# Cut-Off Grade Optimization AI Agent Connect

> Optimize mining cut-off grades to maximize NPV and production efficiency.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_CUNQSGd7L6qjAwQ6z6vHRgYb2POsLklb73VkSpPo/ai-agent-connect
- **Tags:** mining, npv, economics, production, optimization

## Description

This MCP server provides specialized tools for mining engineers and financial analysts to optimize ore classification. By using `optimize_cut_off_grade`, users can identify the specific grade that maximizes Net Present Value (NPV) while accounting for opportunity costs. The server also includes `calculate_break_even_grade` to determine minimum profitable thresholds, `simulate_production_schedule` to project annual cash flows and mine life, and `evaluate_stockpile_viability` to decide if low-grade material should be stockpiled or discarded. It serves as a bridge between complex mining economic models and AI agents.

## Tools

### simulate_production_schedule
Projects the sequence of mining and processing activities over time based on a chosen grade

### calculate_break_even_grade
Determines the minimum grade required to cover all incremental costs of processing

### evaluate_stockpile_viability
Determines if diverted low-grade material should be stockpiled or sent to waste

### optimize_cut_off_grade
Identifies the specific grade that maximizes the Net Present Value of the operation

## Prompt Examples

**Prompt:** 
```
What is the optimal cut-off grade for a gold mine with a metal price of 2000, recovery of 0.9, mining cost of 50, processing cost of 30, dilution of 0.05, and opportunity cost of 10?
```

**Response:** 
```
The optimal cut-off grade for this operation is 0.15.
```

**Prompt:** 
```
Calculate the break-even grade if the metal price is 1500, recovery is 0.85, mining cost is 40, processing cost is 25, and dilution is 0.1?
```

**Response:** 
```
The break-even grade is 0.12.
```

**Prompt:** 
```
Should I stockpile material with a grade of 0.05 if the metal price is 1800, recovery is 0.8, processing cost is 20, storage cost is 2, and dilution is 0.05?
```

**Response:** 
```
The action is stockpile.
```

## Frequently Asked Questions

**How does this tool help maximize NPV?**
It uses `optimize_cut_off_grade` to find the ideal balance between immediate high-grade production and long-term mine value, accounting for opportunity costs.

**Can I simulate my mine's production over time?**
Yes, the `simulate_production_schedule` tool allows you to project annual ore tonnage, metal production, and cash flow based on your chosen cut-off grade.

**What is the difference between break-even and optimal grade?**
The break-even grade, found via `calculate_break_even_grade`, is the minimum to cover costs. The optimal grade is typically higher as it accounts for the opportunity cost of delaying future cash flows.