Maiden cash flow for Sayona-Piedmont Canada lithium alliance
Sayona Mining (ASX: SYA) and Piedmont Lithium (ASX: PLL) have dispatched their first shipment of lithium oxide concentrate as part of the North American Lithium (NAL) alliance with about 20,500 wet metric tonnes arriving at its undisclosed destination aboard the Liberian-registered vessel AAL Moon.
The first cash payment equivalent to 90% of the value of the shipment has been received, the sale having been made through what is described as a major trading company.
Sayona controls 75% of NAL with Piedmont holding the other 25%.
Sayona’s assets are located in Quebec and comprise the Authier lithium project and its emerging Tansim project, supported by the strategic partnership with Piedmont Lithium.
Price to be disclosed
Sayona says it will disclose the price received for the shipment in its next quarterly report.
The shipped grade of the spodumene concentrate was 5.35% lithium oxide, and it was adjusted from the standard 6% grade.
Another 30,000 wet metric tonnes of concentrate inventory are now stored at the Canadian port and available for upcoming shipments.
Piedmont will receive 15,000 tonnes of that in its first shipment later this month under its rights as an off-take partner.
Production ramp-up continues to make progress
Sayona reports that the NAL mine and processing plant ramp-up continues to progress well.
A recent failure of the rod mill resulted in four days being lost.
However, the company says that the plant came back online smoothly and has performed well since.
Reviewing forecast production
The NAL alliance is now in the process of reviewing its forecast production and sales in light of the ramp-up in performance.
In addition, NAL has also increased storage capacity at its tailings facility.
A new crushed ore dome will improve winter operational efficiency.
NAL comprises 19 contiguous claims covering 582.31 hectares and one mining lease, covering approximately 700 ha.
It is situated in La Corne township in Québec’s Abitibi-Témiscamingue region.
The project lies 60km north of the city of Val d’Or, a major mining service centre, and is in proximity to Sayona’s Authier lithium project.