Fenix Resources Locks In FY27 Diesel Costs and Extends In-the-Money Hedge Book

Fenix Resources Limited ( (AU:FEX) ) has provided an update.

Fenix Resources has expanded its hedging program by locking in diesel fuel swap contracts covering about 30% of its expected FY27 diesel needs, equivalent to 18 million litres of Sing Gasoil 10ppm at prices between US$0.6874 and US$0.7876 per litre, implying an estimated A$1.70–A$1.85 per litre terminal gate price before excise rebates. The company also maintains a substantial in-the-money iron ore hedge book of 1.12 million tonnes at an average A$151.26 per tonne and AUD call options over US$141 million through June 2028, together providing margin protection, cash flow visibility and partial insulation from commodity and currency volatility for shareholders and other stakeholders.

These hedges are structured as swap and option contracts with Macquarie Bank, settled monthly against relevant Platts benchmarks and FX rates, aligning with Fenix’s price protection policy. The updated hedge positions underscore a disciplined risk management approach that locks in profitable levels on a base production and fuel cost profile while preserving upside to favourable spot movements in iron ore and the Australian dollar.

The most recent analyst rating on (AU:FEX) stock is a Hold with a A$0.35 price target. To see the full list of analyst forecasts on Fenix Resources Limited stock, see the AU:FEX Stock Forecast page.

More about Fenix Resources Limited

Fenix Resources Ltd is an Australian iron ore producer focused on high-grade ore sales, backed by an active commodity and currency hedging strategy. The company manages exposure to iron ore prices, diesel fuel costs and AUD/USD movements to secure margins and provide cash flow certainty for its operations.

YTD Price Performance: -37.11%

Average Trading Volume: 1,334,291

Technical Sentiment Signal: Hold

Current Market Cap: A$233.3M

See more data about FEX stock on TipRanks’ Stock Analysis page.