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 and the growth of the world’s middle class will continue to drive copper demand upwards. In particular, it will expand at a disproportionately high rate in the next few years in China, which is already the most significant market, and in the other emerging countries. 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 the world’s leading 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 in the future. If national and international recycling regulations become stricter and 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, to the effect that their contents of copper are decreasing and the concentrations of tramp elements and impurities are increasing. One of Aurubis’ strengths is processing complex materials, e.g. electronic scrap. Aurubis continuously develops this expertise to develop effective and resource-efficient processing methods for the raw materials of the future. 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 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 growth potential in an expansion of our processing capacities in regions with favorable economic conditions and 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.
Development of 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 additional services, processing specific raw materials and offering additional closed recycling solutions. We will continue expanding and improving these solutions to create added value for our customers and suppliers. If the demand of our customers and suppliers for our solutions and services 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. 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.