Work out metal value per tonne instantly with clear inputs, formula shown and shareable results.
Net smelter return per tonne of ore is grade times metal price times recovery, less treatment, refining, penalty and freight charges. It is the revenue figure that mining and processing costs must be compared against, and it is typically 20-35% below the gross in-situ value.
Net smelter return
NSR = grade x metal price x recovery x (1 - treatment and freight deductions)
In-situ value ignores recovery losses and the substantial cost of turning concentrate into metal. Using it overstates revenue by a third or more and produces unrealistic cut-off grades.
Sum the net smelter return of each payable metal, then express the total as a single equivalent grade of the primary metal for planning and cut-off purposes.