Aurubis sees lower profit on weak copper refining charges

Europe’s largest copper producer Aurubis reported first quarter operating core profit slightly below market expectations on Thursday, hit by lower treatment and refining charges for smelting copper concentrates and a maintenance shutdown at its Hamburg site.

Its operating earnings before interest, taxes, depreciation and amortization fell to 164 million euros ($193 million) for the first quarter, from 184 million euros a year ago. That slightly missed analysts’ expectations of 169 million euros in a company-provided poll.

The Hamburg-based company said its net cash flow for the first quarter was -8 million euros, significantly worse than the previous year’s 178 million euros, which it said in a presentation was because of a temporary increase in working capital and higher metal price levels.

The company was supported by a strong result for metals and stable product markets despite a turbulent geopolitical environment, chief executive Toralf Haag said in a statement.

Aurubis produces around 1.2 million metric tons of copper cathodes and 2 million tons of sulphuric acid, along with other metals such as gold, silver and tin.

Gold has experienced a substantial rally this year, gaining nearly 13% in January, with analysts expecting the bull run to continue.

Aurubis lifted its forecast for 2025/26 on January 28, now expecting operating earnings before taxes of 375-475 million euros.

This compares to a previous forecast of an EBT of 300-400 million euros for the fiscal year 2025/26. The Germany company also said its first quarter EBT stood at 105 million euros.

($1 = 0.8482 euros)

(By Bernadette Hogg and Danny Callaghan; Editing by Matt Scuffham)