Fenix Resources (ASX:FEX) has established new iron ore hedging contracts for a total of 10,000 dry metric tonnes (dmt) or iron ore per month from July to December 2023.
The company says the new contracts have been added to its existing iron ore hedging arrangements such that a total of 50,000 dmt per month is hedged from July to December 2023 at a fixed price of $170.10 per dmt.
These iron ore swap arrangements comprise contracts between Fenix and Macquarie Bank, which are cash-settled at the end of each month for an amount equivalent to the difference between the fixed price of the contracts and the Monthly Average Platts TSI 62 Index converted to AUD.
Fenix adds its swap arrangements are consistent with its price protection policy, which is designed to support the medium-term profitability of production while maintaining positive exposure to iron ore prices.
Fenix Resources is an iron ore producer with assets in the midwest mining region of Western Australia. The company’s wholly owned flagship Iron Ridge Iron Ore Mine is a premium direct shipping ore (DSO) deposit located about 360km northeast of Geraldton in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Fenix Resources Ltd