Why are Sayona Mining shares the most actively traded of the All Ords today?

Shares of Sayona Mining Ltd (ASX: SYA) are trading deep in the red today.

At the time of writing, the Sayona Mining share price is down more than 8% at 16 cents apiece.

Investors have pushed the share about today on a volume of 61.5 million shares, making it one of the most heavily traded on the ASX.

In wider market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is also down by more than 1.5% today.

TradingView Chart

What’s up with the Sayona Mining share price?

Today’s selling comes just one day after Sayona advised it has affirmed its plans to commence lithium spodumene production by 2023 in North America.

The announcement followed the formal agreement of the North American Lithium (NAL) restart program in Quebec, Canada.

Specifically, The Sayona Quebec Inc. board agreed to restart operations, noting the plant will require significant infrastructure upgrades.

Proposed upgrades are said to be in the realm of $110 million. It is owned 75% by Sayona and 25% by Piedmont Lithium Inc (ASX: PLL).

Piedmont released a statement today as well, adding further colour to the agreement.

The joy was short-lived, however. Investors have punished Sayona shares during Wednesday’s session giving back most of yesterday’s gains.

However, the basket of ASX lithium stocks has softened overnight, with the likes of Pilbara Minerals Ltd (ASX: PLS), Allkem Ltd (ASX: AKE) and IGO Ltd (ASX: IGO) each posting single-digit losses on Wednesday as well.

The weakness comes amid a June correction in various industrial metals, whilst lithium continues to trade sideways, as seen below.

TradingView Chart

In the last 12 months, Sayona Mining shares have held onto a 117% gain, as well as a 23% gain this year to date.

The post Why are Sayona Mining shares the most actively traded of the All Ords today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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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