Explanation of relevant opportunities

Rising global demand for copper and copper products

Copper is one of the most important metallic raw materials. Demand for copper is aligned with world economic growth, especially in the electrical, electronics, construction and automotive industries. Global trends such as increasing energy scarcity, rising urbanization, electric cars and the growth of the world’s middle class will continue to drive copper demand upwards. If the economy and the demand for our copper products develop more favorably than currently expected in the markets relevant to 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 will be largely determined by the treatment and refining charges for copper concentrates, copper scrap and recycling materials, and by the market prices for our products, such as sulfuric acid. If treatment and refining charges and market prices for our products develop more favorably than currently forecast, this could positively impact the Aurubis Group’s earnings.

Increasing significance of sustainability and resource efficiency

Aurubis is a leading global copper recycler. In light of the rising importance of resource efficiency and sustainability, we expect demand for recycling solutions to continue growing. This is also supported and promoted by national and international law. Thanks to our recycling activities and proximity to our copper product customers, we consider ourselves to be in a position to offer expanded solutions for closed recycling systems. If national and international recycling regulations become stricter, and if demand for recycling solutions in our markets increases more strongly than expected, this could positively affect the Aurubis Group’s procurement situation and therefore its earnings.

Development of expertise in processing complex raw materials

Primary and secondary raw materials are becoming more complex, insofar as their contents of copper are decreasing and their concentrations of by-elements and impurities are increasing. One of Aurubis’ strengths is in processing complex materials, e. g. electronic scrap. Aurubis is continuously developing this expertise to devise effective and resource-efficient processing methods for the raw materials of the future in the FCM (Future Complex Metallurgy) project. If even more progress is achieved in developing our skills than currently forecast, this could positively influence the Aurubis Group’s earnings.

Continuous improvement of processes and cost position and achievement of synergies

Our markets are globally competitive. Operating excellence is therefore exceedingly important. 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 copper value chain. If we exceed the targets relating to initiated improvement measures, this could have a positive impact on the Aurubis Group’s earnings.

Capacity expansion linked with internationalization

We see growth potential in the expansion of our processing capacities in regions that have favorable conditions and are in proximity to our procurement and sales markets. We will continue investing in our existing sites, but will also strive to further expand our production network. If we are in a position to expand our capacities even more and/or with lower capital expenditure than expected, this could positively affect the Aurubis Group’s earnings.

Developing solutions for customers and suppliers

We work closely with our suppliers and customers at all levels of our value chain. This includes developing individual customer products, providing extra services, processing specific raw materials and offering additional closed recycling solutions. If demand from 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 that create a competitive advantage for us in the future. For example, we’re working on making our processing methods more resource-efficient, and on expanding our expertise in complex material processing.

For example, we have initiated a project in the Hamburg primary smelter (MSO, Metallurgical Slag Optimization), the goal of which is to reduce the unwanted elements in iron silicate with an additional processing step. Furthermore, we want to achieve broader flexibility on the sales market by expanding our iron silicate granulation capacities.

Our activities in the product sector focus on developing production technologies to reduce throughput times, and on the technical implementation of recycling solutions for our customers, for instance. If there is more progress in our research and development activities than currently expected, this could positively impact the Aurubis Group’s earnings.