Sayona Mining Limited has reported record lithium production and improved operational efficiency at its North American Lithium operation, positioning itself strongly ahead of a transformative merger with Piedmont Lithium.
- Record quarterly spodumene production of 58,533 dry metric tonnes, up 35% QoQ
- Mill utilisation reached a new high of 93%, lithium recovery improved to 73%
- Revenue rose to $71 million despite an 8% drop in average realised selling prices
- Unit operating costs fell 10% quarter-on-quarter, reflecting operational efficiencies
- Merger with Piedmont Lithium targeted for completion in August 2025
Operational Breakthroughs at North American Lithium
Sayona Mining Limited has delivered a standout quarter at its North American Lithium (NAL) operation in Québec, Canada, with production hitting a record 58,533 dry metric tonnes of spodumene concentrate. This represents a 35% increase from the previous quarter, driven by a combination of higher ore mined, improved mill utilisation, and enhanced lithium recovery rates. The mill operated at a record 93% utilisation, while lithium recovery climbed to 73%, underscoring the effectiveness of ongoing process improvements and disciplined site execution.
These operational gains have not only boosted output but also improved cost efficiency. Unit operating costs on a free-on-board basis decreased by 10% quarter-on-quarter to $1,232 per tonne sold, with the unit cost of production falling to US$737 per tonne. This cost reduction, alongside increased throughput, highlights the operating leverage Sayona is achieving as it scales production.
Financial Performance and Market Positioning
Despite an 8% decline in average realised selling prices to $1,054 per dry metric tonne, Sayona’s revenue for the quarter surged to $71 million, a 129% increase from the prior quarter. This was largely due to a strategic skewing of sales volumes towards the June quarter to capitalise on stronger forward pricing compared to spot market rates, which fell by 15-20% during the period. The company’s forward sales strategy proved effective, with realised prices outperforming lithium price benchmarks.
However, the quarter also saw a $12 million operational loss at NAL, influenced by lower prices and increased sales volumes, partially offset by joint venture partner contributions and disciplined spending. The company’s cash balance decreased to $72.3 million, reflecting operational losses, sustaining capital expenditure, and merger-related costs.
Strategic Merger and Growth Outlook
Sayona is on track to complete its transformational merger with Piedmont Lithium by mid-August 2025, pending shareholder approvals scheduled for late July. The merger will create Elevra Lithium, a leading North American lithium producer with a balanced leadership team and a stronger platform for growth. The combined entity is expected to benefit from enhanced scale, operational synergies, and improved market positioning in a competitive lithium market.
Exploration activities have transitioned from drilling to evaluation, with updated mineral resource estimates for NAL and Moblan projects anticipated by the end of August 2025. In Western Australia, Sayona continues to advance its lithium and gold prospects, including promising rubidium mineralisation at Mt Edon and ongoing geochemical surveys in the Pilbara region.
Safety and Environmental Progress
Safety performance improved further during the quarter, with no lost time injuries recorded in May or June 2025, marking the best safety record since September 2024. Environmental and permitting studies continue to support potential expansion plans at NAL, reflecting Sayona’s commitment to sustainable operations and community engagement.
Bottom Line?
With record production and cost efficiencies achieved, Sayona Mining is poised to leverage its merger with Piedmont Lithium to capture growth in the evolving lithium market.
Questions in the middle?
- How will the merger with Piedmont Lithium impact Sayona’s operational integration and cost structure?
- What are the implications of recent lithium price volatility on Sayona’s forward sales strategy and profitability?
- When will updated mineral resource estimates be released, and how might they influence Sayona’s valuation?