The 2007 iron ore crash has two factors involved. W Swann super mining tax which saw FMG go from $13.15 to $1.13 and BHP go from $54 to $20. Don't recall BHP getting as low as $12 from a $40 mark.
The other factor was over supply with to many new mines coming in and the iron ore price got as low as I think it was $38US/T. Atlas Iron went under and Gina brought the left overs. Atlas Iron went from $4.60 to 3c then went under.
Seeing the same play out with the junior lithium miners. They've dropped so low now that they may well go under too. SYA down to only a few cents and with prices this low they'll be losing money so they may well go under like many others in the same position. PLL also dropped way down and last I looked they were about 10c or so.
PLS still making good enough profits so they'll survive. When the juniors disappear the ore price will start to rise again.
Think longer term.
PLS Price at posting:
$3.69 Sentiment: Buy Disclosure: Held
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