Why is the Sayona Mining share price surging 15% on Monday?

a man sits on a rocket propelled office chair and flies high above a city

a man sits on a rocket propelled office chair and flies high above a city

It’s been a day of paltry moves for ASX shares in the All Ordinaries Index (ASX: XAO) so far this Monday. At the time of writing, the All Ords has gained just 0.08% at around 7,256 points after spending most of the morning in red territory.

But that is certainly not the case for the Sayona Mining Ltd (ASX: SYA) share price.

Sayona shares are on fire today. The ASX lithium stock has gained an impressive 15.24% and is now trading at 24 cents per share after closing at 21 cents last week.

So what on earth is going on with this ASX lithium producer today that might be prompting such a decisive push higher?

Why is the Sayona share price on fire this Monday?

Well, it’s unfortunately hard to say. There hasn’t been any fresh news or price-sensitive announcements from Sayona today.

However, we can look to what happened last week for a possible explanation for these Monday moves.

Last Thursday, Sayona came out with an announcement regarding its North American lithium operation, located in Québec, Canada.

As we covered at the time, Sayona revealed that “approximately 30% of plant and equipment upgrades are said to be completed. This is expected to accelerate with the number of construction workers on site set to double to 100 by September”.

Consequently, Sayona’s management expects the project to produce its first lithium spodumene concentrate in the first quarter of 2023.

It’s likely the announcement last Thursday has had some kind of impact on investor sentiment. That’s seeing as Sayona shares have risen more than 22% since the news was made public. So this appears to be what could be driving the Sayona share price higher today.

Other ASX lithium stocks are also enjoying some time in the sun this Monday. Liontown Resources Limited (ASX: LTR) shares are presently up more than 4%. While Core Lithium Ltd (ASX: CXO) shares are up 4.6%.

Pilbara Minerals Ltd (ASX: PLS) shares have gained almost 3% today. So clearly, there is a lot of love for lithium and not just Sayona today.

At the current Sayona mining share price, this ASX lithium stock has a market capitalisation of $1.99 billion.

The post Why is the Sayona Mining share price surging 15% on Monday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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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