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Ore grade refers to the concentration of the mineral within the rock. Higher-grade ores are more economically viable to mine because they require less processing and energy costs per unit of metal produced.

CapEx refers to the funds used by a company to acquire, upgrade, and maintain physical assets such as mines. In mining, high CapEx is often required for exploration, developing new mines, or upgrading existing operations.

NPV is the sum of the present values of incoming and outgoing cash flows over a period of time. In mining, a positive NPV indicates that the projected earnings from a mine exceed the anticipated costs, justifying investment.

A feasibility study is a detailed analysis that assesses whether a mining project is economically viable. It includes a thorough evaluation of the ore body, infrastructure requirements, and financial analysis.

Reserve replacement involves finding new reserves to replace the ones that are depleted through mining. It's critical in mining to ensure the sustainability and longevity of a mining company.

OpEx encompasses the ongoing costs for running a mine. In mining, this includes labor, fuel, maintenance, and processing costs, which collectively affect the profit margins of mining operations.

Commodity prices are market determined values for raw materials. They heavily influence mining revenues and can fluctuate widely due to global supply and demand dynamics, geopolitical factors, and currency movements.

Cash flow is the net amount of cash being transferred in and out of a mining business. Positive cash flow ensures that a mining company has the funds for operations, expansion, and investment activities.

The cut-off grade is the minimum mineral grade at which a unit of ore will be economically mined. It plays a significant role in resource estimation and ultimately decides which material is ore versus waste.

Hedging in mining involves taking an offsetting position in a derivative market to reduce price risk. Companies do this to lock in prices for their commodities and stabilize revenue despite market fluctuations.

Supply and demand are fundamental economic concepts that dictate the price of minerals. In mining, understanding these concepts helps predict price volatility and informs production decisions.

Marginal cost is the additional cost of producing one more unit of output. In mining, it is critical for determining the economic feasibility of increasing production and can influence the decision to expand or cease operations.

Breakeven analysis identifies at what point a mining operation will become profitable by equating total revenues with total costs. This is crucial when assessing new projects and operational adjustments.

The life cycle of a mine includes the stages from exploration through discovery, development, production, and closure. Each phase has different economic implications and investment requirements.

Royalties are payments owed to landowners or governments for the right to extract mineral resources. In mining, they are often calculated based on a percentage of revenues or profits from the mined resources.

A concession is a right granted by a government to a mining company to explore for and extract specific minerals within a defined area. The terms of the concession can significantly impact the economic returns of a mining project.

AMD refers to the outflow of acidic water from metal or coal mines. It can create significant environmental costs and potential liabilities for mining companies, affecting the economic outcomes of mining operations.

Inflation is the rate at which the general level of prices for goods and services is rising. In mining, it affects operating costs, capital costs, and the value of money over time, impacting project viability.

Mineral reserves are the economically mineable part of a mineral resource. Quantifying reserves accurately is crucial for mine planning and determining the life span of mining operations.

Economies of scale describe the cost advantages gained by an increased level of production. In mining, larger operations typically have lower production costs per unit, which can make them more competitive.

The payback period is the time it takes for an investment to generate an amount of money equal to the cost of the investment. In mining, it is used to assess the risk and the time frame for the return on investment.

The discount rate is used in discounted cash flow analysis to determine the present value of future cash flows. For mining investments, it reflects the risk profile of the project and the time value of money.

Exploration costs are expenditures incurred in locating and assessing mineral deposits before a mine is developed. These costs are often high-risk but are necessary for expanding reserve bases.