SMALL CUT-OFF CHANGES CAN DESTROY PROJECT ECONOMICS In mining, value is not created by maximizing tonnage. Value is created by finding the right cut-off. A small adjustment in cut-off grade may look insignificant on paper — but in reality, it can completely change: • Ore tonnage • Strip ratio • Revenue generation • Processing cost • Cash flow • NPV and project viability Lower cut-off grades may increase tonnage, but often bring more waste movement, higher processing cost, and lower average grade. Higher cut-off grades may improve grade quality, but risk leaving economic metal behind. This is why cut-off grade should never be selected arbitrarily. A proper cut-off decision requires understanding: ✔ Economic cut-off calculation ✔ Revenue vs stripping balance ✔ Sensitivity scenarios ✔ Mining constraints ✔ Recovery assumptions ✔ Geological confidence The objective is not to mine more. The objective is to extract the maximum economic value with acceptable risk. Because sometimes… "a 0.1–0.3 change in cut-off can create millions in value — or destroy them". Run sensitivity. Challenge assumptions. Choose value, not volume. Right cut-off → Relevant economics → Maximum return. #CutOffGrade #ReserveEstimation #MiningEconomics #MinePlanning #OreReserve #ResourceModeling #Mining #Geology #Geometallurgy #MiningEngineering #EconomicGeology #NPV #MineOptimization #NickelMining #Zvenia