The stock of Sayona Mining, an Australian company behind several lithium mining projects in Quebec, lost nearly 30% of its value on Thursday. This fall comes after the company’s main shareholder, Piedmont Lithium, put all of its shares in the company up for sale.
It thus disposed of shares worth approximately 52 million Canadian dollars. In a press release, Piedmont Lithium indicated that it was taking this decision to “maintain a prudent balance sheet”.
Over the past year, the value of Sayona Mining’s stock has collapsed by 78%.
Layoffs
The Quebec subsidiary of Sayona Mining announced a restructuring a month earlier, as part of a global drop in the price of lithium. Fifteen employees were fired. Piedmont Lithium also announced in early February a 27% reduction in its staff to control expenses.
“We are focused on optimizing operations and developing assets that generate value for our shareholders,” responded the communications director of Sayona Québec by email. The company is seen as an important player in the Quebec electric vehicle battery industry.
Moreover, Piedmont Lithium, an American company, remains a 25% shareholder in Sayona Québec, which currently operates the only active lithium mine in the province, the Lithium America du Nord (LAN) complex, in Abitibi-Témiscamingue. “The LAN complex continues its operations and the process for the Authier project is maintained,” said Sayona communications director Bianca Galimi by email.
Sayona also owns 60% of the Moblan project and 100% of the Lac-Albert project, in the Eeyou Istchee Baie-James territory.
The Coalition Québec Meilleur Mine, which opposes the Authier project since it is located near an esker in Abitibi-Témiscamingue, wanted to react. “This villain arrives proves once again that there is no risk to take with such a fragile and financially volatile company,” commented the citizen group in writing.
The office of the Minister of Economy, Innovation and Energy, Pierre Fitzgibbon, indicated that it had taken note of the day’s stock market results. “The value of commodity minerals such as unconverted lithium (spodumene) is very volatile and therefore public companies exposed to commodities fluctuate. Our vision is to integrate Quebec lithium into a value chain where its transformation will ensure the stability necessary for its exploitation without regard to the price of commodities,” commented the firm by email.