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Copper manufacturer Aurubis positive as needed outlook, shares rise on dividend surprise

European copper manufacturer Aurubis AG on Thursday reported greater fullyear revenues and was positive about demand potential customers as it proposed a greater dividend, sending its shares up 14%.

The company's full-year pre-tax operating revenue in its 2023/24 fiscal year to end September increased 19% to 413 million euros ($ 434.72 million). It had actually made an advance release of results in September.

It also verified its projection of minimized operating incomes in the brand-new 2024/25 fiscal year of in between 300 and 400 million euros.

Aurubis said it would propose a dividend of 1.50 euros per share, greater than analysts' expectations. Its shares rose around 14%. They were up 14.8% at 87.25 euros by 1040 GMT.

CEO Toralf Haag said in an online press conference that the business anticipated lower treatment charges for copper concentrate ( ores).

Haag said the copper concentrate market was most likely to be tighter in the brand-new year.

Refining charges, called copper concentrate treatment and refining charges are paid by miners to smelters to fine-tune concentrate into metal and are an essential part of the international copper industry's revenues. Tighter products imply that refiners have to deal lower treatment and refining charges to attract concentrates.

But regardless of the hard market, Aurubis already had protected 90% of its concentrate requirements. Aurubis has a. long-lasting policy of settling long-term concentrate supply. agreements.

Due to our position on the market, our long-term agreement. structure, and our supplier diversification, we are confident. that we will as soon as again secure a great copper concentrate. supply, it stated.

High investment costs, specifically for its brand-new recycling. smelter in Richmond in Georgia in the United States, will also. problem revenues in the brand-new year. Haag said the financial investments were. arranged expenses and there were no issues with the Richmond. job.

The business stated it anticipated ongoing high need for. copper items due to increased electrification such as cars and trucks. and the trend towards renewable resource.

We anticipate demand for the metals Aurubis produces to remain. strong overall, it stated.

In specific, we expect strong demand for our wire rod to. continue. Demand for shapes will stay at a similar level to. the previous year. For flat rolled products, we anticipate a. decrease in sales..

(source: Reuters)