Earnings call transcript: Sayona Mining Q3 2025 sees revenue growth amid market challenges

Sayona Mining Ltd reported its Q3 2025 earnings, showcasing a revenue of $31 million, despite facing operational challenges due to unseasonable weather. The company’s stock experienced a slight increase, reflecting a 5.26% rise, closing at $0.02. According to InvestingPro data, the company maintains impressive gross profit margins of 90.85% and holds more cash than debt on its balance sheet. The company is navigating a lithium market with oversupply issues but remains focused on cost management and operational efficiency.

Key Takeaways

• Sayona Mining’s Q3 revenue reached $31 million.
• Lithium recovery improved, with a new reagent increasing recovery to 72% in March.
• The company is planning a merger with Piedmont Lithium.
• Stock price rose by 5.26% following the earnings report.

Company Performance

Sayona Mining demonstrated resilience in Q3 2025, achieving $31 million in revenue amid challenging market conditions. InvestingPro analysis indicates the company’s revenue has grown 72.75% over the last twelve months, though it’s currently trading at an attractive Price/Book multiple of 0.35x. The company’s efforts in cost management and operational efficiency have been pivotal as it navigates a lithium market characterized by oversupply. The proposed merger with Piedmont Lithium is set to bolster its competitive position, potentially making it the largest hard rock lithium producer in North America.

Financial Highlights

• Revenue: $31 million
• Cash and cash equivalents: $88.9 million, down from $110.4 million in December
• Average realized selling price: $11.42 per tonne, an 8% increase
• Unit operating cost: $13.74 per tonne, a 7% increase in AUD

Outlook & Guidance

Sayona Mining reaffirmed its full-year production guidance of 190,000 to 110,000 tonnes. The company plans a tailings dam raise in FY2026 and will focus on updating its mineral resource estimates in the second half of 2025. No exploration activities are planned for FY2026, emphasizing resource optimization. InvestingPro subscribers can access 12 additional exclusive tips about Sayona Mining, including detailed analysis of its financial health score of 2.38 (FAIR) and comprehensive valuation metrics. Get access to the full Pro Research Report for deeper insights into the company’s future prospects.

Executive Commentary

CEO Lucas Dow stated, "Despite external challenges, Sayona delivered resilient operational results." He emphasized the company’s focus on improving its cost position and highlighted the strategic rationale behind the merger with Piedmont Lithium, which aims to create the largest hard rock lithium producer in North America.

Risks and Challenges

• Lithium market oversupply could pressure prices and margins.
• Weather-related operational disruptions may impact production efficiency.
• Integration risks associated with the proposed merger with Piedmont Lithium.
• Currency fluctuations affecting operating costs and revenues.
• Potential regulatory changes in key markets.

Sayona Mining’s Q3 performance reflects its strategic focus on operational efficiency and market positioning amid industry challenges. The company’s proactive measures and strategic initiatives indicate its commitment to long-term growth and shareholder value.

Full transcript - Sayona Mining Ltd (SYA) Q3 2025:

Conference Operator: I would now like to hand the conference over to Mr. Lucas Dow, Managing Director and Chief Executive Officer.

Please go ahead.

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: Thank you. Hello, and welcome, and thank you for joining us today. I’m joined on today’s call by Doug Al Elder, our CFO Sylvain Collard, our President and COO of Canadian Operations Andrew Barber, our Director of Investor Relations. We’ve scheduled today’s call to be able to cater for people both here in Australia and also North America. As a consequence, we released our quarterly results last night Australian time in order to give everyone an opportunity to review our performance.

And with that, I’m pleased to present Syona Mining’s update for the March. Despite challenging conditions, we maintained operational momentum, progressed critical corporate initiatives and reinforced our long term growth platform. During today’s call, I’ll step through operational results, our exploration activities, a corporate update and our financial position before turning the call over for questions. Before we begin, unless specified otherwise, all dollar amounts quoted on the call are Australian dollars. Let me begin with our health and safety performance.

Over the March, our total recordable injury frequency rate improved as compared to the previous quarter, which had been impacted by safety performance at our mobile and drilling campaign. At North American Lithium, NAL, we sharpened our focus on lead indicators, including stronger hazard identification and proactive near miss reporting. Specific improvement initiatives included targeted workforce engagement during toolbox and health and safety needs, leadership engagement with supervisors and managers and reinforcement of safe work behaviors and risk of ownership at the frontline level. These measures are critical to continue to embed a strong safety culture as we grow. On ESG and permitting, during the March, we launched tender processes for environmental and biological studies needed to support permit applications for both the NAL brownfield expansion and Mobland greenfield projects.

