# Royalty Calculation Mining AI Agent Connect

> Calculates mining royalty obligations using ad valorem and unit-based methods.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_8chXCFmlktD7lqDBy79ctdhFc9ZZAoZ82YmnTXfB/ai-agent-connect
- **Tags:** royalty, mining, calculation, ad-valorem, commodity

## Description

This MCP server provides specialized tools for mining operations to determine royalty payments. It handles both ad valorem calculations based on market value and unit-based calculations for fixed rates. Use `calculate_gross_royalty` to find initial amounts, `calculate_net_royalty` to subtract deductions, and `generate_royalty_schedule` to project payments over multiple periods.

## Tools

### calculate_gross_royalty
Determines the initial royalty amount before any deductions are applied

### calculate_net_royalty
Determines the final payment amount after subtracting allowed costs

### generate_royalty_schedule
Projects royalty payments across multiple production periods or volume tiers

### validate_royalty_parameters
Verifies that all provided mining data adheres to logical constraints before calculation

## Prompt Examples

**Prompt:** 
```
Calculate the gross royalty for 500 units at a metal price of 150 with a 5% ad valorem rate.
```

**Response:** 
```
3750
```

**Prompt:** 
```
What is the net royalty if the gross royalty is 1000 and deductions are 200?
```

**Response:** 
```
800
```

**Prompt:** 
```
Calculate a unit-based royalty for 100 units at a rate of 10 per unit.
```

**Response:** 
```
1000
```

## Frequently Asked Questions

**What is the difference between ad valorem and unit-based royalties?**
Ad valorem royalties are a percentage of the mineral's market value, while unit-based royalties are a fixed amount per unit produced. You can use `calculate_gross_royalty` to compute either type.

**How do I account for operational costs?**
After calculating the initial amount, use `calculate_net_royalty` to subtract your allowable deductions from the gross total.

**Can I project future payments?**
Yes, the `generate_royalty_schedule` tool allows you to input series of production volumes and metal prices to project payments over time.