Not sure if you guys have seen this report or not, I like Sayona...

Not sure if you guys have seen this report or not, I like Sayona and believe in the company Report created 30 July

Sayona Mining Limited (ASX: SYA): Cemented its plan to commence North American spodumene (lithium) production


Company Overview
Sayona Mining Limited (“SYA” or the “Company” is an emerging lithium producer, with projects in Québec, Canada, and Western Australia. In Québec, Sayona's assets comprise North American Lithium(NAL) together with the Authier Lithium Project and its emerging Tansim Lithium Project, supported by a strategic partnership with American lithium developer Piedmont Lithium Inc. (Nasdaq: PLL; ASX: PLL). Sayona together with strategic partner Piedmont Lithium Inc. (Nasdaq: PLL; ASX: PLL) acquired the North American Lithium last year in Aug 2021, intending to integrate with its nearby Authier Lithium Project as well as its emerging Tansim Lithium Project to create a world-scale Abitibi lithium hub. NAL comprises 19 contiguous claims covering approximately 582 ha, situated in La Corne Township in Québec's Abitibi-Témiscamingue region. The project lies 60 km north of the city of Val d'Or, a major mining service center, and in proximity to Sayona's Authier Lithium Project (Authier). Sayona's Authier Lithium Project in Québec, Canada is a hard rock spodumene lithium deposit. It has been scheduled for development as an open-cut mine, initially producing a 6% Li2O spodumene concentrate. Together, the two projects play a key role in the Company’s planned multi‐project Abitibi lithium hub. The Group is targeting the restart of spodumene concentrate production at NAL from the first quarter of 2023. In addition, an evaluation of downstream processing at NAL is progressing, as per the NAL acquisition agreement. The Company also holds a 60% stake in the Moblan Lithium Project in northern Québec. In Western Australia, the Company holds a large tenement portfolio in the Pilbara region prospective for gold and lithium. Sayona is exploring Hemi‐style gold targets in the world‐class Pilbara region, while its lithium projects are subject to an earn‐in agreement with Morella Corporation (ASX: 1MC). The Group’s primary focus over the next 12 months is the restart of spodumene concentrate production from NAL in Q1 2023, together with an evaluation of downstream processing potential at NAL is progressing. The company has recently released a Pre-feasibility Study On its flagship North American Lithium project and is currently undergoing a definitive feasibility study (DFS) for the profitable production of spodumene concentrate at NAL, combined with production from nearby Authier.

Investment Rationale
The positive Pre‐feasibility Study (PFS) at the NAL project confirmed technical and financial viability over the 27‐year life of mine
On 23rd May, Sayona announced a positive pre‐feasibility study (PFS) for its flagship North American Lithium (NAL) Project in Québec, Canada, confirming the NAL operation’s technical and financial viability. The PFS will allow Sayona to launch production ahead of other North American projects, generating sustainable cash flows and putting the Company on a fast track to go downstream into value‐added lithium hydroxide or carbonate production. Québec is rapidly emerging as a leader in the battery sector, benefitting from its clean and sustainable hydropower, world‐class infrastructure, and proximity to the market. Key outcomes of the PFS include an estimated pre‐tax NPV of C$952 million (A$1.05 billion as of 23 May 2022) (8% discount rate), a pre‐tax IRR of 140%, and a capital payback period within two years. The life of mine has been extended to 27 years, based on an estimated JORC Proved and Probable Ore Reserves of 29.2 Mt @ 0.96% Li2O (Proved Reserve 1.2Mt @ 0.92% Li2O and Probable Reserve 28.0Mt @ 0.96% Li2O). The NAL PFS is based on an annual ore feed of circa 1.4 Mtpa to the process plant to deliver average annual output (steady state) of 168,000 tonnes annually of spodumene concentrate containing 6% Li2O. The current LOM plan is based on a multi‐stockpiles strategy (low grade, high grade, and Authier) to enable optimal blending of ore. A modest CAPEX of approximately A$100M for NAL restarts, with upgrades to improve operational efficiency, grade, quality, and recovery; long‐lead equipment already ordered to facilitate Q1 2023 restart. The PFS has confirmed the potential for the Abitibi lithium hub, adding to the emerging northern hub and facilitating downstream processing as the company bolsters its leading position in the North American lithium industry. The PFS is the key part of Sayona’s Abitibi lithium hub comprising NAL and the nearby Authier Lithium Project. At NAL, the company’s overriding development objective is for the restart of production, with the benefit of supplementary ore feed from Sayona Québec's (SYQ) wholly owned Authier Lithium Project, located just 30 km from the NAL site. Initially, NAL will produce a lithium concentrate for general market conversion, however, NAL will become a primary feed source for SYQ's integrated downstream refined lithium products.

