Sayona Mining Limited is undertaking an operational review of its North American Lithium (NAL) operation in partnership with its joint venture partner to optimise NAL’s cost structure in response to rapidly changing global lithium market conditions.
Sayona is preparing a review to reduce NAL’s cost base, manage cash flow, and ensure the Québec operation’s financial sustainability in a challenging market environment. The review is expected to be completed by Q1 2024 and announced to shareholders.
“This review of our Quebec operations is focusing on reducing our cost base, enhancing productivity and improving Sayona’s ability to continue to produce lithium throughout the market cycle,” Sayona Interim CEO James Brown said.
“As the only operating hard rock lithium mine in North America, NAL is well positioned to remain a strategic source of lithium for the North American battery and EV market. While current market conditions are challenging, we are confident that the long-term outlook for lithium remains positive as the energy transition gains momentum and the shift to an electrified world continues.”
Guy Belleau has left his role as CEO of the Québec subsidiary, Sayona Inc., effective 24 January 2024, as part of an operational review. Belleau joined Sayona in late 2022 and took up the position in January 2023.
Sylvain Collard, Sayona’s Chief Operating Officer (COO) for Québec, will take over direct supervision of Sayona’s Québec operations and report to Mr Brown in Australia.
Collard, a 19-year veteran in the mining industry, has managed copper and gold mines in Québec, Ontario, and the US. He joined Sayona in 2022 and is responsible for NAL’s restart and ramp-up process, as well as the exploration and development of the Moblan Lithium Project.
In combination with management changes and in response to current lithium market conditions, 14 more employees have been laid off in the Québec operations. Sayona appreciates the workers for their efforts to ensure the smooth commencement of production at NAL in 2023.
“While regrettable, these personnel changes are well targeted to ensure that Sayona has the right mix of experience and expertise to deliver key outcomes for shareholders. We are confident we now have the right team in place in Québec to maintain and enhance production, while enabling enhanced productivity to ensure our continued growth as a leading force in North America’s electrification,” Brown added.
