Explanation of relevant opportunities
Rising global demand for copper and metals for technology
Copper is one of the most important metallic raw materials. Demand for copper is aligned with global economic growth, especially in the electrical, electronics, construction, and automotive industries. Global trends such as increasing energy scarcity, rising urbanization, the growth of the world’s middle class, digitalization, and electric vehicles will continue to not only increase copper demand in the long term, but also the demand for technology metals such as tellurium, nickel, platinum, and palladium. If the economy and the demand for our products develop more favorably than currently expected in the markets relevant for us, this could have a positive influence on the Aurubis Group’s earnings.
Positive trend in treatment and refining charges and market prices for our products
The Aurubis Group’s earnings situation is largely determined by the treatment and refining charges for copper concentrates, copper scrap, and recycling materials, as well as by the market prices for our products, such as sulfuric acid. If treatment and refining charges and market prices for our products develop more positively than currently forecast, this could positively impact the Aurubis Group’s earnings.
Increasing significance of sustainability and resource efficiency
Aurubis is the world’s leading recycler of copper and complex secondary raw materials. In light of the rising importance of resource efficiency with regard to sustainability, we expect demand for recycling solutions to continue growing. This is also supported and promoted by increasingly strict national and international legislation. Thanks to our multi-metal recycling activities and proximity to our copper product customers, we consider ourselves to be in a position to offer expanded closing-the-loop solutions. If national and international recycling regulations broaden and demand for recycling solutions in our markets grows more strongly than expected, this could positively affect the Aurubis Group’s procurement situation and therefore its earnings.
Further development of expertise in complex raw material processing
Both primary and secondary raw materials are becoming increasingly complex as their copper content falls and the concentrations of accompanying elements and impurities in them rise. One of Aurubis’ particular strengths already consists in processing complex primary and secondary raw materials. The FCM project contributes to achieving efficient and resource-friendly production processes for the raw materials of the future. If we build up additional expertise in this area, this could positively influence the Aurubis Group’s earnings.
Continuously improving processes and cost position and achieving synergies
Our markets are globally competitive. Operating excellence is therefore exceedingly important for us. We continuously work on optimizing our processes and improving our cost position. Furthermore, we are always identifying and implementing the synergy potential arising from our position along the value chain. If we go beyond the targets connected to initiated improvement measures, this could have a positive impact on the Aurubis Group’s earnings.
Capacity expansion linked with internationalization
We see additional growth potential in an expansion of our processing capacities in regions with favorable conditions and in proximity to our procurement and sales markets. We will continue investing in our existing sites but will also strive to expand our supplier and production networks further. If we are in a position to expand our capacities even more and, better still, do so with lower capital expenditure than expected, this could positively affect the Aurubis Group’s earnings.
Development of solutions for industrial customers and suppliers
We work closely with our suppliers and customers at all levels of our value chain. This includes developing products for individual customers, providing additional services, processing specific raw materials, and offering additional closing-the-loop solutions. If the demand of our customers and suppliers for our solutions is stronger than forecast, this could have a positive effect on the Aurubis Group’s earnings.
Innovations from future research and development activities
In the scope of our research and development activities, we work on innovations to create a competitive advantage for ourselves in the future. For example, we are currently working on making our processing methods more resource-efficient and on expanding our expertise in processing complex materials and extracting additional metals.