Timing of work is critical as biological studies must align with the Northern Hemisphere summer survey window to be most effective. Now moving to mining and crushing operational performance at NIL. At NIL, total ore mined for the quarter was approximately 322,000 tonnes, down 13% quarter on quarter. The volume of ore mined in the quarter reflect an operational decision to leave exposed and excessive ore in the pit rather than mine. By leaving uncovered ore in the pit, we avoided unnecessary wrong stockpile re handling activities and associated costs.

Importantly, total material movement, including waste stripping increased 15% quarter on quarter positioning us with greater in pit ore availability for future quarters. We achieved improvements to drill and blast practices and activities, including new emulsion products to enhance fragmentation and reductions in downstream rock breaking activities while reducing oversized material, all of which support long term mining efficiency. However, the March wasn’t without challenges. Unseasonable store and refreeze cycles impacted crusher circuit performance. Specifically, saw temperatures rise well above zero degrees Celsius, which caused frozen material to thaw and solidify in some instances, followed by snap freezing conditions where the material refroze impacting equipment performance.

This resulted in conveyor belt failures and all blockages. Such failures led to around one hundred and twenty hours of unplanned mill downtime in January alone. While our crushed ore dome helped mitigate these impacts, its storage capacity alone provides for about one point five days of mill feed. As a mitigating action, additional mobile crusher units were deployed to further strengthen resilience against weather variability, noting that these adverse weather conditions are not expected to persist beyond winter. We’re also confident that mitigating actions combined with contingency planning will not see repeat in future winter seasons.

In relation to processing performance, the mill processed 287,792 tonnes of ore at an average feed grade of 1.13%, slightly below the December. Process plant utilization for the March was 80% as a consequence of both the unseasonal weather interruptions and a scheduled five day maintenance shutdown to realign the rod and ball mills. Pleasingly, despite these setbacks, lithium recovery improved to 69%, up 1% from the previous quarter. This improvement result was underpinned by continued process discipline, effective use of magnetic separation and optimization of flotation circuits, including introduction of a new collector reagent that delivered a record 72% recovery in March. As a consequence, spodumene concentrate production for the quarter was 43,261 tonnes, with this result having been impacted by the adverse weather conditions and the associated crushing circuit performance, combined with the scheduled major mill maintenance shutdown.

Now moving to sales for the period. Total concentrate sold in the March was 27,030 dry metric tons. This was in line with prior guidance with sales volumes for the second half of financial year twenty twenty five being split roughly 30% in the March and 70% in the June, deliberately skewed to capture higher port sales prices versus those available in the spot market. Revenue for the quarter was $31,000,000 reflecting lower volumes, but supported by an 8% increase in average realized selling price of $11.42 dollars per tonne on an FOB basis. All sales during the quarter were to Piedmont under our existing offtake agreement.

In terms of unit operating costs, unit cost per tonne sold on an FOB basis rose 7% quarter on quarter to $13.74 dollars per tonne. However, in U. S. Dollar terms, cost fell 1% from $837 per tonne to $830 a tonne, a function of currency movement. The cost increase in Australian dollar terms reflects greater pre stripping activity and higher processing expenditure associated with the major mill maintenance shutdown.

Despite these temporary pressures, NIL remains within FY 2025 production and cost guidance ranges, a key achievement given external headwinds. Now focusing on exploration and resource growth. Within Quebec, following two intensive drilling years in 2023 and 2024, where over 129,000 meters were completed across NAL and Mobilen, Field exploration activities have now wound down. Focus has shifted firmly to compiling those results and updating mineral resource estimates for both assets. Updated mineral resource estimates or MREs are targeted to delivery in the second half of calendar year 2025.

It’s worth highlighting that the drilling success over the past two years has significantly expanded our resource base, supporting long term operational flexibility and growth plan. Additionally, we’re taking a disciplined approach by relinquishing lower priority tenements at Tansman and Pontiac, sharpening our capital allocation. In Western Australia, exploration continues across both the Morella joint venture and the 100% Siona owned projects. At Mt Eidin, our Morella joint venture project, planning is underway for follow-up drilling following strong rubidium and lithium intercepts including assays of up to 0.5590.63%, respectively. At Tabataba, reverse circulation drilling has continued our understanding of the lithium prospectivity along the six kilometer Western Gabbaro Corridor.

