Sayona Mining share price hits two-year low

This ASX lithium share has tumbled yet again.

| More on:
a woman looks down at her phone with a look of concern on her face and her hand held to her chin while she seriously digests the news she is receiving.

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

The Sayona Mining Ltd (ASX: SYA) share price fell 6.2% to a new two-year low of 7.6 cents today.

This follows the release of the explorer's latest quarterly activities report yesterday.

Let's check it out.

Highlights of 1Q FY24 for Sayona Mining

Over the three months to 30 September:

  • 224,420 wet metric tonnes (wmt) of ore mined, down 1% quarter over quarter (qoq)
  • 31,486 dry metric tonnes (dmt) of lithium spodumene concentrate produced, up 6% qoq
  • 48,211 dmt sold at an average price of $1,985 per dmt
  • Unit operating costs of $1,231 per dmt
  • Revenue of $96 million
  • Cash balance of $233 million, up 10% qoq

Sayona Mining said production at its flagship North American Lithium (NAL) Project fell 1% due to lower equipment availability and the retraining of staff to enhance longer-term efficiencies.

Spodumene concentrate production was in line with targets.

The company commented:

The operations team at NAL continues to focus on improving process plant utilisation, throughput and recovery with initiatives such as the Crushed Ore Dome expected to improve mill utilisation.

Sales were also in line with expectations, with three shipments setting sail in September. The concentrate on board was sold to 25% JV partner Piedmont Lithium Inc (ASX: PLL) under the offtake agreement.

Sayona issues fresh FY24 guidance

Sayona Mining issued new production guidance for NAL in FY24.

Assuming that the NAL process plant reaches steady-state production levels by Q4 FY24, Sayona expects to produce between 140,000 and 160,000 dmt of spodumene concentrate at 5.4% Li2O in FY24.

The company is guiding sales of between 160,000 and 180,000 dmt of spodumene concentrate.

The company said it will continue the ramp-up to steady-state production at NAL during FY24. It will issue unit operating cost guidance once NAL achieves steady-state production.

Sayona Mining share price snapshot

Shares in the lithium and graphite miner have tumbled 60.5% in the year to date. Meantime, the S&P/ASX All Ordinaries Index (ASX: XAO) has lost 2.25% over the same time period.

Sayona remains among the top 10 most shorted ASX shares, with a short interest of 9.2%.

My Fool colleague Sebastian notes that professional traders are betting against ASX lithium shares en masse right now, given their expectations that lithium commodity prices will continue to weaken.

There's also significant volatility in the market today, made worse by the Israel-Gaza conflict this month.

Since the start of August, the ASX All Ords has declined 8.5%.

As Seb points out, ASX growth stocks and small-cap shares are more susceptible to market sell-offs because they're priced on their potential, not on profits.

Sayona Mining will hold its annual general meeting in Brisbane on 30 November.

Motley Fool contributor Bronwyn Allen 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 female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Materials Shares

Why are Fortescue shares charging higher today?

What is getting investors excited today? Let's find out.

Read more »

Business people discussing project on digital tablet.
Materials Shares

What does Macquarie think Liontown Resources shares are worth?

Let's see if analysts think that this lithium miner is in the buy zone or best avoided.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Materials Shares

Lynas shares charge higher on big news

What is getting investors excited today? Let's find out.

Read more »

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

Liontown Resources shares roar higher on big news

This lithium miner is catching the eye with some big news. Here's what is happening.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

What does Macquarie think BHP shares are worth?

Is now a good time to buy the miner's shares? Let's find out.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Materials Shares

What does Macquarie think Pilbara Minerals shares are worth?

Is this lithium miner dirt cheap? Let's find out.

Read more »

Two miners standing together.
Materials Shares

Is it time to buy this beaten down lithium share?

This diversified miner’s share price has been hit on multiple fronts. What does it mean for investors?

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Pilbara Minerals share price falls on 30% quarterly revenue slump

ASX investors are bidding down Pilbara Minerals shares on Thursday. Here’s why.

Read more »