- Ore mined of
233,699 wet metric tonnes (wmt) was 33% lower than the previous
quarter as high ROM pad inventories were utilised while in-pit
inventory increased by 44%.
- Process plant
utilisation reached a new high of 83% up from 73% in the prior
quarter.
- Lithium recovery
for the quarter was also a new high of 68%, up from 67% in the
prior quarter.
- Record
production up nearly 23% to a record 49,660 tonnes of spodumene
concentrate at an average grade of 5.3% for the quarter as a result
of excellent mill utilisation and recovery.
- Daily production
reached a new record of 919 tonnes in June and monthly production
reached 19,314 tonnes in May
- Unit operating
costs for NAL decreased 2% Quarter on Quarter to A$1,506/dmt
(US$995/dmt).
- Two marine
cargoes of concentrate were sold by NAL during the quarter. A
scheduled third cargo at the end of the June was delayed due to
weather and departed port on 1 July. Consequently, shipments in the
September quarter are now expected to be a minimum of 50,000 dry
metric tonnes (dmt) and up to 65,000 dmt depending upon the timing
of a shipment scheduled for late September.
- Total
concentrate sold during the quarter was 27,729 dry metric tonnes.
The average realised selling price (FOB) decreased by 11% to
A$885/dmt (US$604/dmt) compared to the previous quarter.
- NAL revenue was
A$25 million for the quarter, which was impacted by unfavourable
quotational period adjustments and a delayed shipment.
- Major capital
projects were completed at NAL, including the Crushed Ore Dome and
refeed facility which was reflected in lower capital spend in this
quarter and going forward.
Western Australia,
Australia
- An orientation
ground gravity survey was completed to assist in targeting the
pegmatite system and potential lithium rich zones at depth. Reverse
circulation (RC) drilling commenced in late May with 21 holes for
3,538 metres now complete. Assays are pending.
Corporate
- Mr Lucas Dow was
appointed as Managing Director and CEO on 3 July. Mr Dow is a
highly experienced mining executive who has a strong operational
focus.
- Mr James Brown
will serve as an Executive Director until 31 January 2025 after
which he will continue in a non-Executive Director role.
- The balance of
cash and cash equivalents at the end of the quarter was $90.6
million, an $8.3 million decrease over the equivalent balance of
$98.9 million at 31 March 2024
Management Commentary
It was a quarter of record operational performance for Sayona,
with concentrate production at NAL increasing 23% Quarter on
Quarter (QoQ) to 49,660 dmt. Mill utilisation has improved
materially over the prior quarter to 83%.
The team at NAL continues to optimise mining and production
processes, with significant improvements in concentrate production
over the quarter. This was driven by excellent mill utilisation and
recovery rates. Mill utilisation increased from 73% to 83% as
weather related outages abated with the onset of summer and with
the availability of ore feedstock from the now fully operational
Crushed Ore Dome.
Mill utilisation over the month of June reached a record 91%
while the quarter average was negatively impacted by a planned
shutdown in April related to the tie-in of the Crushed Ore
Dome.
Recovery rates continued to improve during the quarter to 68%
reflecting slightly above forecast ore grade and most
significantly, excellent operational performance.
Revenue was lower during the quarter, impacted by the delay of a
scheduled shipment in June as well as lower average realised
selling prices with a decline in lithium prices towards the end of
the quarter. Unit operating costs improved benefitting from
increased mill output combined with lower mining expenditure
through optimisation of activities and ROM pad inventories.
Production continued to improve throughout the
quarter driven by higher mill utilisation and excellent recovery
rates.
The Crushed Ore Dome is now complete and fully commissioned. The
dome will significantly boost operational reliability during
winter, providing an additional 6,000 tonnes storage capacity of
crushed ore between the crusher and the mill. The additional
storage capacity of crushed ore enables approximately 1.5 days of
continuous mill operation.
Concentrate sales during the quarter included two marine
shipments of 27,729 tonnes at 5.4% Li2O. A third shipment was
scheduled for the end of June, however loading was delayed due to
adverse weather conditions and the ship departed port on 1 July
2024 with approximately 14,000 dmt. Larger shipments of up to
30,000 tonnes are planned for the September quarter which is
expected to result in higher average realised selling prices.
