Why did the Sayona Mining share price go gangbusters in August?

The Sayona Mining Ltd (ASX: SYA) share price had a tremendously strong month during August.

For the 23 trading days, the ASX mining share harpooned into the green, clipping a 51.3% gain for shareholders in the process.

Before the open on Thursday, the Sayona share price is 29.5 cents after lifting another 5% yesterday.

What’s up with the Sayona share price?

August was a flavoursome month for the miner with its share price clawing back losses incurred from a heavy sell-off that started in April.

Chief to the gains early on was Sayona’s announcement that it had restarted production at its North American Lithium asset, located in Canada.

First spodumene production is expected from the facility by Q1 2023. This is a huge step up for the company in its lithium production efforts.

Adding further upside to the investment debate has certainly been the price of lithium in recent months.

While most other commodity markets have drifted lower since June, lithium carbonate has shifted back towards all-time highs.

Even more promising was the recent earnings result from fellow lithium player Pilbara Minerals Ltd (ASX: PLS). The company recognised $1.2 billion in revenue and $561 million in net profit for the 12 months.

The uplift in earnings from Pilbara signals that real demand and supply forces in the markets are still very active and that producers are reaping the benefits of the same.

Following Pilbara’s printed earnings the ASX lithium basket has captured upside in the double-digits, with Sayona outshining in August.

Following the gains, the Sayona Mining share price now rests more than 103% higher for the past 12 months.

It trades on a price-to-earnings ratio (P/E) of 28.5x and presents a trailing earnings yield of 3.5%.

The post Why did the Sayona Mining share price go gangbusters in August? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why did the Sayona share price tumble 5% on Monday?
• Have Sayona Mining shares been a good investment in 2022?
• Why did the Sayona Mining share price beat the ASX All Ords on Tuesday?
• Why is the Sayona Mining share price surging 8% on Friday?
• Why is the Sayona Mining share price so volatile?

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.

from The Motley Fool Australia https://ift.tt/BCeraSG