Sayona Mining reports strong operational performance and financial results for March 2024 quarter

Sayona Mining Limited (ASX: $SYA) achieved new daily production records with a significant increase in ore mined at NAL operation from mining areas with lower strip ratios and commencement of Phase 3 mining areas with higher ore tonnes than expected. The company reported record monthly and quarterly spodumene concentrate production, with the quarter up 18% to 40,439 dmt at an average grade of 5.4% Li20. The adverse weather and tailings line blockages reduced process plant utilisation to 73%, a decrease of 2% compared to the prior quarter. Lithium recovery for the quarter was 67%, an increase of 5% compared to the prior quarter. Sayona also achieved major capital projects completion at NAL, including the Crushed Ore Dome and Tailings Storage Facility 1. The company finalised the Definitive Feasibility Study (DFS) for the Moblan Lithium Project, confirming a post-tax net present value (NPV) of C$2.2 billion.

Executive Director & Interim CEO, Mr James Brown, comments on the operational performance and future outlook

It was another quarter of strong operational performance for Sayona, with concentrate production at NAL increasing 18% Quarter on Quarter (QoQ) to 40,439 dmt. Concentrate sales were up 142% Quarter on Quarter which included some catch up from the December 2023 Quarter and the commencement of rail shipments to Tesla. Following the completion of an operational review that confirmed ongoing production ramp-up at NAL, the team continues to optimize mining and production processes, with significant improvements in ore production and future ore availability. The Crushed Ore Dome is now complete and commissioning commenced in April. The dome is poised to significantly boost operational reliability during winter, providing an additional 6,000 tonnes storage capacity of crushed ore between the crusher and the mill. The Moblan Definitive Feasibility Study confirmed a net present value for the project of C$2.2 billion. The challenging market conditions of recent months highlight the importance of developing Tier 1 lithium projects that are strategically located near existing transport corridors with end markets and that have the potential to deliver high grade lithium concentrate at competitive operating costs. Exploration activity continued during the March Quarter, with drilling results progressively becoming available at both NAL and Moblan. The results are being compiled for ASX release and may provide the potential for further increases to the existing lithium resources at both projects. Sayona has an enviable portfolio of projects and exploration tenements that will generate material value for shareholders and ensure the Company is well positioned in the growing North American lithium market. Amid challenging market conditions, Sayona remains focused on delivering results for shareholders and ensuring the Company is well positioned for the eventual upturn.

Outlook and future plans for Sayona Mining

Sayona Mining achieved new daily production records and reported a strong operational performance for the March 2024 quarter. The company completed major capital projects at NAL, including the Crushed Ore Dome and Tailings Storage Facility 1, and finalized the Definitive Feasibility Study (DFS) for the Moblan Lithium Project, confirming a post-tax net present value (NPV) of C$2.2 billion. Exploration activity continued during the quarter, with drilling results progressively becoming available at both NAL and Moblan. The company remains focused on delivering results for shareholders and ensuring it is well positioned in the growing North American lithium market. Sayona's enviable portfolio of projects and exploration tenements is expected to generate material value for shareholders and ensure the Company's strong position for the eventual upturn in the market.