It has been another positive day for the Sayona Mining Ltd (ASX: SYA) share price.
In afternoon trade, the lithium developer’s shares are up a further 19% to a multi-year high of 22 cents.
This means the Sayona share price is now up an impressive 55% since the start of the year.
Why is the Sayona share price racing higher?
There have been a couple of potential catalysts for the rampant rise by the Sayona share price this year.
One is the recent announcement relating to the company’s North American Lithium (NAL) and Authier projects. That release revealed that the two projects now have a combined measured, indicated, and inferred mineral resource of 119.1 million tonnes at 1.05% lithium oxide.
This represents the doubling of its mineral resource from management’s previous estimates.
What else?
Another potential catalyst for the rise in the Sayona share price is its inclusion on the All Ordinaries and ASX 300 indices.
Its shares were included on both indices at the start of the week following the quarterly rebalance.
When a share is included on an index it can lead to increased buying. This is because index funds have to buy shares to reflect the changes and some fund managers have strict investment mandates stating that they can only buy shares if they trade on certain indices. This could mean some fund managers have finally been able to pick up Sayona shares this week.
Shareholders will no doubt be hoping the buying frenzy continues.
The post Why is the Sayona (ASX:SYA) share price rocketing 19% higher? appeared first on The Motley Fool Australia.
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More reading
- Surging again: Why has the Sayona (ASX:SYA) share price rallied 46% in a month?
- Why IDP, IGO, Sayona Mining, and Yancoal shares are storming higher
- Sayona (ASX:SYA) share price lights up 18% as lithium resource doubles
- Sayona Mining (ASX:SYA) share price halted ahead of lithium news
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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