• Positive Pre‐feasibility Study (PFS) confirmed the value of the North American Lithium (NAL) operation in Québec, Canada confirming technical and financial viability over the 27‐year life of mine
• Pre‐tax net present value (NPV) (8% discount) estimated at approx. A$1 billion, with a pre‐tax internal rate of return (IRR) of 140% and capital payback within two years
• Modest CAPEX for NAL restart of approx. A$100M, with upgrades to improve operational efficiency, grade, quality, and recovery; long‐lead equipment already ordered to facilitate Q1 2023 restart
• Results from the PFS confirmed the potential for the Abitibi lithium hub, adding to the emerging northern hub and facilitating downstream processing as Company bolsters its leading position in the North American lithium industry.

The successful $190m institutional placement to fund NAL restart and broader development initiatives
Sayona has recently received significant financial support for its growth strategy, with the recently undertaken successful single‐tranche placement to global institutional, professional, and sophisticated investors of A$190 million ("Placement"). On 27 May, Sayona received firm commitments to raise A$190 million (before costs) through the issue of 1,054,406,346 new fully paid ordinary shares ("New Shares") at an issue price of A$0.18 per New Share. Proceeds from the Placement will be primarily used to fund the restart of spodumene concentrate production at Sayona's North American Lithium ("NAL") operation in Québec, Canada (Sayona 75%; Piedmont Lithium 25%). The planned restart at NAL remains on schedule for the first spodumene concentrate production in Q1 2023, with critical long‐lead items secured and senior staff recruited. NAL concentrator commissioning is projected for late Q3/early Q4 2022. The recent Pre‐Feasibility Study (“PFS” for NAL demonstrated the operation’s technical and financial viability and will form the basis of a Definitive Feasibility Study (“DFS”, expected in the second half of 2022. The DFS will assess the economics of a larger integrated NAL and Authier resource base and operation. In addition to the proposed NAL restart, the Placement will also provide strategic funding for Sayona to expand and grow its highly strategic Northern Hub resource base. The Northern Hub’s prospectivity is highlighted by the recent drilling discovery at the Company’s Moblan Lithium Project. The Placement will provide Sayona with considerable balance sheet strength as the Company is rapidly developing its lithium resource base in North America, amid escalating demand from the electric vehicle and clean energy revolution. Sayona is also assessing the viability of the lithium hydroxide or carbonate plant at NAL, allowing for increased value‐add to the operation and supporting the Québec Government’s battery strategy. Proceeds from the Placement will be used to:

New lithium discoveries to strengthen Moblan's potential
Sayona further strengthened its emerging northern Québec lithium hub, following the discovery of multiple new mineralized lithium pegmatites in the latest drilling at its emerging Moblan Project (Sayona 60%; SOQUEM Inc 40%). The Moblan Lithium Project is located about 100km north of the town of Chibougamau and approximately 85km from the Cree (First Nations) community of Mistissini. In January 2022, Sayona expanded its northern hub with the acquisition of 121 new claims, the Lac Albert Project, located 3.5km west of Moblan and spanning more than 6,500ha. A till and soil sampling program was undertaken at Lac Albert from 18‐27 May, with a total of 69 x 1kg soil samples and 34 x 15kg till samples collected to identify lithium-bearing occurrences and associated elements. In addition, 145 outcrops and boulders have been located and mapped with 56 samples from boulders and 37 samples from outcrops collected and sent to the lab for analysis. On 27 June, the company reported multiple new spodumene pegmatites identified at Moblan South, South East Extension, Moleon, and extensions to the Main Moblan lithium deposit at Sayona's Moblan Lithium Project, Québec. These discoveries provide the means to significantly increase the resource base of Sayona in North America. A 35-hole, 4,683m winter diamond drill program obtained grades of up to 2% lithium oxide (Li2O), showing the project’s potential in a region that hosts established, world‐class lithium resources. The drilling has shown that spodumene pegmatites are more significantly developed at depth than can be recognized at the surface, indicating the potential for the discovery of multiple pegmatite clusters. A 20,000m diamond drill program has commenced enabling an updated and a new resource calculation on the Moblan deposit, the new Moblan South discovery, and Moleon areas. More than 215 new drill sites have been permitted by the Québec resources ministry (MERN), to explore and define new lithium resources at Moblan.

