Insights

Sayona share price lights up on ‘rapid progress’ toward production

Sayona takes another step in the right direction.
The post Sayona share price lights up on ‘rapid progress’ toward production appeared first on The Motley Fool Australia. –

Interest is picking up again in the Sayona Mining Ltd (ASX: SYA) share price on Thursday after the company’s latest announcement.

While the enthusiasm appears to be fading throughout today, the above-average volume traded of 46 million shares displays the heightened intrigue among investors. At the time of writing, shares in the ASX lithium share are fetching 20.5 cents apiece, up 5.13%.

Accounting for today’s gain, the Sayona share price is approximately 58% above its 13 cents a share rut in mid-July.

Could profits be around the corner?

As the late and great Benjamin Graham said, “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” When it comes to weighing up a company’s value, nothing is as important as earnings.

For Sayona, operational earnings are not yet a reality due to the exploratory and development stage it is currently in. This fact was pointed out in an article penned by my colleague Zach Bristow last week. However, the possibility of profits has taken another step in the right direction today.

According to the release, the restart of the North American Lithium (NAL) operation in Québec, Canada is picking up pace. Approximately 30% of plant and equipment upgrades are said to be completed. This is expected to accelerate with the number of construction workers on site set to double to 100 by September.

As a result, management believes the first spodumene concentrate will be produced in the first quarter of 2023. This is in line with prior timelines, as the company looks to take advantage of the government’s 100% local battery supply chain ambitions.

Furthermore, it appears the update has captured the hopes of investors today. Currently, the Sayona share price is moving up and to the right.

What else is moving the Sayona share price?

The gravity of today’s announcement was emphasised by Sayona managing director Brett Lynch, stating:

It is extremely pleasing to see the rapid progress at NAL as we ramp up towards the recommencement of lithium production.

With virtually all of the NAL operation powered by hydroelectricity, this is truly one of the world’s most sustainable lithium operations, an important ESG differentiator in an industry that aims to facilitate global decarbonisation.

Positively, the lithium price has stabilised at around US$70,500 per tonne according to Trading Economics. The next important aspect investors will be searching for is whether Sayona can produce lithium at an attractive all-in cost.

The Sayona share price is up 58% so far this year. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 6% in 2022.

The post Sayona share price lights up on ‘rapid progress’ toward production appeared first on The Motley Fool Australia.

Should you invest $1,000 in Sayona Mining Ltd right now?

Before you consider Sayona Mining Ltd, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Sayona Mining Ltd wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of July 7 2022

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Up 33% in July, why did the Sayona share price have such a stellar month?
Is ASX lithium company Sayona Mining profitable?
Why is the Sayona Mining share price up 35% this week?
Sayona shares sail 8% ahead amid government’s call to secure energy supply
Why is the Sayona Mining share price tumbling 6% today?

Motley Fool contributor Mitchell Lawler 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate
Popular

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here To Get Started
EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here For More Info