Your assay settlement report shows how your catalytic converters turn into metals, then into dollars.
Follow this Cat Value Triangle method to see your catalytic converter payout clearly.
Here is a sample final that you should expect to receive from your processor.
Read it in this order:
- Quantity × Quality = Total Contained Ounces
- Apply Contracted Return Rates = Total Returned Ounces
- Apply Pricing (Hedge or Market) = Total Metal Value
- Subtract Treatment Charges and Any Advance = Final Payment
Step 1: Find Quantity and Quality for Total Contained Ounces in the Assay Settlement
The first step in the Cat Value Triangle is Quantity × Quality. It shows how many ounces of metal are in your lot.
- Quantity is the net dry weight of usable ceramic.
- Quality is PPM for platinum (Pt), palladium (Pd), and rhodium (Rh).
Look on your assay settlement for PPMs for each metal.
Calculation
Net dry weight × PPM (Pt) = Contained Pt ounces
Net dry weight × PPM (Pd) = Contained Pd ounces
Net dry weight × PPM (Rh) = Contained Rh ounces
Quick check:
- Do you see net dry weight?
- Do you see PPM for Pt, Pd, and Rh?
- Do you see contained ounces of each metal?
If yes, you have completed Step 1.
Step 2: Apply Contracted Return Rates to Get Returned Ounces
No program pays 100 percent. Your contract sets return rates that reflect real refining costs.
RAS Cats standard starting terms: 92% platinum, 92% palladium, 90% rhodium.
Use the contained ounces from Step 1 and multiply by your contract rate to get returned ounces. These are the ounces that count toward your supplier total metal value.
Calculation
Contained Pt ounces × 91% = Returned Pt ounces Contained Pd ounces × 91% = Returned Pd ounces Contained Rh ounces × 90% = Returned Rh ounces
Step 3: Apply Price for Total Metal Value in your Assay Settlement
Take returned ounces and multiply by each metal’s price. Your report will show market price or hedge price for Pt, Pd, and Rh.
This converts metal into U.S. dollars and gives your Total Metal Value for your catalytic converter settlement.
Calculation
Returned Pt ounces × Pt price = Pt metal value
Returned Pd ounces × Pd price = Pd metal value
Returned Rh ounces × Rh price = Rh metal value
Total Metal Value = Pt + Pd + Rh
Step 4: Subtract Charges and Any Advance for Final Payment
Review your treatment charges and any advance payment.
Subtract those from Total Metal Value to get your final payment on the assay settlement report.
Calculation
Total Metal Value – Charges – Advance Payment = Final Payment
Assay Settlement Quick Review Checklist
- Quantity and Quality found: net dry weight, PPMs, contained ounces
- Contract terms: 91% Pt, 91% Pd, 90% Rh
- Prices applied: hedge or market
- Supplier Total Metal Value calculated
- Treatment charges and advance deducted
- Final payment matches your deposit
What’s Next
You now know how to read a catalytic converter assay settlement using the Cat Value Triangle and your return rates.
Next, learn how cash flow works in How to Read an Assay Advance and see how advances affect your total return.
