Sayona reports strong operational quarter, progress on merger with Piedmont
ASX-listed Sayona Mining has reported a quarter of strong operational performance, with spodumene concentrate production at its North American Lithium (NAL) operation in Canada reaching 50 922 dry metric tonnes (dmt) as the project nears cash break-even.
A key milestone the December quarter was the announcement of a definitive merger agreement between Sayona and Piedmont Lithium, positioning the combined entity as a leading lithium business with an about 50:50 equity split between their shareholders. Further, Sayona successfully completed a A$38-million capital raise, with an additional A$69-million conditional placement set to finalise upon completion of the merger.
During the December quarter, NAL mined 370 409 wet metric tonnes (wmt) of ore, marking a 54% increase from the previous quarter. Lithium recovery improved to 68%, up by 1%.
Spodumene concentrate production remained at 50 922 dmt, with an average grade of 5.3% Li2O, keeping the company on track to meet its full-year production targets of 190 000 dmt to 210 000 dmt and expected unit operating costs in the range of $1 150/t to $1 300/t.
Sales activity also strengthened, with NAL shipping two marine cargoes totalling 52 000 t and an additional 14 000 t sold to Piedmont, which was stockpiled at the Port of Quebec at the end of the quarter.
In total, Sayona sold 66 035 dmt, a 35% increase from the prior quarter.
Revenue climbed to A$70-million, up 33%, driven by higher sales volumes. The average realized selling price (FOB) was A$1 054/dmt ($686/dmt), reflecting a slight 1% decline owing to contract pricing lags, partially offset by increased sales to Piedmont under the offtake agreement and positive quotational period adjustments.
Unit operating costs per tonne sold improved, declining by 6% to A$1 258/dmt ($823/dmt), benefiting from increased sales volumes and lower cash operating expenses. Capital expenditure for the quarter totalled A$7-million, primarily allocated to upgrades to the tailings storage facility and other site improvements.
Drilling programmes continued at NAL and Moblan in 2024, with 53 444 m drilled across 153 holes at NAL and 76 202 m across 281 holes at Moblan, both supported by flow-through share funding. While no additional exploration is currently planned, results from these programmes are under review.
In Western Australia, drilling at the Mt Edon project as part of the Morella Lithium JV confirmed significant pegmatite zones with rubidium and lithium mineralisation. Exploration at West Wodgina identified five new lithium targets, while fieldwork at Tabba Tabba revealed additional pegmatite outcrops, with drilling planned for 2025.
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