Turning now to corporate development and specifically our proposed merger with Piedmont Lithium. Key milestones achieved during this quarter in relation to the merger being regulatory approvals were secured from both The U. S. And Canadian governments, specifically ICA, HSR Act and CFIUS approvals. These regulatory clearances significantly derisk the transaction time line, which we expect to complete mid calendar year twenty twenty five.

Next steps for the merger include shareholder votes for both Sayona and Piedmont, which are expected in the coming months and Sayona will convene an extraordinary general meeting for approval of the merger itself, a conditional $69,000,000 placement of Resource Capital Fund VIII RCF at $0.32 per share and it’s important to note that we are on the same terms as announced in November of twenty twenty four. At the AGM, we’ll also be seeking approval for a share consolidation at a ratio of 100 and fifty:one and a name change to Allegra Lithium Limited. As a recap, the post merger structure will have an approximate fifty-fifty ownership split between Sayona and Piedmont shareholders. Board structure will reflect balance and depth with four directors nominated by Sayona and four directors nominated by Piedmont. I will serve as Managing Director and CEO and Dawn Hickton from Piedmont will chair the new Board.

The compelling strategic rationale of this transaction is underpinned by this merger creating the largest hard rock lithium producer in North America, dual ASX and NASDAQ listings will provide improved access to global capital markets and the combined portfolio offers scale, growth optionality and significant synergies across operations, logistics and marketing. In relation to Sayona’s financial position, closing the quarter, Sayona held cash and cash equivalents of $88,900,000 down from $110,400,000 in December 2024. The cash decrease reflected lower planned sales volumes, 7,000,000 operating loss from NAL, dollars three million of sustaining capital expenditure, dollars 7,000,000 payment of exploration invoices under flow through share funding as flagged last quarter and $4,000,000 of merger related transaction costs. Importantly, NAL continue to approach a cash breakeven position recording a relatively modest $6,000,000 operating cash outflow for the quarter. With a forward look to say on this financial position subject to shareholder approval, the conditional $69,000,000 placement will significantly strengthen the post merger balance sheet at a $0.32 per share reflects the value that RCF placed on Saona.

And combined with the disciplined capital management, this positions us to fund development activities across the merged company project portfolio and to accelerate value realization. In closing, despite external challenges, Sayona delivered resilient operational results, maintained strategic discipline and made critical progress toward completing a transformational merger. Full year production guidance range of 190,000 to 110,000 tonnes remain intact with unit cost guidance range also reaffirmed. Updated mineral resource estimates, NAL and Mowland plus drilling momentum in Western Australia provide a clear growth plan. And the Allegra platform post merger will offer unrivaled exposure to American lithium growth.

We remain confident in our ability to generate long term sustainable value for all stakeholders. Thank you, and I’m happy to take questions.

Conference Operator: Thank Your first question comes from Austin Young with Macquarie. Please go ahead.

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: Good morning, Lois and team. Just two questions from me, please. I can see that this quarter was impacted by this unseasonal weather condition. I wanted to get some color on the improvement in the last quarter of the year. Has the utilization gone up in April to date now?

The second question is around your capital spending plan for the next year in terms of your plan for exploration and any significant capital outflow? Thank you. Thanks, Austin. Thanks for the question. I think a couple of things.

Figures across the adverse weather is behind us. But as I mentioned in my opening remarks, Sylvain and the team have put a number of mitigating and also contingency planning activities in place. Specifically, we’ve mobilized a scalping and also a mobile crushing facility that in short allows us to be able to bypass the crushing facility and feed directly into the dome. And I’ll pass to Sylvain in a moment. He can give a little more color on that, Austin.

But on the back of that, we’ve hit we’ve the final quarter quite strongly. So we’re certainly encouraged coming out with a wet sale on both volume and cost. And then the in relation to your capital, probably the most significant piece on the capital front for FY 2026 relates to another tailings dam raise that’s required. So you’ll see an increase for that. We’ll be out with guidance with our August results, but it’s not materially I don’t expect it be materially greater than this year.

