Sayona Mining share price leaps 7% on lithium project news

Sayona shares are rebounding strong today after yesterday's sell-off.

| More on:
Man pointing at a blue rising share price graph.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Sayona shares up almost 7% today after falling more than 20% in a week 
  • The company announced it has awarded a contract to Fournier & Fils to supervise mining operations at Sayona's North American Lithium (NAL) operation 
  • The company is targeting the restart of production at NAL in the first quarter of 2023 

The Sayona Mining Ltd (ASX: SYA) share price is powering ahead today.

This comes after the company provided an update on its North American Lithium (NAL) operation.

At the time of writing, shares in the emerging lithium producer are up 6.82% to 23.5 cents.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.23% to 6,484.4 points.

What's lifting the Sayona Mining share price?

Investors are bidding up Sayona Mining shares following the company's announcement that it is moving closer to restarting production at its NAL operation.

According to its release, Sayona Mining advised it has awarded Quebec mining operator, L. Fournier & Fils a four-year contract.

Valued at C$200 million (A$226 million), this will see Fournier & Fils supervise mining operations and services. This includes stripping and drilling, blasting, loading and transportation of ore and waste rock, and the maintenance of mining roads.

The drilling and blasting work will be undertaken by another local Quebec company, Dynamitage Castonguay.

Works will commence from next month, with the restart of production at NAL targeted within the first quarter of 2023.

Sayona Mining managing director Brett Lynch commented on the company's progress, saying:

We are delighted to further advance NAL towards the recommencement of production in the first quarter of 2023, with the selection of a skilled and experienced mining operator being a crucial step in this process.

With both demand and pricing for lithium currently at all‐time highs, we are well placed at NAL to become the first supplier of spodumene in North America, paving the way to becoming the region's leading supplier of lithium carbonate/hydroxide.

Sayona share price summary

The Sayona Mining share price has gained more than 30% over the past 12 months and is up almost 80% in 2022.

Based on today's price, Sayona presides a market capitalisation of approximately $1.83 billion.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.
Materials Shares

Mineral Resources shares drop on compliance update

The Australian stock exchange operator has been busy quizzing the miner.

Read more »

A man looking at his laptop and thinking.
Materials Shares

Are Pilbara Minerals shares a buy, sell, or hold for 2025?

Let's see if analysts think this lithium giant should be in your portfolio now.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Materials Shares

4 popular ASX lithium shares going gangbusters on Tuesday

Pilbara Minerals and three other lithium stocks are having a particularly strong session.

Read more »

Miner looking at a tablet.
Resources Shares

South32 shares sink amid $33 million copper investment

Copper continues to be in hot demand.

Read more »

Three miners looking at a tablet.
Materials Shares

Should you buy BHP shares amid 2024's weakness?

Is now the time to pounce on the mining giant's shares? Here's what analysts are saying.

Read more »

Lion holding and screaming into a yellow loudspeaker on a blue background, symbolising an announcement from Liontown.
Materials Shares

Here's why the Liontown share price could rise almost 70%!

Bell Potter thinks this lithium miner could be a high risk/high reward option for investors.

Read more »

Man with rocket wings which have flames coming out of them.
Materials Shares

Why is the Novonix share price rocketing 16% on Monday?

Big news is giving this stock a huge lift on Monday morning.

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Materials Shares

Liontown shares fall on major guidance and cost update

Big changes are being made at this lithium miner due to weak prices.

Read more »