Fenix Resources (ASX:FEX) adds to iron ore hedge book

• Fenix Resources (FEX) establishes new iron ore hedging contracts to secure stable sales volumes for the coming months
• The company adds 10,000 dmt per month from July to December 2023
• Fenix now has contracts for a total of 50,000 dmt per month at $170 per tonne to December 2023
• The hedging strategy aligns with Fenix’s price protection policy to safeguard profitability and maintain exposure to iron ore prices
• Fenix Resources was last trading at 28 cents

Fenix Resources (FEX) has established new iron ore hedging contracts, securing stable sales volumes for the coming months.

The company announced it added a further 10,000 dry metric tonnes (dmt) of iron ore per month from July to December 2023.

These new contracts complement Fenix’s existing hedging arrangements, resulting in a total of 50,000 dmt per month to December 2023.

The fixed price for these contracts has been set at $170.10 per dmt.

This strategic approach aims to safeguard the medium-term profitability of the company’s production activities while maintaining positive exposure to iron ore prices.

Earlier this week, the company entered into a binding agreement with Mount Gibson Iron to acquire its Mid-West iron ore and port assets.

This comes after the company achieved a significant sales milestone of three million dmt of high-grade iron ore from Fenix’s Iron Ridge mine in WA’s Mid-West.

Fenix Resources was last trading at 28 cents.