In terms of exploration activity, we don’t have any exploration activity planned in the in FY 2026. As I mentioned, we’re really focused on consolidating the MRE updates and getting busy with the feasibility studies for both NAL and Moblan. So Wayne, I might just kick it across to you and then maybe just want to walk Austin and the rest of the folks in the call through a little more detail of how those adverse weather conditions impacted us and then what you and the team have done on-site.

Wayne, Operational Leader, Sayona Mining: Yes, for sure. Thank you, Lucas. So maybe just to put in perspective what happened exactly between December 25 to December 31. The temperature in the Abisibi region went up for five days over zero degrees Celsius. So you understand the snow was melting quite intensively.

And at the same time, we had over 35 millimeters of precipitation, which is very unusual in the region and has been creating a lot of impact, especially on the ramp up. So for five days, it was very difficult to see the crushing area. And after that the temperature decreased down to 30 degrees. So you can understand like Lucas explained very well, the solidified material was going everywhere in the crushing area and boom you have minus 30 degrees. So even if we have a heating system, when you have that kind of temperature mixed with slurry and water, everything has been frozen very drastically.

So we had to put back some heating system in the system to be able to remove that material. But what we had in terms of mechanical issues was plug in feeders and screens and the major impact was mainly on conveyors. So you need to understand 75% of our conveyors are starting from inside the crushing area, but 75% are outside and not well protected for winter conditions. So we had some issues with ripping conveyors, mechanical supplies breaking off. And also we had to work in extreme cold temperature to fix all of it.

So that’s why we lost so many hours in terms of operation. So what you want to hear is what was the immediate action. So we have in place a crushing, sweating just to make sure they are focusing only on the crushing area just to make sure they complete the proper maintenance and fix the major issues. Also at the same time, we have been mobilizing a crushing mobile crusher on the ramp up. And this one is able to provide MGB MG20 material, which is roughly 0.75 of an inch.

And this material can be refeed directly to the crush ore dome and refeed the processing plant. So as we speak right now, we still have that crushing mobile crusher at site and we’re using also a scalper to produce 15% to 20% of MG20 material to refeed the systems. So it’s going very well. So the approach will be exactly the same for next year. We’re planning to keep the scalper in place using the C150 crusher.

So in terms of producing that contingency material, we’ll be producing for each ton we process 15% to 20% of MG 20. So we’re going to be in very good shape next year when the winter will come back with sufficient MG 20 material to go through that fluctuation in terms of temperature. So this is the plan for next year.

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: Thank you. I’ll pass that.

Conference Operator: Your next question comes from Andrew Harrington with Petro Capital. Please go ahead.

Andrew Harrington, Analyst, Petro Capital: Hi, good morning, gents. Thanks for

Wayne, Operational Leader, Sayona Mining: the time. This is for

Andrew Harrington, Analyst, Petro Capital: a broader question on the post merger company. Does assuming prices stay where they are, where does realized price is there any impact for the merger on realized prices? And following your commentary in the quarterly about shipping costs being excluded for Piedmont deliveries, does the post merger entity have a different cost structure? And then I have a second question, if that’s all.

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: Hi, Andrew. Thanks for the question. Yes, so I think we’re obviously continuing to evaluate what the forward curve is doing and so forth. I think you’ll see that we’ve taken advantage of being able to lock in some of those opportunities when the forward curves and contango. So and they’ll provide some price protection.

There are levers that we’ll continue to play out. As you flagged, post the completion of merger, the Piedmont offtake agreement will fall away, which does provide a freight benefit to that volume that had gone out last quarter, which will fall away. But I think on a combined basis, we’re still very confident of the synergies being realized as we move forward, we’ve able to cut those larger volumes together and so forth and be able to balance that out in addition to being able to manage those tonnes in a more effective way.

Andrew Harrington, Analyst, Petro Capital: So that mean that like costs would the guidance for this year was sort of, let’s say, 1,200 of the midpoint. Is that going to improve in FY 2026, ’20 ’20 ’7 or

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: Yes, we’re certainly focused on improving our cost position. I mean it’s all about getting in IL-two cash breakeven or better, Andrew. And we’ll be able to with guidance for FY 2026 with release to our August results.

Andrew Harrington, Analyst, Petro Capital: Okay. Well, you almost got there. Even this reduced

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: We’re starting to close in on it, but there’s still more work to be done. Setting aside some of those the unseasonal weather and so forth, we’d have been pretty close. But anyway, more work to do, but as I said, we’re confident we’ll be able to rein that in.

