What's Happening?
Fenix Resources has expanded its hedge book by securing contracts for an additional 300,000 tonnes of iron ore between October 2025 and June 2026. This brings the total hedged volume to 720,000 tonnes at an average price of A$153.18 per tonne. The Perth-based miner's strategy aims to ensure a positive cash-flow margin while maintaining exposure to spot prices. Fenix has projected iron-ore sales of 4 to 4.4 million tonnes for the 2026 financial year, with cash costs estimated at A$70 to A$80 per tonne.
Why It's Important?
The hedging strategy is vital for Fenix Resources to manage price volatility and secure financial stability. By locking in prices, the company can protect its revenue against market fluctuations, ensuring consistent cash flow. This approach supports operational planning and investment decisions, potentially enhancing shareholder value. The strategy also reflects broader industry practices as miners seek to mitigate risks associated with commodity price swings.
