Key Highlights

  • Fenix closed out its Australian dollar iron ore swap hedge book covering 480,000 tonnes at an average A$151.31 a tonne for October 2026 to June 2027.
  • The company states the early settlement crystallises more than A$10 million, including about A$8.5 million expected during October 2026.
  • Diesel swaps over 13.5 million litres and a US$99 million currency hedge remain in place.

Fenix Resources Ltd (ASX:FEX), a Mid-West Western Australian iron ore producer, has closed out its Australian dollar iron ore swap contract hedge book. The company says it acted to take advantage of recent weakness in iron ore prices and that early settlement crystallises more than A$10 million in cash. The update was released on 23 October 2026.

The swap book covered 480,000 tonnes at an average price of A$151.31 a tonne for the period from October 2026 to June 2027. Fenix noted that the Platts 61 per cent CFR index averaged US$96.90 a tonne in the September quarter, which it puts at about A$137.22 a tonne.

The October 2026 swaps will settle on their existing contract terms in November 2026 and are currently valued by the company at about A$1.7 million. The swaps for November 2026 to June 2027 have been monetised immediately, realising about A$8.5 million, which Fenix expects to receive during October 2026. Together these account for the company's figure of more than A$10 million. The October component settles in the ordinary course, and the October valuation is an estimate rather than a settled figure.

Fenix says the move is consistent with its Price Protection Policy, which aims to secure positive Cash Flow while retaining positive exposure to spot iron ore prices. The announcement does not say how much unhedged exposure remains for the affected months.

The remaining hedge book

Fenix still holds diesel swaps over 13.5 million litres of Sing Gasoil 10ppm diesel for the 2027 financial year, priced between US$0.7383 and US$0.6874 a litre. The company says this covers about 30 per cent of its expected diesel use for FY27 and has a mark-to-market value of about A$5.6 million.

It also retains a currency hedge of US$99 million for October 2026 to June 2028, with an average exercise price of 0.7532 Australian dollars to the US dollar. These are call options that give Fenix the right, but not the obligation, to convert US dollars to Australian dollars at expiry, protecting Australian dollar Revenue from US dollar iron ore sales if the Australian dollar strengthens. Fenix values the position at about A$0.5 million on a mark-to-market basis. Independent hedging advice was provided by Noah's Rule.

Operating context

The announcement restates company background. Fenix Resources (ASX:FEX) says it currently produces more than five million tonnes of iron ore a year, with a stated pathway to ten million tonnes a year. Its operations include three Mid-West iron ore mines, Fenix Road Logistics and Fenix Port Logistics at Geraldton Port, which has 10 million tonnes a year of export capacity.

Its three-year production plan, announced on 11 December 2025, targets 15 million tonnes across FY26 to FY28, with production of up to 6.0 million tonnes by FY28. The company says the material assumptions behind that plan have not materially changed. The Weld Range scoping study, announced on 23 December 2025, supports expansion to ten million tonnes a year with C1 cash costs of about A$55 a wet metric tonne. Fenix targets a definitive feasibility study in the first half of calendar 2027 and expects a final Investment decision during 2028. These are company plans and targets, not completed milestones.

Upcoming dates

The October 2026 swaps settle in November 2026 and the monetised amount is expected to be received during October 2026. The company's remaining diesel and currency positions run to FY27 and June 2028 respectively, and the Weld Range feasibility study is targeted for the first half of 2027. The announcement was authorised by Fenix's executive chairman.