Australia’s small resources companies index is trading at levels below those during the depths of the global financial crisis, despite a stronger than expected iron ore price and positive returns from the larger resources companies.

Lower commodity prices, project financing issues and uncertain demand from China for raw materials helped drag the Australian Securities Exchange Small Resources Index down 41 per cent in the past year to 2209, marginally lower than where the index fell in November 2008 when the market dived during the United States subprime debt crisis.