Fresh Thinking by Snowden Optiro11 Jun 2025

Ep 114: The Cutoff Grade Strategy That Can Boost Your NPV by 20%

In this episode of Fresh Thinking, Senior Mining Consultant Pedro Ladeira sits down with Snowden Optiro General Manager Tarrant Elkington to explore the real value behind variable cutoff grades in mine planning. From NPV optimisation to stockpiling strategies and the practical challenges of implementation, this conversation is packed with insights that can help elevate your project's performance.

Whether you're planning an open pit or underground mine, this episode unpacks how dynamic cutoff strategies can unlock significant long-term value - sometimes increasing NPV by 20% or more.

Key Moments:

0:34 – What is a marginal vs. optimised cutoff grade?
1:57 – Why higher cutoffs can increase NPV
3:59 – Open pit vs. underground implications
6:02 – The role of opportunity cost and processing constraints
8:46 – Costs and downsides of elevating cutoff grades
12:14 – Life-of-mine length and its influence on optimisation
16:03 – Stockpiling as a strategic asset
19:04 – Real-world impact: 20% NPV uplift
20:26 – Operational challenges and practical implementation

Takeaway: Cutoff grade optimisation isn't just a technical tweak - it's a powerful lever for mine value that deserves more attention in strategic planning.

If you would like to contact Tarrant and Pedro: contact(at)snowdenoptiro.com

Don't forget to SUBSCRIBE for more straight-talking episodes from the world of mining and geology.

Fresh Thinking by Snowden Optiro is available on YouTube, Spotify, Apple Podcasts, Amazon Music, Libsyn and all your favourite platforms.

Snowden Optiro is a resources consulting and advisory group that provides independent advice, consulting and training to mining and exploration companies, their advisors and investors.

We help mine developers to advance their projects, mining companies to improve their operations and their professionals, and investors to de-risk their investments by the provision of quality advice, training and software in the field of Mineral Resources and Mineral/Ore Reserves.

Find out more at: https://snowdenoptiro.com/ Professional Development Training: https://snowdenoptiro.com/professional-development/

Denne episoden er hentet fra en åpen RSS-feed og er ikke publisert av Podme. Den kan derfor inneholde annonser.

Episoder(169)

EP 170 | Part 1 of 2: Why the Most Expensive Mistake in Grade Control Isn't Low Grade

What if the most expensive mistake in grade control isn't mining low-grade material — but making the wrong decision about what is ore and what is waste? In this two-part episode of Fresh Thinking by S...

12 Aug 4min

EP 169 | Why Good Estimates Can Still Produce Poor Reconciliation

If your resource model is statistically robust, why doesn't it always reconcile with production? In this episode of Fresh Thinking by Snowden Optiro, Melanie Bulley and Senzeni Mandava Matondi explore...

6 Aug 6min

EP 168 | When Geology Isn't Enough - Using Categorical Indicator Kriging to Model Diffuse Mineralisation

How do you model mineralisation when geological boundaries aren't clearly defined? In this episode of Fresh Thinking by @SnowdenOptiro , Senior Consultant, Melanie Bulley is joined by Principal Cons...

29 Jul 8min

EP 166 | What Consultants See That Mine Sites Miss: Lessons in Mine-to-Mill Reconciliation

What do consultants see that mine sites often miss? In this episode of Fresh Thinking bySnowden Optiro, Rayleen Hargreaves is joined by Ian Glacken to discuss the most common mine-to-mill reconciliati...

1 Jul 11min

EP 164 | Critical vs Strategic Minerals: Which Commodities Matter Most?

Which commodities matter most in the global race for critical and strategic minerals? In this episode of @SnowdenOptiro Fresh Thinking podcast, Senzeni Mandava Matondi is joined by Julian Aldridge a...

29 Mai 5min

EP 163 | Critical vs Strategic Minerals: What's the Difference?

What makes a mineral critical? What makes it strategic? And why are governments around the world racing to secure supplies of certain commodities? In this episode of Fresh Thinking by Snowden Optiro ,...

29 Mai 10min

EP 162 | AI in Mining: Tool or Threat to Geologists?

Will AI replace geologists? In this episode of Fresh Thinking by @SnowdenOptiro , we explore how artificial intelligence is being used across the mining industry, from exploration targeting and core ...

29 Mai 22min

EP 161 | Private vs Public Mining Companies: CRIRSCO Compliance Explained

What are the key differences between private mining companies and publicly listed mining companies when it comes to project development, risk, and reporting? In this episode of ‪@SnowdenOptiro‬ 's Fre...

28 Mai 13min