Why is the Sayona Mining share price up 35% this week?

Female miner smiling at a mine site.Female miner smiling at a mine site.

The Sayona Mining Ltd (ASX: SYA) share price is rangebound today and trades in the green.

At the time of writing, the share is trading 1% higher at 19.3 cents apiece on no news. Sayona has extended gains today and is now up more than 57% over the past month of trade.

Meanwhile, the S&P/ASX 300 Metals & Mining Index (ASX: XMM) is down less than 1% today

What’s up with the Sayona Mining share price?

Sayona has caught a bid this week despite no market-sensitive updates from the company. Noteworthy however, is that the price of lithium continues to remain buoyant.

Whilst most commodity sectors sold off in the period over the past 2 months, lithium carbonate has remained top heavy and now trades in line with February 2022 levels at A$101,654 per tonne.

In that regard, lithium miners like Sayona have gained in strength relative to their counterparts in markets like gold, for instance.

Meanwhile, mining shares have strengthened since 15 July, reversing a downtrend.

The mining benchmark is now up less than 1% for the week, after rolling down to 3-month lows from a peak of 6,220 on 8 June.

Both the Sayona share price and the index are correlated and seem to move in a similar fashion, as plotted below for the past 6 months.

TradingView Chart

The Sayona share price has held onto a 150% gain over the past 12 months to date and is now surging more than 48% higher for this YTD.

The post Why is the Sayona Mining share price up 35% this week? appeared first on The Motley Fool Australia.

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