Excellent drilling results were released for both NAL and Moblan
during the quarter. The results demonstrate the extension of
mineralisation beyond current Mineral Resource Estimates (MRE) at
both projects and provide the potential for further increases to
the existing MREs. Exploration and resource definition drilling
will continue at both projects throughout 2024.
Exploration at the Tabba Tabba project focussed on strike
extensions immediately south of recent discoveries by Wildcat
Resources at the Leia and Luke pegmatite systems.
A ground gravity geophysical survey was conducted in April which
helped inform the location of holes for a RC drilling program which
commenced late May. Drilling focussed in the northern area,
immediately south of Wildcat Resources tenements, and at the
Roadside prospect, approximately 4.5km to the south and along
strike. A programme of 21 holes for 3,538m was completed with assay
results now pending.
Sayona appointed Mr Lucas Dow as Managing Director and CEO on 3
July. Mr Dow is a highly experienced mining executive who has a
strong operational focus. Mr James Brown will serve as an Executive
Director until 31 January 2025 to enable an effective handover,
after which he will continue in a non-Executive Director role.
Sayona boasts an impressive portfolio of projects and
exploration tenements poised to create significant value for
shareholders. While market conditions remain challenging, Sayona
remains focused on improving operational results and ensuring the
Company is well positioned for the eventual upturn.
Mr James BrownInterim CEO
Mr Lucas DowManaging Director
and CEO
Announcement authorised for release by Mr Lucas Dow, Managing
Director and CEO of Sayona Mining Limited.
For more information, please contact:
Andrew BarberDirector of Investor
Relations
Email: ir@sayonamining.com.auPhone: +61 7 3369
7058Information
The following information applies to this
report:
- All references to
dollars and cents are Australian currency, unless otherwise
stated.
- Numbers presented
may not add up precisely to the totals provided due to
rounding.
The following abbreviations may have been used throughout this
report: cost, insurance and freight (CIF); dry metric tonne (dmt);
earnings before interest and tax (EBIT); earnings before interest,
tax, depreciation and amortisation (EBITDA); free on board (FOB);
life of mine (LOM); lithium carbonate (Li2CO3); lithium hydroxide
(LiOH); lithium oxide (Li2O); net present value (NPV); run of mine
(ROM); thousand tonnes (kt); tonnes (t); and wet metric tonne
(wmt).
Forward-Looking Statements
This report may contain certain forward-looking statements. Such
statements are only predictions, based on certain assumptions and
involve known and unknown risks, uncertainties and other factors,
many of which are beyond Sayona Mining Limited’s control. Actual
events or results may differ materially from the events or results
expected or implied in any forward-looking statement. The inclusion
of such statements should not be regarded as a representation,
warranty or prediction with respect to the accuracy of the
underlying assumptions or that any forward-looking statements will
be or are likely to be fulfilled.
Sayona Mining Limited undertakes no obligation to update any
forward-looking statement or other statement to reflect events or
circumstances after the date of this report (subject to securities
exchange disclosure requirements).
The information in this report does not take into account the
objectives, financial situation or particular needs of any person.
Nothing contained in this report constitutes investment, legal, tax
or other advice.
About Sayona Mining
Sayona Mining Limited is a North American lithium producer (ASX:
SYA; OTCQB: SYAXF) with projects in Québec, Canada and Western
Australia, Australia.
In Québec, Sayona’s assets include North American Lithium, the
Authier Lithium Project and its Tansim Lithium Project, which are
supported by a strategic partnership with American lithium
developer Piedmont Lithium Inc. Sayona also holds a 60% interest in
the Moblan Lithium Project in northern Québec.
In Western Australia, Sayona holds a large tenement portfolio in
the Pilbara region prospective for gold and lithium. The Company is
exploring for Hemi‐style gold targets in the world‐class Pilbara
region, while a portion of its key lithium projects are subject to
a joint venture with Morella Corporation Limited.
For more information, please visit us at sayonamining.com.au
The Company confirms that it is not aware of any new information
or data that materially affects the information included in the
original market announcement and all material assumptions and
technical parameters continue to apply and have not materially
changed. The Company confirms that the form and context in which
the Competent Person’s findings are presented have not been
materially modified from the original market announcements.