Andrew Harrington, Analyst, Petro Capital: Okay. And then the second question, what is the scope and timing that you’re looking at for the NAL expansion in terms of where would you ideally begin and and what’s what’s the scale in terms of you you know, in Sky, you know, what’s it looks like?

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: What do you want

Andrew Harrington, Analyst, Petro Capital: to do with And market where it is today is very difficult, but what’s the plan?

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: Understood. Thanks, Andrew. So I think probably two things. One, the environmental and biological studies have kicked off. So all that work required for permitting is underway.

So that’s endeavoring to derisk the production profile or the development profile on that basis. The other key part key important piece of work that’s happening at the moment is the updated MRE on the back of those results. I think that will help shape it. We certainly are looking at a material expansion, whether that’s 50% or 60% or doubling of an additional 50% or 60% over and above NIL’s current capacity or whether it’s a doubling of the capacities, a piece that we’re going to work through and Sylvain’s underway with a scoping study to work that out. Once we’re through that, we’ll then year our win on that preferred option and then have more specific timing around when we might be able bring that project to market in light of one, both market conditions and two, also what the permitting regime is depending upon the ultimate capacity that we go for.

Andrew Harrington, Analyst, Petro Capital: Okay. Thank you.

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: Thanks, Andrew.

Conference Operator: There are no further phone questions at this time. I’ll now hand it back to Andrew Barber to address any written questions.

Andrew Barber, Director of Investor Relations, Sayona Mining: Thank you. Lucas, we have a couple of questions. Firstly, if Magaland was a stand alone project, it’d be valued somewhere north of $400,000,000 possibly even in today’s pricing environment. At this point, analysts don’t seem to be attributing that value. What’s being done to help change that?

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: Yes. Thank you for the question. A couple of opening remarks, then I’ll just then I will pass it over to you, Andrew. I think a couple of things. Obviously, challenging environment at the moment within the challenging environment within the market at the moment around greenfield projects, given the market is in a state of oversupply and so forth.

So Mark is necessarily rewarding the excellent results we’ve seen at both in AL and Mobil Air. The key activities for us is to get those MRE updates complete. And as I said, we expect that to be in the second half of this calendar year. That will be important because I think that will give people a very clear insight in terms of the potential for both NIL and Moglan from a reserve perspective rather than just what we’ve seen on a resource basis. So getting that work done is critically important.

I think the other part that we certainly want shareholders to be aware of is that we’ve had a conservative effort over the last nine or ten months around engaging shareholders and making the market aware of what’s in our portfolio and in our stable development opportunities. And Andrew, you might just sort of walk those folks on the call through exactly the type of activity we’ve done so that I guess in short, I want to make sure that people recognize we’re certainly not sitting back in our hands with where they’ve been in the drum about these projects, but there’s a logical process to go through. Andrew, over to you.

Andrew Barber, Director of Investor Relations, Sayona Mining: Yes. Thanks, Lucas. Look, firstly, I’d say that just even these webcasts and teleconferences have been a key initiative over the last twelve months that I know investors have been asking for, gives everyone an opportunity to ask questions and for us to address queries that we have received and do so in a public group forum, so everyone can hear the answers. Other things that we’ve been doing have been investor videos that you’d find on our website. We’ve undertaken interviews with our clients Rockstock channel to go through hour long detailed sessions with him.

We’ve undertaken quite a bit of marketing with trying to expand our institutional investor base in Sydney and Melbourne. And we saw the results of that with the support we received in the capital raise last November, December. We were brought in five or six new long only Australian institutional funds, which obviously helps with the quality of the register. We’ve also commenced working in The U. S.

And Canada with Piedmont aligned shareholders and brokers. Obviously, as the merger progresses, it’s important that we bring those people along as well and they get to understand who the management team will be for the combined entity going forward. So that work’s been undertaken. We’ve attended conferences at Fast Markets, Minds Money, PDAC. In the next month, we’ll be attending the global Canaccord Global Mining Conference, the Mining Investment Event in Quebec, and we’ll have a number of others that we will attend during the year.

So we have been undertaking fairly active program that’s focused on both making sure that retail shareholders have access to information and have access to ask questions and engage with yourself, Lucas and the team, and then also expanding that reach into Australian and international institutional investors.

