ASX-listed Sayona Mining has posted strong operational results for the December quarter, with spodumene concentrate production at its North American Lithium (NAL) operation in Canada reaching 50,922 dry metric tonnes (dmt), bringing the project closer to its cash break-even point.
A significant milestone for the quarter was the announcement of a definitive merger agreement between Sayona and Piedmont Lithium, positioning the combined entity as a leading lithium business, with a balanced 50:50 equity split between their shareholders.
Additionally, Sayona successfully raised A$38 million in capital, with a further A$69 million in a conditional placement set to finalize upon the merger’s completion.
During the December quarter, NAL mined 370,409 wet metric tonnes (wmt) of ore, marking a 54% increase compared to the previous quarter. Lithium recovery improved to 68%, up by 1%.
Spodumene concentrate production remained steady 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 to 210,000 dmt. The expected unit operating costs are projected to range between $1,150/t and $1,300/t.
Sales activity strengthened, with NAL shipping two marine cargoes totaling 52,000 tonnes and an additional 14,000 tonnes sold to Piedmont, which was stockpiled at the Port of Quebec by the end of the quarter. In total, Sayona sold 66,035 dmt, a 35% increase from the previous 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, due to contract pricing lags.
This was 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 totaled A$7 million, primarily allocated to upgrades to the tailings storage facility and other site improvements.
Drilling programs continued at NAL and Moblan in 2024, with 53,444 meters drilled across 153 holes at NAL and 76,202 meters drilled across 281 holes at Moblan, both supported by flow-through share funding. While no further exploration is currently planned, results from these programs are being reviewed.
In Western Australia, drilling at the Mt Edon project, part of the Morella Lithium JV, confirmed significant pegmatite zones with rubidium and lithium mineralization. Exploration at West Wodgina identified five new lithium targets, while fieldwork at Tabba Tabba revealed additional pegmatite outcrops, with drilling planned for 2025.
