Sayona Mining Limited (ASX: SYA) is an ASX-listed lithium producer with assets in Quebec, Canada, and Western Australia. The company is a promising and emerging lithium producer.
Among Sayona’s holdings in Québec are North American Lithium, which includes the Authier Lithium Project, and the Tansim Lithium Project, which is being developed via a strategic collaboration with American lithium producer Piedmont Lithium Inc. (Nasdaq: PLL; ASX: PLL). Another project in northern Quebec that the company has a 60% part in is the Moblan Lithium Project, with the remaining 40% owned by SOQUEM.
There are a lot of tenements in Western Australia that the company owns that are good places to look for gold and lithium. At Sayona’s Pilbara gold exploration site, the company is looking for Hemi-style gold opportunities, while at Morella’s lithium projects, the Sayona has an earn-in arrangement with Morella.
SYA: 1H22 Key Financials
SYA stock is currently trading at $0.20 and has gained more than 412% in the last twelve months. The company has started working on different lithium projects across the globe, which has resulted in a sudden stock increase.
- The company’s revenue was $108.5 million in the first half of 2022. While revenue in the same period last year was $336K reflecting a 32,180% increase year-over-year.
- Net profit after tax was $93.9 million in 1H22. Compared to the $983K in 1H21, it’s an increase of around 9500% year-over-year.
- The company’s basic and diluted earnings per share were $1.5 and 1.4 in 1H22.
- Sayona Mining announced no dividends.
- As of 31 December 2021, the company had cash and cash equivalents of $30.12 million.
- A total of 38,633,420 shares, each worth A$0.11, were awarded to company executives during the annual general meeting on 28 January 2022. At the same time, there were 40,000,000 options to convert to new shares for A$0.15 that expire on 28 July 2023.
SYA is on Trading Halt
In a press release today, the company announced that its management has decided that the securities of Sayona Mining Limited (SYA) will be placed on a trading halt pending its release. Unless ASX decides otherwise, the securities will remain on a trading halt until the earlier of the commencement of regular trading on Friday, 27 May 2022, or when the announcement is released to the market.
The new announcement seems to be an important one that’s why the company has decided to go for a trading halt. The new announcement is expected to be made in the next week.
Why has the SYA stock gained in the past Twelve Months?
The main reason for the SYA stock gain in the previous 12 months was its diversified lithium exploration and development portfolio. The company has different lithium exploration sites such as Moblan Lithium Project in Quebec, Lac Albert Project at the west of Moblan Lithium Project, Authier Lithium Project, a hard rock spodumene lithium deposit, and Tansim Lithium Project. All of these lithium exploration and development sites are located alone in Quebec.
Western Australian Projects, Pilbara Exploration, Sayona Lithium Tenure, and the company has a stake in Pilbara Gold Exploration and East Kimberley Graphite Project to identify coarse flake graphite mineralization of its other projects in Australia.
The company is much diversified and is expected to generate considerable revenues when the demand for lithium increases due to the increase in the production of Electric Vehicles.
Over the past twelve months, lithium prices have increased significantly due to the increase in the demand for lithium-ion batteries used in electric cars. According to the stats, lithium prices have increased by more than 433% in the previous twelve months.
SYA is a promising ASX-listed lithium stock and is showing a positive trend in the market. The company has a diversified portfolio and has increased its revenue by more than 32,000% year-over-year from $336K to $108.5 million in the first half of 2022. The Group’s prospects are bright. The Group’s strategic emphasis is on restarting spodumene concentrate production at NAL in the first quarter of 2023 and evaluating downstream processing prospects at NAL. The company is also trying to expand its stake in the Moblan project to create a Northern Quebec lithium site.