Mining finance glossary

Mineral resource

A concentration of minerals with reasonable prospects for eventual economic extraction, classified as measured, indicated or inferred according to confidence in the geological evidence.

Mineral reserve

The economically mineable part of a measured or indicated resource, confirmed by at least a pre-feasibility study that accounts for mining, processing, economic and permitting factors.

JORC / NI 43-101

Reporting codes governing how mineral exploration results, resources and reserves are publicly disclosed in Australia and Canada respectively. Both require a named qualified or competent person.

Qualified person (QP)

A suitably credentialled professional who takes responsibility for the technical content of a resource or reserve statement.

Porphyry deposit

A large, low-to-medium grade copper deposit — often with gold or molybdenum credits — formed around an intrusive igneous body. Typically bulk-mined at scale.

Brine extraction

Recovery of lithium and other salts from subsurface brines, usually by evaporation or direct lithium extraction rather than hard-rock mining.

Pre-feasibility study (PFS)

An intermediate technical and economic study establishing whether a project is potentially viable and which development option to advance.

Definitive feasibility study (DFS)

The detailed engineering and economic study used to support a construction decision and project financing.

Cut-off grade

The minimum mineral concentration at which material can be mined and processed economically at assumed prices and costs.

All-in sustaining cost (AISC)

A per-unit cost measure covering operating costs plus the sustaining capital and overhead required to maintain production.

Net smelter return (NSR) royalty

A royalty paid on revenue from a mine after deducting smelting, refining and transport charges.

Streaming agreement

Upfront financing repaid through the right to buy a share of future production at a pre-agreed price.

Offtake agreement

A commitment from a buyer to purchase future production, often used to underpin project debt.

Social licence to operate

The ongoing acceptance of a project by local communities and stakeholders, distinct from legal permits.

Critical minerals

Minerals a government considers essential to economic or national security with supply chains at risk of disruption — commonly lithium, cobalt, nickel, graphite and rare earth elements.

Rare earth elements (REE)

Seventeen metallic elements used in magnets, defence systems and electrification, valued for magnetic and optical properties rather than scarcity in the crust.

These definitions are educational summaries, not legal or technical standards. Always refer to the governing reporting code and the project's own technical documentation.