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: Thanks, Andrew.

Andrew Barber, Director of Investor Relations, Sayona Mining: Okay. I’ll move on to the next question. It was about input crushing, which I think has been answered. So the next question then is at Moblan, is there enough Cesium content to contemplate adding a circuit into the flow sheet to capture it?

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: Yes, that will be work that Souane and the team will pick up as part of the updated DFS for Moblan. As is probably a side note, we’re looking at all potential byproducts, both NAL and Moblan. In fact, we’ve had a look at Tantalum at NAL as well. So we’re certainly not sitting there letting any of those byproducts go to potential byproduct streams go to waste with working through that methodically, and they’ll feature as part of those respective studies for NIL and Noblam.

Andrew Barber, Director of Investor Relations, Sayona Mining: Okay, great. Thank you. On the consolidation that’s proposed, why was the ratio chosen at 100 rather than a more modest number?

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: Yes, great question. Couple of reasons. One of the key elements, particularly with the merger in mind is ensuring that the ADR, so the stock that will trade on NASDAQ’s appropriately priced. In short, if we were just to roll over at current levels, we would have challenge we would struggle to be able to attract investors in The U. S.

So one, investability in The U. S. The other component as well, particularly for institutional shareholders is that they’ll have a certain amount of volatility that they can have within their portfolio. And the reality is the level of our share price at moment in their pricing is that you see extreme volatility with relatively small movements, which then basically precludes being able to bring on institutional investors. So it’s a key part from about ensuring that for Allevra, the merged company is investable both in The U.

S. And in Australia. And I think probably just the other point, we had some feedback from retail investors. I just want to reiterate, with a share consolidation, no one’s losing their shareholding. It’s effectively the same size pieces, the market cap is unchanged.

It’s just how it’s carved up. So rather than having a very small slither, you just get the pieces are just carved up a little larger than having a whole heap of tiny pieces within the pizza. So I think it’s just important that particularly for retail, because I know there is a little bit of concern there that certainly retail investors are not disadvantaged on the back of consolidation.

Andrew Barber, Director of Investor Relations, Sayona Mining: Great. Thanks, Lucas. Moving on to the PFS for now. Have you got an estimate of when that will be ready and the same for Moblan?

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: Yes. So as I mentioned earlier, key things for us, get those environmental and biological studies underway, which has occurred. In parallel, get the MRE updates completed for both NAL and Mobland so that the mine planners can go to work in terms of understanding what those pits will be able to support. And from there, the processing work will resume. So we’ll have more to say around those specific timelines.

But in short, the approach we’re taking is we’ll have scoping studies for both of those projects initially. And then from there, we’ll zero in on a definitive case and it may well provide us opportunity to move straight to DFS rather than have to get off PFS and then IL.

Andrew Barber, Director of Investor Relations, Sayona Mining: Great. Thank you. Now a question on the Tesla contract that Piedmont has. When is that expected to end? And is it likely to be extended?

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: Yes. So the Tesla contract is a Piedmont contract. So effectively, that won’t come across until post completion of the merger. At that point, we’ll have a look at it. I think ultimately, the way that we’ll be approaching contracts for a lever, the merged entity, will be on whatever provides the best return for shareholders.

So Tesla has been as we understand it, Tesla has a good customer with Piedmont, but ultimately, need to understand is that the very best we can do or are there other alternatives that we might have that generate a better return.

Andrew Barber, Director of Investor Relations, Sayona Mining: And Lucas, just looking back to Moblan now, is IQ Investment Quebec committed to Moblan or are they looking to sell their share of that project?

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: Well, ultimately, that’s a question for Investment But what I would say is that Investment Quebec have been a great partner. They participated and contributed through all the exploration work that we’ve done at Mobiland. They continue to be great supporters of the project, we value their partnership.

Andrew Barber, Director of Investor Relations, Sayona Mining: Okay. Thank you, Lucas. Ashley, that’s all the questions I have now.

Conference Operator: You. I’ll now hand back to Mr. Lucas Do for closing remarks.

Lucas Dow, Managing Director and Chief Executive Officer, Sayona Mining: Thanks, Ashley. Look, thanks again for people joining. Thank you also for the questions and the continued support. We’re very excited about this next quarter in terms of delivering both on volume, costs and then importantly concluding the merger as well. So thanks again and have a great day.

Conference Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.

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