Aurubis gives brighter earnings view as copper demand to rise
2020-12-11 13:07:13 [Print]
Aurubis AG, Europe's largest copper producer, reported a rise in annual earnings within its forecast range on Wednesday and predicted a higher range for its new financial year on the back of an expected recovery in copper demand and supply.
The company said it had come through the Covid-19 crisis well. It reported a 15% rise in operating earnings before taxes of 221 million euros ($268 million) for its 2019/20 financial year, within its forecast range of 185-250 million euros. For the 2020/21 financial year, which started in October, it forecast 210-270 million euros.
"Supported by industry forecasts and current demand on the markets, Aurubis expects global copper demand to increase again in 2021 following the temporary decline in 2020," it said.
New mining projects or mine expansions are starting in several countries and global mine output is expected to rise by nearly 4% in 2021, it said. "Accordingly, we anticipate an increasing supply of copper concentrates (ore) on the global market," it added.
Earnings were boosted by significantly higher refining charges for copper scrap and other recycling materials, higher metal gains accompanied by increased precious metal prices, and a higher concentrate throughput.
The throughput of recycling materials increased substantially, due in part to the inclusion of the newly acquired Belgian/Spanish recycling company Metallo, it said.
Aurubis said it had suffered no production limitations so far from the pandemic.
The company said it had come through the Covid-19 crisis well. It reported a 15% rise in operating earnings before taxes of 221 million euros ($268 million) for its 2019/20 financial year, within its forecast range of 185-250 million euros. For the 2020/21 financial year, which started in October, it forecast 210-270 million euros.
"Supported by industry forecasts and current demand on the markets, Aurubis expects global copper demand to increase again in 2021 following the temporary decline in 2020," it said.
New mining projects or mine expansions are starting in several countries and global mine output is expected to rise by nearly 4% in 2021, it said. "Accordingly, we anticipate an increasing supply of copper concentrates (ore) on the global market," it added.
Earnings were boosted by significantly higher refining charges for copper scrap and other recycling materials, higher metal gains accompanied by increased precious metal prices, and a higher concentrate throughput.
The throughput of recycling materials increased substantially, due in part to the inclusion of the newly acquired Belgian/Spanish recycling company Metallo, it said.
Aurubis said it had suffered no production limitations so far from the pandemic.
Copper Conc. TC 25%min CIF China
Unit:USD/mt
China copper concentrate producers' sales to production ratio statistics by province by month
Unit: %
