Sayona, Piedmont mark improvements at NAL as lithium price slides further

Six months after Sayona Mining (ASX: SYA) and Piedmont Lithium (NASDAQ: PLL; ASX: PLL) announced a cost cutting review at their 75%-25% owned North American Lithium (NAL) mine in Quebec, the operation isn’t yet on its feet.  

In the second quarter, NAL produced 49,660 dry metric tonnes of 5.3% concentrate — 23% more than the previous quarter on better mill utilization (up to a new high of 83% from 73% in the first quarter) and recoveries. 

But it shipped less than half the 58,100 tonnes it managed in the first quarter. Only 27,700 tonnes of concentrate were sent to customers after weather delays pushed a third shipment for the period into the next quarter. 

Unit operating costs decreased by 2% from the previous quarter to US$995 per tonne – still far above the realized selling price of US$604 million. That price was down 11% from the previous quarter. 

Overall revenues were also down 58% to A$25 million ($22.6 million), impacted by both the delayed shipment and the slide in prices.  

A new crushed ore dome with a capacity of 6,000 tonnes is expected to further boost production levels and utilization rates, especially during the winter. 

The operation began shipping spodumene concentrate in August 2023. However, the largest spodumene mine in North America contended with a dramatic 80% drop in lithium prices last year. 

Sayona also holds the advanced Moblan project nearby.

‘Strategic asset’

Piedmont is positioning itself to become a leading low-cost producer of lithium hydroxide, capitalizing on the growing North American electric vehicle supply chain. It has a development project in the United States and owns a 22.5% stake in Atlantic Lithium’s (ASX: A11; US-OTC: ALLIF) Ewoyaa project, now under construction, with an option to earn 50%. 

“As one of only a handful of active spodumene mines globally, NAL is a highly strategic asset with excellent operational performance as the ramp-up to steady-state production continues,” Piedmont Lithium’s president and CEO Keith Phillips said in a release.

“With ongoing quarterly production records and the recent high-grade drill results of the 2023-2024 drill campaign, NAL has demonstrated significant progress and future potential. “As we enter the second half of the year, we look forward to increasing our shipments to contract customers.” 

Piedmont plans to ship about 96,500 tonnes of spodumene concentrate in the second half of 2024, targeting a total of 126,000 tonnes for the year. 

The company traded at 16¢ a share at press time for a market cap of A$315.5 million ($285.6 million). 

With a market cap of A$329.7 million ($298.5 million), Sayona Mining traded at A3.1¢ in a 52-week range of A3-17¢.