One stock that wasn’t dragged into the sea of red on the ASX200 today – down 1.3% in afternoon trading - was Sayona Mining (ASX: SYA). The stock’s share price was up 13% on revelations that following the consummation of its merger with Piedmont Lithium (ASX:PLL), the entity will trade under the name Elevra Lithium.
Today’s rise provided some welcome relief for shareholders who have watched the share price tumble 33% year to date.
Underscoring the 1H FY25 loss of $37 million – up from a loss of $9 million in 1H FY24, was the underlying weakness in unit operating costs per tonne of spodumene, down 35% to $1,060 per dry metric tonne.
However, the miner expects full-year spodumene concentrate sales of 200,000 dmt to 230,000 dmt, which implies 85,000 dmt to 115,000 dmt in the second half.
Costs are forecast to be in the range of $1,150 to $1,300 per DMt sold.
Once the transaction is completed - by mid-2025 - both companies expect Sayona's production capabilities, combined with Piedmont's market presence in North America, to reap significant synergies.
Post the transaction, ownership will be split 50/50 between Sayona and Piedmont shareholders prior to the conditional placement.
The merged entity will be domiciled in Australia – with an ASX primary listing and a NASDAQ secondary listing.
Acquired on 2021, Sayona’s flagship, the North American Lithium (NAL) is operated in a joint venture 75/25% partnership with Piedmont.
In August 2023, Sayona announced the first shipment of NAL spodumene (lithium) concentrate to the international lithium market, marking a major milestone and paving the way for the first revenues within two years of NAL’s acquisition.
NAL has produced approximately 140,000 tonnes of spodumene concentrate since March 2023.
The six months also saw Sayona complete $13 million in capital projects at NAL, including phase 2 of the Tailings Storage Facility capacity upgrade and other site enhancements.
Elevra Lithium's board will consist of four from Piedmont's current board - including Dawne Hickton, the Chair designate of Elevra Lithium - and four from Sayona's board - including Lucas Dow, who will become Elevra's managing director and CEO.
Sayona has a market cap of $207 million; with the share price down 54% in one year.
Piedmont has a market share of $59 million, with the share price also down 54% in one year.
Piedmont’s share price was up over 3% an hour out of the close today.
