Not sure if this has been discussed before, or if it even belongs in the Bug boards. Any magic leather item that you cut only yields 1 piece of leather. Example: One crafted leather tunic yields 6 pieces of leather when you cut it. One magic leather tunic yields 1 piece of leather when you cut it.
This was mentioned in IRC the other day, that there are issues with cutting up certain items. Additionally, I believe I have heard through the grapevine that there are issues with the # of resources you lose upon failing to create an item, which is causing people to lose more resources than they should. I think it's being worked on for the next patch, but for now it sounds like the best course of action is to only craft things you have 100% chance of success to make. And save those leather tunics of defense to be snipped another day
I hope this is working as intended. I don't think you should be able to collect ingots/leather from cutting/smelting magic armor/weapons that you loot. If this were the case I would hardly ever have to go mining for ingots; I could just smelt the throwaways I loot from farming.
Historically the amount of resources gained was based on the skill of the crafter as it pertains to the material type. For example GM crafters would get like %50-70 resource returns or something like that. The amount of ingots you could make from smelted magic items is negligible in relation to what you would get from mining for that amount of time.
I tested with a GM tailor and the results are the same. I would be fine with using my tailor to harvest the leather.
I should have clarified regarding history. The function is not presently configured this way here, yet. Perhaps in time and I'm fairly certain there's some work going into similar issues for smithing.
This is one of the issues we are working with currently. Currently there is no correct formula for unraveling or smelting goods. If it works at the moment you are provided with 50% of the base resources, regardless of if you have 1 skill or 100. And in some cases like this items will only provide 1 resource. Both the players skill in the related trade craft and the current condition of the item should be taken into account in these situations. The only situation in which no resources would be returned is when trying to cut up newbie items or death robes and the like. As for crafting failures, the same logic needs to be applied. Currently there is a static result to failing to craft and item, this should be converted to a small fraction of the resources required based on the difficulty of the item and your related crafting skill as well.