• Multiple new spodumene pegmatites were identified at Moblan South, South East Extension, Moleon, and extensions to the Main Moblan lithium deposit at Sayona's Moblan Lithium Project, Québec.
• These discoveries provide the means to significantly increase the resource base of Sayona in North America
• Exciting new and distinct Moblan South Discovery is open in all directions located 200m south of the main Moblan deposit
• Highlights include 23.4m @ 1.69% Li2O from 17.6m and 27.1m @ 1.5% Li2O from 53.1m (Moblan South) and 32.1m @ 2% Li2O from 94.1m (Main Moblan dyke) and 23m @ 1.79% Li2O from 34.7m (Moblan East)

Cemented its plan to commence North American spodumene (lithium) production in 2023
Sayona cemented its plan to commence North American spodumene (lithium) production in 2023 following the formal agreement of the North American Lithium (NAL) to restart the program. On 28 June, the Sayona Quebec Inc. (SYQ) board formally authorized the restart of spodumene concentrate production at the NAL operation in Québec, requiring significant plant and infrastructure upgrades, aimed at improving product quality, recovery, and plant availability. SYQ is owned 75% by Sayona Mining and 25% by Piedmont. The proposed upgrade and restart budget are approximately C$98 million (approx A$110 million). Sayona has made significant steps to expedite the production restart, having recruited key personnel, secured critical long lead equipment items, progressed detailed engineering design work, and obtained nearly all required regulatory approvals. The NAL concentrator commissioning is on track, with the first production due in Q1 2023. The NAL restart project will be funded through cash contributions by both Sayona and Piedmont, each company having completed significant capital raises in the first half of 2022.
During March, Sayona doubled its resources base at its two flagship projects, NAL and Authier. In March 2022, the Company announced a total JORC combined Measured, Indicated, and Inferred Mineral Resource of 119.1 million tonnes (Mt) @ 1.05% Li2O. Sayona is targeting the restart of spodumene concentrate production at NAL from the first quarter of 2023, with preparations continuing to advance during the quarter. In addition, an evaluation of downstream processing at NAL is progressing to facilitate the production of lithium carbonate/hydroxide, supporting the Québec government's strategy to develop a 100% local battery supply chain, from mining to processing. The integration of NAL with Authier will create a world‐scale Abitibi lithium hub, advancing plans for downstream processing in Québec and taking advantage of its environmental and economic advantages including low cost, renewable hydropower, and established mining services industry and its proximity to the North American battery market. In April 2022, after the period ended, Sayona announced the testing of the Authier spodumene by leading lithium‐ion battery innovator NOVONIX (NASDAQ: NVX; ASX: NVX), reaffirming the quality of the Authier spodumene product. Post‐quarter, on 26 April 2022, Sayona announced the discovery of a significant new southern lithium pegmatite zone, the Moblan South Discovery, following a 35-hole, 4,683m diamond drilling program. On 22 March 2022, Sayona was admitted to the S&P/ASX 300 index following a significant increase in market value over the previous 12 months. Inclusion in this index signals a major milestone for companies as it is used as a cut‐off for investments by many global institutional investors, especially index funds which are required to maintain a weighting in the top 300 ASX stocks. The company closed the quarter with strong cash and cash equivalents of A$19.85 million.
Recommendation:
Sayona Mining Limited (ASX: SYA) is an emerging lithium producer, with projects in Québec, Canada, and Western Australia. The Group is targeting the restart of spodumene concentrate production at NAL from the first quarter of 2023. In addition, an evaluation of downstream processing at NAL is progressing, as per the NAL acquisition agreement. The company has recently released a Pre-feasibility Study On its flagship North American Lithium project and is currently undergoing a definitive feasibility study (DFS) for the profitable production of spodumene concentrate at NAL, combined with production from nearby Authier. The Pre‐feasibility Study (PFS) has confirmed the value of the North American Lithium (NAL) operation in Québec, Canada confirming technical and financial viability over the 27‐year life of mine. Sayona has recently received significant financial support for its growth strategy, with the recently undertaken successful single‐tranche placement to global institutional, professional, and sophisticated investors of A$190 million. Proceeds from the Placement will be primarily used to fund the restart of spodumene concentrate production at Sayona's North American Lithium ("NAL") operation in Québec, Canada (Sayona 75%; Piedmont Lithium 25%). The planned restart at NAL remains on schedule for the first spodumene concentrate production in Q1 2023, with critical long‐lead items secured and senior staff recruited. NAL concentrator commissioning is projected for late Q3/early Q4 2022. On 28 June, the Sayona Quebec Inc. (SYQ) board formally authorized the restart of spodumene concentrate production at the NAL operation in Québec, cemented its plan to commence North American spodumene (lithium) production in 2023. We believe that the company is on track to restart NAL following the recently signed formal agreement. We would like to recommend a SPECULATIVE BUY rating on the stock.