Fenix Resources has locked in a further 60,000 tonnes in iron ore hedging contracts at a fixed price of $166.07 per tonne to take advantage of the strength in iron ore markets.
The new contracts are structured as 10,000 tonnes per month from January through to June 2024.
They add to the company’s existing iron ore hedge book comprising 330,000 tonnes structured as 60,000 tonnes per month until December 2023 at a fixed price of $170.10 per tonne and 35,000 tonnes per month from January to June 2024 at a fixed price of $166.07 per tonne.
Fenix’s iron ore hedging arrangements consist of swap contracts between Fenix and Macquarie Bank Ltd, which are cash settled at the end of each month.
The amount is equivalent to the difference between the fixed price of the contracts and the Monthly Average Platts TSI 62 Index converted into Australian dollars.
These hedging arrangements are consistent with the company’s price protection policy designed to support the medium-term profitability of production while maintaining a positive exposure to iron ore prices.