io price to share price ratio

In January of 2000 RIO was digging up approximately 60 million tonnes of iron ore per year and selling it all for the princely sum $12.45 per tonne and RIOs price was $33 dollars per share.

So fast forward to 2012, RIO is producing more than 250 million tonnes or iron ore per year, a 400% increase on the year 2000, the current spot price is about 800% higher than it was in 2000 but the share price is only an paltry 50% higher. So which share price reflects reality? The share price in 2000 or 2012? And if it was then, what is going on today? Several months ago when the price of iron ore hit $187 RIOs share price was only in the 80 dollar range. In reality, it probably should have been upwards of $140 per share as some brokers predicted. So what has kept it so low?

Remember investors, we are in charge of the share price. Not the hedge funds, not the press and not the Chinese. But as long as we remain afraid and negative, our fear will translate into a low share price. Investors need to spend less time cleaning the poop out of their pants every time they hear a gloomy news story and more time realising that we have experienced magnificent growth over the past decade and we are going to continue to grow!

Apologies for what may appear to some to be a rant but I have simply grown so tired of seeing this country's wealth (and my own) being negatively impacted by the price of souvlaki in Greece, the price of beachfront residence in Portugal, the unemployment rate in Spain, Germany's attitude toward the Euro, US political ineptitude and speculative guesses on where the Chinese really are economically. Enough is enough already! Let's deal with REALITY!