The Sayona Mining Ltd (ASX: SYA) share price has plunged lower over the last 30 days.
At the time of writing, the Sayona Mining share price is 13 cents, 50% lower than it was this time last month.
For context, the broader market has also slipped in that time. The S&P/ASX 200 Index (ASX: XJO) has dropped 6.7%, while the All Ordinaries Index (ASX: XAO) has fallen 7.1%.
Letâs take a closer look at whatâs been weighing on the ASX lithium share lately.
What’s going wrong for the Sayona Mining share price?
The last 30 days have been challenging for Sayona Mining.
The stock’s first blow came on 23 May when the company released the results of a pre-feasibility study at its North American Lithium operation. The study found the projectâs net present value is around $1 billion. That factored in an average spodumene concentrate price of US$1,242 per tonne and was seemingly less than the market expected.
After plunging 25% over the two days following the release of the studyâs results, the Sayona Mining share price was put into a trading halt on 25 May as the company conducted a $190 million institutional placement. The placement saw the company offering new shares for 18 cents apiece.
But the worst knock felt by Sayona Mining’s stock came earlier this month.
ASX lithium shares suffered through a sell-off event on 1 June. Stock in Sayona Mining tumbled 18% amid news of a bearish broker’s note on lithium prices, an Argentinian reference price, and a major electric vehicle manufacturerâs intent to mine its own lithium.
And the dip didn’t end there. The Sayona Mining share price is now nearly 41% lower than it was at the end of May. Itâs also 7% lower than it was at the start of 2022 but 116% higher than it was this time last year.
The post The Sayona Mining share price has crashed 50% in a month. Whatâs going on? appeared first on The Motley Fool Australia.
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More reading
- Which ASX lithium shares are producing and which are not?
- Why Macquarie still sees âmaterial upsideâ for ASX lithium shares
- Why Nanosonics, REA, Sayona Mining, and Zip shares are dropping
- Which ASX lithium shares are rebounding on Thursday, and which are not?
- Is this the real reason ASX lithium shares cratered on Wednesday?
Motley Fool contributor Brooke Cooper 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 Scott Phillips.
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