TORONTO (CP) -- Due to the impact of recent adverse market conditions on global commodity prices, LDI is currently operating well below breakeven," the company stated Tuesday.
"In particular, declining sales and production in the automotive industry, the major consumer of palladium and platinum, suggest that PGM (platinum group metal) producers will face significant challenges in the near term."
The company, which produces four per cent of the world's palladium, noted that prices for the metal have fallen from a high of $582 an ounce to $180 an ounce and platinum has dropped from $2,273 an ounce to about $880.
CEO William Biggar stated that "the temporary closure of the mine will allow us to conserve cash and focus on strategic initiatives that we believe will help enhance shareholder value over the long term, while we wait for metal prices to recover."
(c) The Canadian Press