The company is on course to deliver strategic expansion projects in its international smelter network via growth options in multi-metal recycling and sustainability.

Europe’s leading copper producer and multi-metal recycler, Aurubis, has posted better returns over its last fiscal year. Operating earnings before tax rose to €413M (US$434M), compared to €349M (US$367M) in the prior year, although the latter was impacted by exceptional charges. Without fraud losses of €169M (US$178M), the FY2022/23 profit figure would have been €518M (US$545M). Commenting on the performance, the company’s new CEO, Dr Toralf Haag, stated, “Aurubis closed out the fiscal year with robust full-year results in a volatile market environment. It highlights our robust business model and proves that our metal portfolio is the key to the energy and mobility transition; we are enabling innovation and ongoing digitalisation.”  

The company’s raw material inputs and outputs fell slightly over the past fiscal year. The input of copper scrap and blister fell by 4.1% to 494kt from 515kt in the previous year, while the use of other recycled materials dipped by 3.9% to 545kt from 567kt a year earlier. Concentrate purchases also dropped slightly to 2,266kt from 2,319kt in FY2022/23. Copper cathode output eased by 1.5% to 1,092kt, down from 1,109kt a year earlier, while the production of copper wire rod rose by 0.5% to 880kt from 876kt in the prior year period.  

Aurubis attributed its improved profitability to several factors, including a slight rise in TC/RCs, a much stronger metal result, extra revenue from the Aurubis cathode premium, higher rod premiums, and lower energy costs. On the negative side, sulphuric acid prices fell, while income from refining charges for most recycled materials also decreased slightly. The company also encountered higher ramp-up costs at its strategic projects (Aurubis Richmond), causing a slight delay in the schedule to bring them onstream.  

So far, Aurubis has spent €859M (US$903M) of the €1.7Bn (US$1.8Bn) set aside for CAPEX in its many strategic projects. Of these, three are particularly significant. The first is the two-phase expansion of its new Aurubis Richmond secondary smelter in the USA, which will be able to treat 180ktpy of traditional and complex recycled raw materials when fully operational. The first phase is due to be commissioned in Q2 2025. The second is the Complex Recycling Hamburg project, which will boost the processing capacity of recycled materials and complex internal intermediate products by 30ktpy. Lastly, the third is the expansion of the refinery tankhouse capacity at the company’s Pirdop smelter in Bulgaria, which will be increased by 50% to 340ktpy. For FY2024/25, the company anticipates operating earnings before tax of between €300M (US$315M) and €400M (US$420M).  

Project Blue insight: Aurubis’ investments in the secondary smelting of simple and complex recycled raw materials distinguish it as the most progressive in the copper industry. Scrap and recycling are currently the most dynamic components of the market, and those with exposure identify this as an emerging source of major comparative advantage.