The cost per ton fallicy Assume two diamond mines.
Each had a mining cost of $100 per ton.
Mine 1's grade was 3 carats per ton. = mining cost of $33 per carat.
Mine 2s grade was 1 carat per ton. = mining cost of $100 per carat.
Now change the data just a little:
Mine 2 has a mining cost of $70 per ton = mining cost of $70 per carat.
Those who think low cost per ton is what counts invest heavily in Mine 2.