The Sayona Mining Ltd (ASX: SYA) share price is under pressure again on Thursday.
In morning trade, the lithium miner's shares are down 6% to a multi-year low of 3 cents.
Image source: Getty Images
What's going on with the Sayona Mining share price?
Investors have been heading to the exits today after the lithium miner released its latest quarterly update and yet again revealed that it is selling lithium for less than it costs to produce.
According to the release, Sayona Mining achieved record production of 49,660 tonnes of spodumene concentrate at an average grade of 5.3% for the quarter. This was up 23% on the prior quarter thanks to excellent mill utilisation and recovery.
Management also highlights that daily production reached a new record of 919 tonnes in June and monthly production reached 19,314 tonnes in May.
The company achieved its record quarterly production with NAL unit operating costs of A$1,506 (US$995) per dry metric tonne (dmt). This is down 2% quarter on quarter.
But also reducing quarter on quarter was the price it commanded for its lithium. Total concentrate sold during the quarter was 27,729 dry metric tonnes with an average realised selling price (FOB) down 11% to A$885 (US$604) per dmt.
This means it is selling its lithium for A$621 (US$391) per dmt less than it costs to produce.
Revenue tumbles
This ultimately led to NAL revenue falling 58% quarter on quarter to A$25 million. Though, it is worth noting that there was a delayed shipment due to weather, which will now be recognised in the current quarter.
Consequently, shipments in the September quarter are now expected to be a minimum of 50,000 dmt and up to 65,000 dmt depending upon the timing of a shipment scheduled for late September.
At the end of the period, Sayona Mining's cash balance had dropped 8% to A$91 million. This includes proceeds of $14.7 million from the sale of equity investments and other one-offs.
Management commentary
Sayona Mining's interim CEO, James Brown, was pleased with the quarter. He said:
It was a quarter of record operational performance for Sayona, with concentrate production at NAL increasing 23% Quarter on Quarter (QoQ) to 49,660 dmt. Mill utilisation has improved materially over the prior quarter to 83%.
Brown stated his belief that the company is well-positioned for when the lithium market recovers. He adds:
Sayona boasts an impressive portfolio of projects and exploration tenements poised to create significant value for shareholders. While market conditions remain challenging, Sayona remains focused on improving operational results and ensuring the Company is well positioned for the eventual upturn.
Despite operating at a loss, there was no talk of suspending operations to conserve cash.
The Sayona Mining share price is down over 80% since this time last year.
