Why Sayona Mining’s (ASX:SYA) shares jumped over 8% today

October 25, 2022 02:45 PM AEDT | By Bhawna Gupta

Why Sayona Mining’s (ASX:SYA) shares jumped over 8% today — Image source: © Design56 | Megapixl.com

Why are Sayona's shares trading up?

Sayona was added to ASX 200 index (ASX:XJO) last month. The company has become an ASX lithium staple since then.

Piedmont Lithium Inc. (ASX:PLL) is Sayona's current major shareholder. The two companies have worked together for lithium projects in Canada.

The rise in Sayona's share price might be because of the Quebec rail contract, which the company announced on 18 October 2022. Since then, the company's shares have mostly been trading on the higher side.

Sayona signs Quebec rail contract

Sayona reported last week (October 18) that it had created a transport solution for its North American Lithium (NAL) operation and had granted a contract to a Québec rail operator to supply NAL spodumene (lithium) concentrate to port.

According to the deal, Solurail Logistique Inc., a Val d'Or business that specialises in bulk transhipment and rail logistics, will be in charge of delivering lithium to clients from the NAL operation in La Corne to the Port of Trois-Rivières.

Part of the CA$43 million (about AU$48 million) deal is the rental of 110 rolling stock (railway vehicles), which will be made available when NAL's manufacturing resumes in the first quarter of 2023.

Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 18 October

Stock performance: In the last five trading sessions, Sayona's share price has increased by more than 15%. The lithium company's shares have declined more than 27% in the last six months but jumped over 82% on a year-to-date basis.

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