The team at North American Lithium (NAL), in Quebec, has delivered a strong quarter, with record concentrate production and significant improvements in safety performance, reports Sayona Mining MD and CEO Lucas Dow.

NAL produced a record 52 141 dry metric tonnes (dmt) of spodumene concentrate in the September quarter, keeping the company on track to achieve its full-year guidance of 190 000 dmt to 210 000 dmt.

Dow reports that NAL is approaching steady-state operations.

“The full benefit of the crushed ore dome is now starting to be realised by providing a buffer between the mill and crusher circuit ensuring that regardless of any stoppages in the crusher circuit the mill continues to receive feedstock to allow operations to continue,” he says.

The crushed ore dome is designed to act as a secondary supply source of crushed ore to the mill to maintain process plant utilisation. The dome has a storage capacity of about 6 000 t of crushed ore.

Mill utilisation, however, averaged 91% in the September quarter. This was partially offset by slightly lower feed grade and lower recovery with the increased use of WHIMS magnetic separators.

Revenue was materially higher during the quarter at A$52-million, as the operation caught up on shipping which returned to a more normal level of 48 992 dmt at about 5.4% lithium oxide. During the quarter NAL commenced making larger shipments with a pooled cargo of about 30 000 dmt which resulted in a freight saving of circa $50/t on shipments to the international market.

The shipping cost improvement along with a change of commercial terms and a different customer is reflected in the higher average realised price of A$1 067/t.

Unit operating cost sold decreased 11% to A$1 335/t benefitting from lower process plant downtime costs as well as lower expenditure across the mining operation.

Meanwhile, Dow reports that September was the first triple zero safety month with no lost-time injuries, no modified duty injuries and no medical aid injuries.

“We believe that a safe operation leads directly to a productive and efficient operation and so we will continue to focus on safety, production and cost as the key metrics for our business,” says Dow.

He adds that market conditions remain challenging, but that Sayona continues to focus on optimising and improving operational results to ensure the company is well positioned for the eventual upturn in the lithium industry.