Fenix Resources (ASX:FEX) secured additional iron ore swap contracts and additional low-cost Australian dollar call options, extending its price protection hedging out to June 2027, with its current iron ore swap hedge book now comprising a total of 1.3 million tonnes hedged at an average price of AU$151.27 per tonne, according to a Monday Australian bourse filing.

The hedge book is structured as 100,000 tonnes per month from January to June at AU$151.33 per tonne, then 40,000 tonnes per month from July to December at AU$151.04 per tonne, and then 40,000 tonnes per month from January 2027 to June 2027 at AU$151.58 per tonne.

Its iron ore hedging arrangements consist of swap contracts between Fenix and Macquarie Bank, which are cash settled at the end of each month for an amount equivalent to the difference between the fixed price of the contracts and the relevant Platts iron ore benchmark index price converted to Australian dollars, per the filing.

It is targeting total iron ore sales for the financial year ending June 30 of between 4.2 million tonnes and 4.8 million tonnes at a C1 cash cost of between AU$70 per wet metric tonne and AU$80 per wet metric tonne at FOB Geraldton.

Its shares fell 2% in recent trading on Monday.