Sayona Mining delivered record lithium concentrate production and sales in FY25, driving revenue to $223 million despite a 16% drop in selling prices. The company also recorded a significant $271 million impairment on its North American Lithium assets amid weaker market conditions.
- Record FY25 lithium concentrate production and sales volumes
- $223 million revenue driven by 32% sales volume growth
- $271 million impairment on North American Lithium assets
- Underlying EBITDA loss of $67 million despite operational cost reductions
- Merger with Piedmont Lithium approved with $69 million capital raise planned
Operational Milestones
Sayona Mining Limited reported a strong operational performance in FY25, achieving record lithium concentrate production of 205,000 dry metric tonnes, a 31% increase over the prior year. Sales volumes also hit a record 209,000 tonnes, up 32%, supported by improved mill utilisation reaching 93% and lithium recoveries exceeding 73% in the June quarter. These operational gains were accompanied by a 27% reduction in unit operating costs produced and a 9% decrease in unit costs sold, reflecting efficiencies and cost discipline.
Financial Performance and Market Challenges
Despite the volume growth, Sayona faced headwinds from a 16% decline in average realised selling prices due to softer lithium market conditions. Revenue rose 11% to $223 million, but the company recorded an underlying EBITDA loss of $67 million. This loss was influenced by the flush out of high-cost inventory from the North American Lithium (NAL) ramp-up phase and a significant $271 million impairment charge on NAL assets, driven by lower long-term lithium price forecasts and constraints from an onerous offtake agreement with Piedmont Lithium.
Strategic Corporate Developments
In a major corporate move, Sayona’s merger with Piedmont Lithium has been approved by shareholders of both companies. The merger is expected to eliminate the restrictive offtake agreement impacting NAL’s asset valuation. Post-merger, a new board will be constituted, and a $69 million capital raise at $0.032 per share is planned to support the combined entity’s growth. Sayona’s cash balance stood at $72 million as of June 30, 2025, down 20% from the previous year, with capital expenditure reduced by 56% focusing on sustaining projects and exploration activities, particularly in Quebec.
Outlook and Market Positioning
Sayona’s operational improvements and strategic merger position it well to navigate the current lithium market volatility. The company’s focus on cost control, production optimisation, and downstream integration studies signals an intent to enhance value beyond raw concentrate sales. However, the sizeable impairment and ongoing market uncertainties underscore the challenges ahead. The merger with Piedmont could be a pivotal step in unlocking synergies and improving financial resilience.
Bottom Line?
Sayona’s record production and strategic merger set the stage for a critical next phase amid lithium market headwinds.
Questions in the middle?
- How will the Piedmont merger reshape Sayona’s operational and financial outlook?
- What are the implications of the $271 million impairment for future asset valuations?
- Can Sayona sustain cost reductions and production growth in a volatile lithium market?