Aurubis, Europe’s largest copper producer, has forecasted a decline in earnings for the upcoming financial year, attributing this to anticipated lower metal prices and challenges encountered during a production ramp-up that impacted its fourth-quarter results. Following this announcement, Aurubis shares dropped by 8%.
The company is facing inflated startup costs for strategic projects, particularly for a new recycling plant in Richmond, U.S. Additionally, the prolonged maintenance shutdown of its main Hamburg plant aimed at enhancing production and sustainability has led to delays. These technical challenges have adversely affected output, leading to lower-than-expected revenues from treatment and refining charges for concentrates, recycling materials, and sulfuric acid.
Aurubis now projects earnings before taxes (EBT) to be between 300-400 million euros ($333-445 million) for the 2024-2025 period, a decrease from the previously estimated 380-480 million euros for 2023-2024. Preliminary results indicate that EBT for the fourth quarter was 75 million euros, down from 92 million euros in the same period last year. The financial year for Aurubis concludes on September 30, with final results expected to be released on December 5.