Aurubis, a leading global supplier of non-ferrous metals and one of the largest copper recyclers, reported a significant increase in earnings for the first nine months of the 2023/24 fiscal year. The company achieved its best quarter ever despite a major operational shutdown, highlighting its robust performance and economic resilience.
Operating earnings before taxes (EBT) for the first nine months reached EUR 333 million, a 30% increase from EUR 257 million in the previous year. This strong performance was driven by increased treatment and refining charges, higher metal premiums, strong demand for copper wire rod, and lower energy costs. Aurubis maintained its forecast for the fiscal year, expecting an operating EBT between EUR 380 and 480 million.
In the third quarter alone, which ended on June 30, 2024, Aurubis reported an operating EBT of EUR 90 million, up from EUR 18 million in the same period last year. The prior-year figures were adjusted due to the distribution of metal shortfalls related to criminal acts against the company in fiscal 2022/23.
The Multimetal Recycling segment reported an operating EBT of EUR 109 million, while the Custom Smelting & Products segment achieved EUR 317 million, both reflecting strong contributions to the company's overall performance. The company's success was bolstered by higher concentrate throughput, increased revenues from copper premiums, and lower sulfuric acid revenues.
Aurubis has made substantial investments in its core business, growth projects, and decarbonization initiatives, totaling over EUR 500 million, while maintaining low debt levels. Key investments include the new recycling plant in Richmond, USA, the Bleed Treatment Plant in Olen, Belgium, and the ASPA project in Beerse, Belgium.
Aurubis reported revenues of EUR 12,939 million for the first nine months, consistent with the previous year's level. The operating return on capital employed (ROCE) was 11.1%, close to last year's 11.2%, despite the financial impact of past criminal acts and ongoing investments.
The company's net cash flow for the first nine months was EUR 52 million, slightly lower than the previous year's EUR 73 million, mainly due to high inventory cash outflows. Aurubis maintained a strong financial position with an operating equity ratio of over 54% as of June 30, 2024, and a moderate debt coverage ratio of 0.5.
Aurubis has continued its high level of investment in core operations and growth projects, including major initiatives in Hamburg and Pirdop, Bulgaria. These projects focus on modernizing key plant areas, expanding electrolysis capacity, and implementing decarbonization measures.
The company will provide further insights into its performance and future plans during an English-language webcast for analysts, investors, and journalists. Aurubis' comprehensive report on the first nine months of 2023/24 is available on its website.
