It's interesting how the current level of valuation compares...

It's interesting how the current level of valuation compares with where RIO was 10 years ago.

In 2002 iron ore was around $30 a tonne, RIO produced 100mt of it annually and its market cap was around $50 billion. No significant growth in productions on the horizon and China story was still largely unrecognised.

Now in 2012 iron ore is $150 a tonne, RIO is making 250mt of it annually, set to grow to 450mt in the next few years and its market cap is just double what it was in 2002, at $100 billion.

You have to think either RIO was significantly overvalued in 2002, or its very undervalued now. I am leaning towards the latter.