Sayona NAL expansion study confirms strong returns, lower costs

Sayona Mining Limited's Scoping Study for its North American Lithium (NAL) operation expansion forecasts a post-tax NPV(8%) of C$1,284m, an increase of C$479m over the base case, with an IRR of 26.4% and a payback of 46 months. The project targets an annual nominal SC5.4 production rate of 315 ktpa, increasing the process plant feed rate from 4,200 tpd to 6,500 tpd. C1 unit costs are projected to drop to C$759/t and AISC to C$920/t once fully operational, compared to base case costs of C$935/t and C$1,128/t, respectively. Initial CAPEX is estimated at C$366m, with construction expected to be complete by end CY29.

The NAL expansion leverages existing Ore Reserves, supporting a revised mine life of 24 years, underpinned by a total Mineral Resource of 95Mt at 1.15% Li2O and Reserves of 49Mt. The study highlights improved metallurgical recovery of 71.2% and plant availability of 92% due to flowsheet enhancements. The project is strategically positioned within North America's rapidly growing lithium market, aiming to be a leading hard-rock lithium producer.

The Scoping Study announcement comes alongside the introduction of "Elevra Lithium" as the new corporate identity following the merger of Piedmont and Sayona, reflecting a strategy to drive the energy transition. Elevra Lithium aims to achieve $15m in annual synergies and enhance its resource base, which now includes 106Mt of combined lithium Ore Reserves.