Fenix Resources (ASX:FEX) has extended its iron ore price protection program through to June 2027, securing additional swap contracts and low-cost Australian dollar call options.
The company now has 1.32 million tonnes hedged at an average price of $151/t, with hedges structured monthly from January 2026 to June 2027.
Fenix has also expanded its currency hedge book, holding US$105 million in Australian dollar call options through to June 2027 at an average exercise price of AUD:USD 0.7283, providing protection against a stronger Australian dollar while allowing upside exposure if the currency weakens.
The hedging strategy aligns with the company’s price protection policy, ensuring positive cash flow margins on base production while retaining exposure to spot iron ore prices.
Fenix targets FY26 iron ore sales of 4.2–4.8 million tonnes at a C1 cash cost of $70–80/wmt, assuming an iron ore price of US$90/t and AUD:USD of 0.67.
The company’s 3-year production plan anticipates total production of 15 million tonnes across FY26–28, with the potential to reach 6 million tonnes annually by FY28.
Meanwhile, the Weld Range scoping study highlights a pathway to expand output to 10Mtpa and reduce C1 costs to ~$55/wmt, with a definitive feasibility study due by June 2026.