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The Poseidon bubble was a stock market bubble in which the price of Australian mining shares soared in late 1969, then crashed in early 1970. It was triggered by the Poseidon NL company's discovery of a promising site for nickel mining in September 1969. In the late 1960s, nickel was in high demand due to the Vietnam War,[1] but there was a shortage of supply due to industrial action against the major Canadian supplier Inco. These factors pushed the price of nickel to record levels, peaking at around £7,000/ton on the London
London
market early in November 1969.[2] In September 1969, the mining company Poseidon NL made a major nickel discovery at Windarra in the Shire of Laverton, Western Australia. In early September their shares had been trading at $0.80, but as information about the discovery was released, the price rose until it was trading at $12.30 on October 1. After this, very little further information came to light, but the price continued to climb due to speculation; at one point, a UK broker suggested a value of up to $382 a share. The price of Poseidon shares quickly became too high for many investors, so some turned to other nickel stocks, stocks in other mines near Windarra, and eventually other mining stocks in general. As the price of mining shares grew, new companies were listed by promoters looking to cash in. Mining
Mining
stocks peaked in January 1970, then immediately crashed. Poseidon shares peaked at an intraday high of $280 in February 1970, and fell rapidly thereafter. By the time Poseidon actually started producing nickel, the price of nickel had fallen. Also, the nickel ore was of a lower grade than originally thought, so extraction costs were higher. Profits from the mine were not sufficient to keep Poseidon afloat, and in 1976 it delisted. Western Mining
Mining
then took over the mine, operating it until 1991. In 1974, The Rae Committee handed down its report on the Poseidon bubble, in which it documented numerous cases of improper trade practices. It recommended a number of changes to the regulation of stock markets, which ultimately led to Australia's national companies and securities legislation.[3][4] In the late 1980s, Robert Champion de Crespigny took over the Poseidon Company and it became part of Normandy Mining, the largest gold miner in Australia. In 2001 Normandy Mining, including Poseidon, was taken over by the Newmont Mining
Mining
Corporation, which also at that time acquired Canadian company Franco-Nevada. The acquisitions made Newmont the world's largest producer of gold at that time.[5] References[edit]

^ http://www.businessinsider.com/most-ridiculous-bubbles-ever-2010#the-vietnam-war-induced-poseidon-bubble-10 ^ "Three Australian Asset-price Bubbles" (PDF). The Reserve Bank of Australia. 2003-08-19. Retrieved 2007-06-04.  ^ Australia. Parliament. Senate. Select Committee on Securities and Exchange; Rae, P. E. (Peter Elliot), 1932- (1974), Australian securities markets and their regulation, Australian Government Publishing Service, ISBN 978-0-642-00638-7 CS1 maint: Multiple names: authors list (link) ^ Australia. Parliament. Senate. Select Committee on Securities and Exchange (1974), Australian securities markets and their regulation. 3 vols, A.G.P.S, retrieved 23 April 2012  ^ "Our History". Newmont Mining
Mining
Corporation. 2010. Archived from the original on 26 November 2010. Retrieved 20 November 2010. 

Further reading[edit]

Weekend News Saturday January 10, 1970 - p. 10 -W.A. Shareholders in Poseidon and Poseidon slip $24.66 in London Adamson, Graeme.(1989) Miners and millionaires : the first one hundred years of the people, markets and companies of the stock exchange in Perth, 1889-1989 Perth, W.A : Australian Stock Exchange(Perth) Limited. ISBN 1-875262-00-8

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Business in Australia

Institutions

Australian Competition & Consumer Commission Australian corporate law Australian Prudential Regulation Authority Australian Securities & Investments Commission Australian Takeovers Panel Constitution of Australia, 1901 (Cth) corporations power Economy of Australia

Stock
Stock
exchange

Australian Securities Exchange S&P/ASX 20 S&P/ASX 50 S&P/ASX 200 S&P/ASX 300

Business associations

Australian Chamber of Commerce and Industry Australian Hotels Association Australian Industry Group Business Council of Australia Minerals Council of Australia National Farmers' Federation

S&P/ASX 50 companies (alpha–sorted)

