Sayona’s Revenue Rises 11% but Losses Soar 190% in FY2025

Financial Performance Overview

Sayona Mining Limited has released its financial results for the year ended 30 June 2025, revealing a mixed performance marked by revenue growth but a substantial net loss. The company’s revenue climbed 11% to $223.4 million, reflecting ongoing demand for lithium amid a global push for electric vehicles and battery storage solutions.

However, this positive top-line momentum was overshadowed by a significant loss after tax of $294.3 million, a sharp deterioration compared to the $101.4 million loss recorded in the previous year. This swing was primarily driven by a $271.3 million impairment charge related to the North American Lithium (NAL) cash-generating unit, which Sayona assessed during the year.

Impairment Impact and Asset Valuation

The impairment reflects a reassessment of the carrying value of the NAL assets, which management concluded no longer justified their previous valuation on the balance sheet. Of the total impairment, $203.5 million is attributable to Sayona’s shareholders, with the remainder impacting non-controlling interests. This write-down has also contributed to a 44% decline in net tangible assets per security, down to $0.04 from $0.06 the prior year.

While such impairments are not uncommon in the mining sector given the volatility of commodity prices and project development risks, the size of this charge will likely prompt investors to scrutinize Sayona’s asset portfolio and future project viability more closely.

Operational Footprint and Strategic Moves

Despite the financial setback, Sayona continues to maintain a diversified lithium project portfolio. The company holds a 60% interest in the Moblan Lithium Project in Canada, a 49% stake in the Morella Lithium Joint Venture in Australia, and a 25% interest in the Vallée Lithium Project in Québec, Canada. These joint ventures reflect Sayona’s strategic focus on both North American and Australian lithium resources, positioning it to benefit from multiple regional markets.

Additionally, Sayona incorporated a new entity, Shock MergeCo Inc., in Delaware, USA, in November 2024. While details on the purpose of this new entity are limited, it may signal plans to expand or restructure operations in the North American market.

Dividend Policy and Market Outlook

The company did not declare or pay any dividends for the year, consistent with the prior period, reflecting a cautious approach amid financial pressures. The audited financial statements, reviewed by Ernst & Young without qualification, provide assurance on the accuracy of the reported figures but leave open questions about Sayona’s path to profitability and capital management going forward.

Investors will be watching closely for updates on operational progress in the joint ventures and any strategic initiatives tied to the new US entity. The lithium market remains dynamic, and Sayona’s ability to navigate asset challenges while capitalizing on growth opportunities will be critical in the coming year.