Sayona Mining Boosts Lithium Production 31% Despite Price-Driven $382M Impairment
Sayona Mining delivered record lithium production and sales in FY25 but reported a $382 million loss due to asset impairments amid falling lithium prices. The company is poised for transformation with its imminent merger with Piedmont Lithium.
- 31% increase in North American Lithium concentrate production
- 32% growth in spodumene concentrate sales volumes
- $271 million impairment driven by lower long-term lithium price forecasts
- Merger with Piedmont Lithium to form Elevra Lithium Limited approved
- Exploration boosts reserves and resources at NAL and Moblan projects
Operational Breakthroughs Amid Challenging Market
Sayona Mining Limited has reported a standout operational year for FY25, with its North American Lithium (NAL) operations achieving record production and sales volumes. Concentrate production surged 31% year-on-year to 204,858 dry metric tonnes, while sales volumes rose 32%, reflecting strong demand from customers in Asia and the United States.
Improvements in lithium recovery rates, which averaged 69% for the year and peaked at 73% in the June quarter, alongside enhanced mill utilisation reaching 93%, underscore the company’s operational discipline and process optimisation efforts. These gains were supported by $20 million in capital projects, including tailings storage upgrades and site enhancements.
Financial Strains Despite Revenue Growth
Despite these operational successes, Sayona reported a consolidated loss after tax of $382 million, a sharp increase from the prior year’s $119 million loss. This was largely driven by a $271 million non-cash impairment of NAL assets, reflecting a significant downward revision in long-term lithium price forecasts. The company’s average realised selling price fell 16% to A$1,069 per dry metric tonne, offsetting gains from improved freight logistics and forward sales agreements.
Underlying EBITDA remained negative at $67 million, impacted by the sale of high-cost inventory from the ramp-up phase, though operating costs per tonne sold decreased by 9%, demonstrating effective cost control. The group’s net cash outflow from operations narrowed substantially to $15 million, aided by customer prepayments and disciplined expenditure.
Exploration Success and Strategic Growth
Exploration programs at NAL and the Moblan Lithium Project in Québec delivered significant resource upgrades, with Moblan’s resource increasing 30% to 121 million tonnes at 1.19% lithium oxide and reserves up 39%. NAL reserves more than doubled to 48.6 million tonnes, providing a solid foundation for potential brownfield expansion.
In Western Australia, Sayona continued early-stage exploration across lithium and gold projects, including the Tabba Tabba and Morella joint ventures, maintaining exposure to one of the world’s most prospective mining regions.
Merger to Create North American Lithium Powerhouse
The company’s strategic highlight is its imminent merger with Piedmont Lithium, approved by shareholders and expected to complete on 30 August 2025. The combined entity, Elevra Lithium Limited, will command a premier position in North America’s lithium sector, leveraging complementary assets, enhanced market reach, and operational synergies.
Post-merger, Sayona plans a conditional placement to raise approximately $69 million and a share consolidation, positioning Elevra Lithium for growth amid rising global lithium demand driven by the clean energy transition.
Management remains focused on completing the merger, advancing NAL expansion studies, and delivering FY26 guidance once the new board is in place.
Bottom Line?
Sayona’s record operational strides contrast with financial headwinds, setting the stage for Elevra Lithium’s next chapter in a volatile lithium market.
Questions in the middle?
- How will the merger with Piedmont Lithium reshape operational efficiencies and cost structures?
- What lithium price assumptions will Elevra Lithium adopt for future asset valuations?
- Can exploration gains at NAL and Moblan translate into expanded production and longer mine life?
