higher today?

October 05, 2022 11:45 AM AEDT | By Ashish

What is boosting Sayona’s (ASX:SYA) share price over 7% higher today? — Image source: © Bwylezich | Megapixl.com

Highlights

Sayona’s shares were trading in the green on Wednesday.

The ASX-listed lithium developer’s shares were trading at AU$0.27, up 5.88%, or 0.015 points, at 10:45 AM (AEST).

This outperforms ASX 200 Materials index, which was trading 0.80% higher at 16,023.40 points.

Sayona Mining Ltd’s (ASX:SYA) share price witnessed a sharp rise on Wednesday despite the company releasing no price-sensitive update. Sayona’s share price surged as high as AU$0.28, up by 7.6%, compared with its previous closing value of AU$0.29. The ASX-listed lithium developer’s shares were trading at AU$0.27, up by 5.88%, or 0.015 points, at 10:45 AM (AEST). This outperforms the ASX 200 Materials index, which was trading 0.80% higher at 16,023.40 points. Meanwhile, the ASX 200 index was trading 1.44% higher at 6,795.60 points.

Sayona’s shares have fallen nearly 2% in the past month. On a year-to-date basis, the stock has gained over 82%. The share price has increased 70% in the past year. In the past six months, the stock declined nearly 18%.

What is boosting Sayona’s share price today?

As already mentioned, there was no fresh trigger for the share price. However, Sayona’s shares may have gained following a strong overnight trading session on Wall Street. The Dow Jones rose 2.8%, the S&P 500 surged 3.06%, and the NASDAQ ended 3.34% higher. The lithium shares, considered high-risk options, have performed positively this week.

The other catalyst may be Tuesday’s announcement that Sayona was examining the options for lithium carbonate or hydroxide production in Québec. The ASX release said that a prefeasibility study (PFS) was launched to look at the potential production of lithium carbonate at the North American Lithium (NAL) operation.

“The PFS will examine the option of producing lithium carbonate from spodumene (lithium) produced at NAL, where production of spodumene concentrate is scheduled to commence from Q1 2023. The potential move downstream is a significant potential value‐adding boost in enhancing the long-term value and profitability of the NAL operation,” Sayona said.

What did Sayona’s management say?

Sayona’s management said that the proposed move downstream was a value‐adding boost in increasing the value and profitability of the NAL operation.

“Moving downstream has always been the plan for Sayona in Québec to enable a increase in profitability, whether through lithium carbonate or hydroxide production. We look forward to examining the results of the PFS, amid accelerating demand from the battery and electric vehicle sector,” said Sayona Mining’s managing director, Brett Lynch.

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