Yes, I think if production costs per tonne are looking reasonable at NAL as ramp up progresses come the September quarterly report (end Oct) then we should have a blinder come the December quarterly report (due end Jan). That is when the true performance and revenue of NAL will start to show imo.
These current prices are madness imo. Just as a comparison, Azure Minerals is now worth more than we are in terms of market cap. The don't even have a maiden JORC, they are literally drilling (admittedly what looking like a fantastic resource with Andover), and they own 60%, just like us with Moblan. They are aiming for 100mt plus resource. WE ALREADY HAVE OVER 100mt resource! Drilled, proven, JORC compliant, which is about to increase again dramatically...
The difference is we are in actual production, have a billion dollar mine and concentrator already producing and a project of the same potential scale and ownership % as Andover in Moblan, however that already has a MRE with 8 rigs drilling now to massively increase it, oh, and a DFS in November!! Oh, and we've got quarter of a billion bucks in the bank.
It's just ludicrous in comparison but yet here we are...
Clear direction, concise strategy, direct transparent communications and marketing from the board. That's the only thing they have over us... clearly that counts for a lot.
How is a producer valued less than an explorer in this comparison. Both of are in comparable tier 1 jurisdictions. It boggles the mind.
Bit of a joke at this point to be honest but ho hum, the market will start to realise and re-rate Sayona come the next 2 quarterlies imo. We need to pull our finger out and get this outfit humming from a corporate level, we have first mover advantage, we need to make the most of it:
- We need direction and clear communication regarding the downstream plans. Then get it done; make the FID and commit to NAL downstream ASAP with a clear structure for financing and timeline to production.
- We need solid drill results from Moblan and NAL communicated with force and dazzle to the market. Shout if from the bloody rooftops like all the others do. It's a world class resource! Compare it to the piddley explorers who have nothing but hopes and dreams and are years from a DFS.
- We need solid numbers from NAL. Give clear concise financials. Give guidance, we're a producer now, act like it.
- We need to firmly re-negotiate the Piedmont offtake for the benefit of the joint venture. It can absolutely be done, it's business! They will have no revenue either if NAL were to struggle for whatever reason. Up the ceiling in line with the changes the world and industry has seen imo. I want PLL to make profit, they're our partner and we wouldn't have NAL without them, but this needs to be reassessed for the benefit of both parties as a JV.
- We need Government funding; it's long overdue that the Quebec and Canadian government put their money where their month is regarding Sayona. We've been diluted heavily to raise the funds to get to where we are, now they can help too imo.
- We need a strategic major downstream partner who will put forward substantial funding for capex to help develop Moblan. (The JV profits and government grants can fund NAL carbonate imo - keep them separate and give clear delineation of SYAQ (subsidiary company 75% owned by Sayona) and SYA/Sayona Nord under full ownership.
- Board reshuffle, minimum 5 permanent, not part time, board members. No free loaders. We need to change, we need to grow up and act like an ASX 50 company because that is what we can be.
- We need a great CEO, one with charisma and flair and solid corporate experience who's not afraid to negotiate hard and to get in front of the cameras either. They need to be the face of lithium in Canada not just Sayona; take charge, shout about it; interviews, social media, get the share price working for the shareholders, that is their primary goal as a publicly listed company.
- Give us a clear update on Authier and when this will commence development.
- Give us a clear update on Tansim and what the intention is with this project. Clearly it's not a priority currently but what is the intention with this property moving forward?
- Give us a clear update on what we have in WA and what the priorities and timelines are there, if any.
- In time, after a couple of quarters of reported revenue say, I feel a 10:1 (for example) share consolidation (reverse stock split) would be a good way forwards to reduce some of the huge liquidity we have, this should give us a more stable share price that can grow organically and be more in line with ASX 200 norms.
Just some thoughts, I think we have achieved so much in the last 3 years but I do think now it is time to consolidate, give a clear direction and grow into something truly impressive and that I feel, with the right leadership, is entirely possible. The current market cap for what we have is down right daft imo in comparison to peers and lesser (yet higher valued) explorers.
Maybe just Friday afternoon frustrations seeing us close at 10.5c, sorry for the rant, but I think with solid numbers over the coming months from NAL and with these steps (which is easy to say armchair CEOing on a forum and very hard to implement successfully in a real world multi billion dollar company environment!) we will fly personally.
We've got something very good, we just need to clean it up a little and present it professionally and with clarity to the world.
SYA Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
(20min delay)