Sayona Quebec CEO out as lithium miner looks to slash costs

Sayona Mining (ASX: SYA; US-OTC: SYAXF) is responding to the rout in lithium prices with a cost review of its North American Lithium (NAL) operation in Quebec. The project is a joint venture between the Australia-based Sayona (75%) and Piedmont Lithium (ASX: PLL), which holds the remainder.

As part of the review, Guy Belleau formerly CEO of Sayona Quebec has left the company. COO Sylvain Collard will assume direct management of NAL, reporting to Australia-based interim CEO James Brown. The company has also laid off an additional 14 staff in Quebec.

Sayona’s moves are aimed at cutting costs, managing cash flow and enhancing financial sustainability as lithium prices have dropped more than 80% over the past year. According to the Australian Department of Industry, Science and Resources, the spot price of spodumene concentrate will fall to US$2,200 per tonne in 2025 from an average of US$3,840 per tonne last year. The figures come from the department’s quarterly report issued in December 2023.

“This review of our Quebec operations is focusing on reducing our cost base, enhancing productivity and improving Sayona’s ability to continue to produce lithium throughout the market cycle,” Brown said in a release.

“As the only operating hard rock lithium mine in North America, NAL is well positioned to remain a strategic source of lithium for the North American battery and EV market. While current market conditions are challenging, we are confident that the long-term outlook for lithium remains positive as the energy transition gains momentum and the shift to an electrified world continues.”

Sayona only began shipping spodumene concentrate from NAL in August 2023. The mine has struggled to maintain production under previous owners Canada Lithium, RB Energy and a joint venture between China’s Jilin Jien Nickel and battery giant CATL.

Sayona shares have mirrored the lithium price freefall, losing 86% of their value over the past year. They currently trade at A4¢ apiece in a 52-week range of A3.9¢ to A30¢. The company has an A$453 million market cap.