Sayona Mining (ASX: SYA; OTCQB: SYAXF) is conducting an operations review of its North American Lithium (NAL) operation in Quebec. The project is a joint venture of Sayona (75%) and Piedmont Lithium (25%).
The goal is to optimize the cost structure to manage cash flow and enhance financial sustainability during a bear market for lithium. According to the Australian Department of Industry, Science and Resources, the spot price will fall to US$2,200 per tonne in 2025 from an average of US $3,840 per tonne last year. The figures come from the department’s quarterly report issued in December 2023.
“This review of our Québec operations is focusing on reducing our cost base, enhancing productivity and improving Sayona’s ability to continue to produce lithium throughout the market cycle,” said James Brown, Sayona’s interim CEO.
“As the only operating hard rock lithium mine in North America, NAL is well positioned to remain a strategic source of lithium for the North American battery and EV market. While current market conditions are challenging, we are confident that the long-term outlook for lithium remains positive as the energy transition gains momentum and the shift to an electrified world continues,” he added.
The NAL project, operating as Sayona Quebec, only began shipping lithium concentrate in August 2023.
As part of the review, Guy Belleau formerly CEO of Sayona Quebec has left the company. COO Sylvain Collard will assume direct management of NAL. An additional 14 staff in Quebec have been made redundant.
“We are confident we now have the right team in place in Quebec to maintain and enhance production, while enabling enhanced productivity to ensure our continued growth as a leading force in North America’s electrification,” Brown added.
Learn more on www.Sayona.ca.
October 31, 2024
October 31, 2024
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