Published by Global Banking and Finance Review
Posted on February 6, 2025
By Bernadette Hogg and Isabel Demetz
(Reuters) -Aurubis, Europe's largest copper producer, reported a first-quarter earnings beat on Thursday, pushed up by higher metal prices, robust copper product sales, as well as increased sulphuric acid revenue and lower costs.
In an interview with Reuters, CFO Steffen Hoffmann said Aurubis saw growing demand for sulphuric acid, used in fertilizers and the chemical industry, which could to some extent compensate for lower refining fees for copper concentrate.
Refining fees, a major source of revenue for smelters, are paid by miners when they sell concentrate, or semi-processed ore, to be refined into metal. Analysts expect the benchmark for refining fees in 2025 to be around $20 to $25 per tonne, significantly lower than the old benchmark of $80.
On the potential impact of U.S. tariffs, Hoffmann added that Aurubis' "strategic decision and the clear advantage of producing directly in the U.S. is even more valid."
Aurubis is building a second module at its new recycling plant in the U.S. state of Georgia, which should boost production of blister copper from 35 to 75 kilotonnes.
The Hamburg-based company recycles raw materials into products such as anodes, cathodes and wire rods, which are used for data centres linked to the artificial intelligence (AI) industry.
"It's almost certain that AI will further have a positive impact on the demand of our wire rod products," Hoffmann said.
Quarterly earnings before tax rose to 130 million euros ($135 million) in the first quarter through December, up 17% from a year earlier. That beat analysts' expectations of 126 million euros in a company-provided poll.
Aurubis also confirmed its outlook for the current fiscal year.
($1 = 0.9628 euros)
(Reporting by Bernadette Hogg and Isabel Demetz; Editing by Subhranshu Sahu, Gerry Doyle and David Evans)
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