Aurubis: Multiplying Value Through Recycling and Sustainability

Aurubis (ETR:NDA), a world leader in copper recycling and supplier of non-ferrous metals, has a strong track record of driving sustainable growth. With a market capitalization of GBP 2.77 billion and an enterprise value of GBP 2.79 billion, Aurubis is well-positioned to continue multiplying its value in the coming years. This article explores the strategic initiatives and growth opportunities that Aurubis is pursuing to achieve this goal.

Aurubis' strategy is based on three pillars: securing and strengthening the core business, pursuing growth options, and expanding an industrial pioneering role in sustainability. The company's focus on recycling and sustainability sets it apart in the non-ferrous metals sector and offers numerous opportunities for value creation.

Securing and strengthening the core business
Aurubis is continuously investing in its sites to expand processing capabilities and increase metal yield in its smelter network. The company aims to further optimize material flows among its plants to take even greater advantage of synergies. Projects like Complex Recycling Hamburg (CRH) are driving internal value creation, building up recycling capacities, and furthering the circular economy. By selectively expanding its multimetal capacities and abilities through dedicated projects and initiatives, Aurubis is securing and strengthening its core business.

Pursuing growth options
The recycling business is growing in importance in Europe and the US, and Aurubis is well-positioned to capitalize on this trend. The company's new plant, Aurubis Richmond in Georgia, US, strengthens its smelter network and offers new diversification opportunities beyond Europe. Aurubis also sees huge potential in battery recycling, especially in the recycling of black mass from lithium-ion batteries. By expanding its recycling capacities and exploring new growth opportunities, Aurubis is pursuing growth options that align with its strategic pillars.

Industry leadership in sustainability
Sustainability is an integral part of Aurubis' strategy. The company is planning a 50% reduction in Scope 1 and 2 emissions by 2030 through the use of green hydrogen, electrifying its production processes, and expanding the captive generation of clean electricity. Aurubis is also targeting a 24% drop in its Scope 3 emissions per ton of copper cathode and increasing the recycling proportion by up to 50% by 2030. By expanding its industrial pioneering role in sustainability, Aurubis is driving sustainable growth and enhancing its long-term financial performance.

Aurubis' valuation reflects its unique positioning in the non-ferrous metals sector. With a trailing PE ratio of 8.00, Aurubis is relatively undervalued compared to its peers. The company's strong financial position, with a current ratio of 2.15 and a Debt/Equity ratio of 0.08, demonstrates its ability to generate value for shareholders. Aurubis' Return on Equity (ROE) of 9.46% and Return on Invested Capital (ROIC) of 6.32% further highlight the company's profitability and efficiency.

In conclusion, Aurubis' focus on recycling and sustainability, coupled with its strategic initiatives and growth opportunities, positions the company well to multiply its value in the coming years. By securing and strengthening its core business, pursuing growth options, and expanding its industrial pioneering role in sustainability, Aurubis is well on its way to achieving its long-term goals. Investors should consider Aurubis as a compelling opportunity in the non-ferrous metals sector.