A profitable mine produces diamonds with a value that is what in relation to operating costs?

When assessing the profitability of a diamond mine, it is essential to understand the relationship between the value of the diamonds produced and the operating costs of the mine. For a mine to be considered profitable, the total value of the diamonds extracted must exceed the costs involved in operating the mine. This includes expenses such as labor, equipment, maintenance, and extraction processes.

In this context, if the value of the diamonds produced is higher than operating costs, it indicates that the operation is generating more income than it is spending, thus allowing for profit margins to be realized. Such a situation ensures that the mine can sustain its operations and potentially invest in further development or expansion.

Choosing the answer that states the value of the diamonds is higher than operating costs captures this critical financial principle governing successful mine operations. It reflects the necessary condition for profitability and economic viability within the diamond mining industry.