Release Date: December 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aurubis AG (AIAGF, Financial) achieved a robust operating EBT of €413 million, marking a 19% increase over the previous year.
- The company reported a net cash flow of €537 million, demonstrating strong earnings potential.
- Aurubis AG (AIAGF) proposed a dividend of €1.50 per share, €0.10 higher than the previous year, reflecting financial strength.
- The company successfully implemented safety and security improvements, with 400 measures identified and a quarter already executed.
- Aurubis AG (AIAGF) maintained stable production performance despite market volatility, with satisfactory asset reliability at the group level.
Negative Points
- Aurubis AG (AIAGF) faced a longer-than-anticipated ramp-up phase at the Hamburg site, impacting throughput.
- The company experienced significantly decreased sulfuric acid revenues and lower income from refining charges.
- Total group costs increased by 4.6%, driven by higher personnel costs and legal advisory expenses.
- Aurubis AG (AIAGF) incurred €15 million in consultancy fees related to fraud incidents and €9.5 million in compensation for former executive board members.
- The company anticipates reduced pricing on the concentrate market, indicating potential pressure on TCRCs.
Q & A Highlights
Q: Can you explain the changes in your CapEx agenda for 2026 and 2027, particularly the reduction in growth CapEx?
A: As a new management board, we reviewed the CapEx plan and took a more focused approach. There have been no major changes, just fine-tuning to ensure reliable execution of improvements. (Unidentified_3, CEO)
Q: Have you concluded your review of the budgeting for CapEx and operational targets?
A: Yes, we conducted due diligence on the CapEx projects, including budget and timeline. There have been some changes, but no major ones. We are confident in the strategic projects and their expected returns. (Unidentified_3, CEO)
Q: How should we think about the phasing of the 50 million startup losses included in your guidance?
A: The ramp-up costs for strategic projects are evenly distributed over the four quarters of fiscal year 2024/25. Most of these costs are related to the Richmond project. (Unidentified_4, CFO)
Q: Can you provide more details on the one-off costs related to legal and consulting fees?
A: The one-off costs for consultancy related to fraud incidents were around 15 million euros, and compensation for former executive board members was 9.5 million euros. (Unidentified_4, CFO)
Q: What are your expectations for the TCRC benchmark and its impact on your guidance?
A: We expect the TCRC benchmark to be set in the coming weeks. Our guidance assumes a tighter concentrate market, with TCRCs under pressure compared to last year. However, our robust business model can counteract this pressure. (Unidentified_3, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
