The German copper giant Aurubis on Tuesday estimated the cost of massive metal thefts from its inventories at almost €200 million, as it revealed at the end of August following an inventory.
The German copper giant Aurubis on Tuesday estimated the cost of massive metal thefts from its inventories at almost €200 million, as it revealed at the end of August following an inventory.
“Aurubis today presented the results of the inventory carried out after the cases of theft and fraud. According to the results, the value of the missing metals (…) amounts to 185 million euros,” it said in a statement.
The group revealed in late August that it had observed “considerable inventory discrepancies” in its copper stocks, as well as “raw materials destined for the recycling sector.”
These elements led the company, based in Hamburg (north), to conclude that it had been “the subject of criminal activities”, adding to facts already reported at the end of June. The company, however, indicates that it “excludes the possibility that its customers (…) have been negatively affected” by these thefts.
30 million euros in compensation
These revelations immediately caused the group’s shares to fall by more than 10% on the Frankfurt Stock Exchange in early September. This has not yet returned to its price prior to the announcement, having closed on Tuesday at 69.34 euros, compared to 77 euros before the crisis. A criminal investigation has been entrusted to regional judicial authorities, the conclusions of which are not yet known.
Aurubis, however, hopes to “receive insurance compensation worth 30 million euros” and the “seizure of the assets of the criminals involved”, which could “partially compensate” his losses.
The group now expects an operating profit of between “310 to 350 million euros” for the 2022/2023 fiscal year, compared to “450 to 550 million euros” before this crisis, according to a press release on the results published on Monday. Aurubis’ problems arise when the group wants to invest 1.2 billion euros in developments in the United States, Bulgaria and Germany.
It is currently building a large recycling plant in Richmond (United States), which should open in January 2024. The group also claims to be well positioned in the growing electric car battery recycling market.