AGL Energy Amcor AMP APA Asciano Aurizon ANZ ASX BHP Brambles Caltex
Caltex
Australia Coca-Cola Amatil Commonwealth Bank Computershare Crown CSL Dexus Goodman GPT Incitec Pivot IAG James Hardie Lendlease Macquarie Group Medibank Mirvac National Australia
Australia
Bank Newcrest Mining Oil Search Orica Origin Energy QBE Insurance Ramsay Health Care Rio Tinto Santos Scentre Seek Limited Sonic Healthcare South32 Stockland Suncorp Sydney Airport Holdings Telstra Transurban Vicinity Centres Wesfarmers Westfield Westpac Woodside Petroleum Woolworths

Other notable companies

Adelaide Bank Akubra Alumina Australian Radio Network Australian Broadcasting Corporation AXA Asia Pacific Bendigo Bank BlueScope Bunnings Caltex CIMIC Citibank Cochlear Coles Downer Group Fairfax Media Fosters Harvey Norman Holden James Hardie JB Hi-Fi Jetstar Airways John Holland Macquarie Radio Manildra Group Metcash National Storage News Corp Australia Nine Entertainment/Nine Network Optus Qantas Qube Holdings RM Williams Seven West Media/Seven Network Southern Cross Austereo St George Bank Star Entertainment Group Vero Insurance Virgin Australia Zinifex

Corporate controversies and collapses

Adelaide Steamship Company Ansett Australia Bridgecorp Holdings Camperdown Dairy International Dick Smith Holdings Firepower International Great Southern Group James Hardie
James Hardie
asbestos controversy Rodney Adler, Brad Cooper, Ray Williams and the collapse of HIH Insurance King Brothers Masters Home Improvement Network Ten Opes Prime Pasminco Poseidon bubble Price fixing in the packaging industry Rene Rivkin and the Offset Alpine fire Jodee Rich
Jodee Rich
and One.Tel Christopher Skase and Qintex Storm Financial Timbercorp WA Inc Wayne Mansfield Westpoint

Notable individuals

Peter Abeles Warren Anderson Reg Ansett Alan Bond Chris Corrigan Robert Champion de Crespigny Rod Eddington John Elliott Andrew Forrest David Gonski Joseph Gutnick Lang Hancock Janet Holmes à Court Robert Holmes à Court Margaret Jackson Mike Cannon-Brookes Gail Kelly Solomon Lew Frank Lowy David Morgan Hugh Morgan Lachlan Murdoch Rupert Murdoch Sidney Myer Scott Farquhar Jacques Nasser Frank Packer James Packer Kerry Packer Clive Palmer Arvi Parbo Gina Rinehart Dick Smith Kerry Stokes Ziggy Switkowski Harry Triguboff Malcolm Turnbull Solomon Trujillo Nicholas Whitlam

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Mining
Mining
companies of Australia

Adelaide Brighton Cement Allegiance Mining Alumina Aquarius Platinum Atlas Iron BHP Bougainville Copper Compass Resources Copper Mines of Tasmania Electrolytic Zinc Energy Resources of Australia Fortescue Metals Group GRD Hancock Prospecting Iluka Resources International Ferro Metals Laguna Resources Macarthur Coal Macmahon Holdings Magellan Metals Marathon Resources Marston Minara Resources Mineralogy Minerals and Metals Group Mount Lyell Mining
Mining
and Railway Company New Hope Coal Newcrest Mining North Limited Orocobre OZ Minerals Paladin Energy Pasminco Pilbara Iron QCoal Rio Tinto Aluminium Rio Tinto Group South32 Tiwest Joint Venture Zinifex

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Economic bubbles

1600s

Tulip mania

1700s

South Sea Company Mississippi Company Canal Mania

1800s

Railway Mania Encilhamento
Encilhamento
("Mounting")

1900s

Florida land boom of the 1920s Roaring Twenties
Roaring Twenties
stock-market bubble Poseidon bubble Japanese asset price bubble 1997 Asian financial crisis Dot-com bubble

2000s

Chinese stock bubble of 2007 Uranium bubble of 2007

Real estate bubbles

Australian property bubble Bulgarian property bubble Chinese property bubble (2005–11) Danish property bubble of 2000s Indian property bubble Irish property bubble Lebanese housing bubble Polish property bubble Romanian property bubble Spanish property bubble United States housing bubble

causes

Hypothetical bubbles

Carbon bubble Chaotic bubble US higher education bubble Social media bubble Cryptocurrency bubble

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