- Fenix Resources (FEX) extends iron ore swap arrangements for 50,000 tonnes per month up to and including September 2022 fixed at a price equivalent to $230.30 per dmt
- The previous agreement was 35,000 tonnes at a price equivalent of $180.65 per dmt
- Fenix said the swap arrangements are consistent with its price protection policy that supports its flagship Iron Ridge iron ore project in Western Australia
- FEX shares were up 3.23 per cent and trading at 32 cents each at 11:49 am AEST
Fenix Resources (FEX) has extend iron ore hedging cover to June 2023.
The company has entered into an iron ore swap arrangement for 35,000 dry metric tonnes (dmt) per month of the Monthly Average Platts TSI 62 Index converted to AUD for the nine-month period from October 2022 to June 2023.
The new agreement extends Fenix’s existing swap arrangements for 50,000
tonnes per month up to and including September 2022 fixed at a price equivalent to $230.30 per dmt.
Fenix said the swap arrangements are consistent with its price protection policy that supports its flagship Iron Ridge iron ore project in Western Australia.
The company started producing at Iron Ridge in December 2020 with first sales in February 2021.
Since then, around 1.5 million tonnes of premium ore have been exported to date.
“Fenix is a highly profitable iron ore producer focused on maintaining a strong margin throughout the iron ore price cycle,” Managing Director Rob Brierley said.
“Our hedging arrangements are sensible risk management which secure a solid margin on a base level of our production out to June 2023.”
Fenix Resources shares were up 3.23 per cent and trading at 32 cents each at 11:49 am AEST.