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North American Palladium Ltd. (TSX:PDL,OTC Pink:PALDD) announced plans to reduce the workforce at its Lac des Iles mine by 44 employees. The company also will not fill a further 17 vacancies.
North American Palladium Ltd. (TSX:PDL,OTC Pink:PALDD) announced plans to reduce the workforce at its Lac des Iles mine by 44 employees. The company also will not fill a further 17 vacancies.
The site will employ 422 workers after the cuts. According to North American Palladium, weak metals prices are to blame for the reduction.
As quoted in the press release:
Tied to this reduction is the decision to stop blending the low grade surface stockpile with the higher grade underground ore and return to a 14 day on, 14 day off operating schedule for the mill at a planned throughput of 13,400 tonnes per day when the mill is operating. The surface stockpile at less than one gram per tonne palladium is not economic at current prices.
Due to the reduction in low grade material being processed and the impact of the temporary mill shut down earlier this year as a result of water balance issues the company is revising its 2015 guidance to 160,000 to 170,000 ounces of palladium produced down from the previously announced 185,000 to 205,000 ounces.
Jim Gallagher, president and CEO of North American Palladium, said:
It is unfortunate that we have had to take this step at this time. It is imperative that we maintain a positive cash operating margin and continue our focus on sustainable long-term operation of the underground mine and on our exploration program. These cuts, along with the corporate office reductions that took place in August after the financial restructuring, will help us achieve these goals.
Click here to read the full North American Palladium Ltd. (TSX:PDL,OTC Pink:PALDD) press release.