The S&P/ASX 200 Index (ASX: XJO) flew 6.2% higher during January and three ASX 200 lithium stocks were among its best performers.
Let's take a look at why.
Sayona Mining Ltd (ASX: SYA)
Sayona was a stand-out ASX 200 lithium stock in January. Between the close on 30 December and the close on 31 January, the share price rose by 37%. And that meteoric rise has continued, with Sayona Mining shares rising 6.7% yesterday for a collective increase of more than 40% already in 2023.
Continuing high lithium prices and optimism that prices may stay higher for longer boosted Sayona's fortunes. The company also reported progress with the restart of its North American project.
Pilbara Minerals Ltd (ASX: PLS)
This ASX 200 lithium stock charged 27% higher in January. A strong quarterly update gave the stocks a big nudge northwards. Production, sales volumes, and unit costs were all up quarter over quarter (qoq). Plus, the company increased its cash balance by a whopping 62% qoq to $2.226 billion.
That's handy, given Pilbara's plans to pay a maiden dividend in FY23. The company intends to pay 20% to 30% of its free cash flow as dividends. Also in January, Pilbara Minerals announced progress with the expansion of its Pilgangoora Project in Western Australia with the awarding of a construction contract.
Liontown Resources Ltd (ASX: LTR)
Getting an honourable mention here is Liontown, with its shares rising by 19% over January. The ASX lithium company released an update on its Kathleen Valley Lithium Project, revealing good and bad news. The bad: Construction is going to cost more than previous estimates. The good: This is partly due to expanded capacity, which will increase the initial throughput rate by 20% to 3Mtpa.
We also learned that Liontown chair Tim Goyder bought an extra $1.5 million worth of shares on-market during the month. The market wasn't so pleased with the quarterly report on 31 January, with Liontown shares dipping 5.7%. This took the shine off an otherwise strong performance from the ASX 200 lithium stock over the month.
