Minerals and iron ore player Strike Resources has told shareholders that the turmoil and volatility in world financial markets has cut the company's market capitalisation to $48 million, which is below its cash position of about $72 million.

Shares in the company have fallen 82 per cent since May, when it was trading at $2.81. The stock is now trading around 50¢ after bouncing off the 29-month low of 34.5¢ on October 23. This was the lowest level since Strike traded at 33.5¢ on May 18, 2006.