In This Article:
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Aurubis AG (AIAGF) reported a robust operating EBT of 130 million, marking a 17.5% increase compared to the previous year.
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The company achieved a significant improvement in net cash flow, reaching 178 million, well above the previous year's negative figure.
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Aurubis AG (AIAGF) maintained a strong equity ratio of 54.7%, indicating a healthy balance sheet.
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The company has successfully implemented around 25% of the 400 identified plant security measures, with additional measures planned for 2025.
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Aurubis AG (AIAGF) has a well-diversified supplier base with long-term contracts, ensuring stable material supply for its operations.
Negative Points
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Aurubis AG (AIAGF) anticipates a slightly lower earnings situation from recycling materials for the remainder of fiscal year 2025.
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The company faces increased personnel costs due to wage and salary increases linked to collective wage agreements.
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Aurubis AG (AIAGF) reported decreased concentrate throughput with lower treatment and refining charges.
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The company expects startup losses of around 50 million for the Richmond project in the current fiscal year.
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Aurubis AG (AIAGF) anticipates a negative impact of 34 million EBT due to a maintenance shutdown in Pirdop in May-June 2025.
Q & A Highlights
Q: Can you quantify the positive contribution from sulfuric acid in the first quarter? A: Stefan Hoffman, CFO: The quarterly impact of sulfuric acid is a double-digit million EUR figure, more in the lower vicinity. We expect this trend to continue in the coming quarters, making it a strong supportive lever for earnings.
Q: What is the outlook for the recycling market and its impact on earnings? A: Stefan Hoffman, CFO: The recycling market is short-term and influenced by factors like metal prices and Chinese imports. While refining charges are under pressure, our robust business model and long-term contracts help mitigate risks. Sulfuric acid revenue streams provide an upside that can counteract these pressures.
Q: How well supplied is the recycling network for the current fiscal year? A: Tore Park, CEO: We are well supplied into the second quarter of this year. Despite some tightening of TCRC, we are cautiously optimistic about maintaining a good supply for the remaining quarters, Q3 and Q4.
Q: What is the expected timeline for Richmond to reach break-even? A: Tore Park, CEO: We expect startup losses of around EUR 50 million this fiscal year. Next year, we anticipate reduced startup losses with a positive contribution expected in 2026-27.