Ann: Becoming a substantial holder, page-33

What's been happening with Sayona Mining Ltd?

Sayona Mining Ltd (ASX: SYA) shares have had a year to forget. One year ago, shares in the S&P/ASX 300 Index (ASX: XKO) lithium stock were trading for 23 cents apiece. Which was already well down from the highs of 36 cents a share in April 2022, when lithium prices were storming towards all-time-highs.

Yesterday, Sayona shares closed at 4.6 cents, putting the stock down 80% over 12 months.

Despite a stabilising lithium price and maiden production in H1 FY 2024, Sayona Mining shares have slumped 37% in 2024 to date.

With maiden half-year revenue of $118 million for the first half, the miner closed out 2024 with a cash balance of $158 million as at 31 December.

But it's been burning through cash since then.

At its quarterly update, released on 26 April, the company reported achieving an 18% increase in production from the prior quarter to 40,439 dry metric tonnes (dmt).

Costs also increased, however, with unit operating costs up 10% quarter on quarter to $1,536 per dmt.

Rather alarmingly for Sayona Mining shares, while the lithium miner's concentrate sales volumes increased by 142% from the prior quarter to 58,055 per dmt, it received an average realised price of $999 per dmt.

Or more than $500 per dmt less than it cost to produce.

Management reported cash holdings of $99 million as at 31 March, down $59 million over the three months.