Sunday, January 16

Aurubis: recycling as a growth driver


With its activities in the copper sector, Aurubis has an efficient core business. After the implementation of the multi-metal approach in recent years, the focus of further growth ambitions is on recycling.

Broader base thanks to the multi-metal approach

Aurubis extracts metals with the highest levels of purity from concentrates and recycling raw materials. This primarily includes copper. Some of this is processed into wires, profiles and other preliminary products. The group has been in business for more than 150 years. He has many years of extensive expertise in the extraction, processing and reprocessing of complex metals and compounds. The company now wants to use this know-how even more and has therefore developed a multi-metal approach and implemented it in recent years.

In our opinion, this is a plausible strategy because it enables us to better utilize our own production facilities. In addition, new sales markets can be opened up and dependency on copper production can be reduced, thereby placing the business model on a broader and therefore more stable basis. With this strategy, Aurubis is now extracting additional raw materials from purchased raw materials such as metal concentrates and recycling materials. Examples of this are precious metals such as gold, silver, platinum and palladium. But lead, nickel, tin, iron silicate, selenium, tellurium and sulfuric acid are now also part of the range.

Focus on sustainability

At its capital market day on December 6, 2021, the group presented the core elements of its new strategic roadmap in detail. This includes the explicit focus on the topic of sustainability. Aurubis is therefore striving to further expand its leading role in this area in the industry. In view of the energy-intensive business model, this is an ambitious goal, but one that we welcome. Also because it is not just about the implementation of more efficient processes in your own smelter network and the increasing use of new technologies (e.g. hydrogen).

As part of the further strategic course-setting (strengthening of the core business, multi-metal separation), expansion of production capacities will play an important role in the growth ambitions. The focus is on recycling systems. Currently under construction is a recycling plant in the USA for EUR 300 million. Aurubis is already playing a pioneering role in the recycling business and is thus banking on the global trend of increasing recycling rates and closed material cycles. This development is being promoted by the currently prevailing trends in areas such as electromobility, renewable energies and digitization. Sustainability aspects, but also raw materials that are sometimes only available to a limited extent, also increase the need for the reprocessing of the materials required for this due to the economic necessity. In this way, the rare raw materials can be made available to the market again and again in a circular manner. Aurubis also sees great opportunities in the field of battery recycling, which is why they want to position themselves here by building up capacities over the next 5 years.

We rate the strategic positioning of the past few years as expedient and see the Group in a good starting position, also due to the further setting of the course, in order to take advantage of the growth opportunities that arise. The company had achieved record results in the 2020/21 financial year (until the end of September). It would like to build on this in the current financial year despite a challenging environment with rising costs and energy prices.

Risks for further business development are macroeconomic and industry-specific fluctuations, which is why the business model continues to have a cyclical character despite the broader basis due to the multi-metal approach. This also applies against the background of the still high level of dependence on copper production. In addition, volatile raw material prices in purchasing and sales are factors that can lead to fluctuating earnings and profitability indicators. We see rising energy prices and negative exchange rates as further potential negative factors.

Product idea: Classic discount certificate on Aurubis

Discount certificates are an attractive alternative to direct investments in the share. A selection of corresponding products on the Aurubis AG base value is available to investors. One example is a discount certificate that is due on December 23, 2022 (repayment date) and is currently quoted at a discount of around 12% on the price of the Aurubis AG share. The investor does not receive any other income (e.g. dividends) and has no further claims from the underlying. The amount of the possible repayment is limited by the cap at EUR 84.00.

There are two ways to repay the certificate:
1. If the closing price of Aurubis AG on the XETRA Frankfurt stock exchange on December 16, 2022 (reference price) is at or above the cap, the investor receives the maximum amount of EUR 84.00.
2. If the reference price is below the cap, the investor receives a repayment amount that corresponds to the reference price multiplied by the subscription ratio (1.00). The investor suffers a loss if the redemption amount is less than the purchase price of the product.

A Complete loss of the capital employed is possible (Total loss risk). A Total loss occurs, if the reference price is zero is. A Total loss of the capital employed also possible if DZ BANK as the issuer can no longer meet its obligations under the certificate due to official orders or insolvency (insolvency / overindebtedness).

The discount certificate described here is aimed at investors who have an investment horizon until December 23, 2022 and assume that the Aurubis AG base value will be at or above EUR 84 on December 16, 2022.

Risk description
You can find a detailed explanation of the technical terms mentioned in our glossary.

Stand: 17.12.2021
Issuer: DZ BANK AG / online editorial team

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A complete loss of the capital employed (total loss) is possible. You are exposed to the risk of insolvency, i.e. DZ BANK’s overindebtedness or insolvency (issuer risk).

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Kind regards
Your DZ BANK Sales Team

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This document is a marketing release and is for informational purposes only. This document was created by DZ BANK AG Deutsche Zentral-Genossenschaftsbank (“DZ BANK”) and is intended for distribution in the Federal Republic of Germany. This document is not intended for persons with residence and / or registered office and / or branch offices abroad, especially in the United States of America, Canada, Great Britain or Japan. This document may only be distributed abroad in accordance with the legal provisions applicable there and persons who come into possession of this information and materials must inform themselves about the legal provisions applicable there and follow them. This document constitutes neither a public offer nor an invitation to submit an offer to purchase securities or financial instruments. In particular, DZ BANK does not act as an investment advisor or due to an asset management obligation. This document is not a financial analysis. This document represents an independent evaluation of the relevant issuer or securities by TraderFox on behalf of DZ BANK. All evaluations, statements or explanations contained herein are those of the author and do not necessarily agree with those of the issuer or third parties. DZ BANK has taken the information on which the document is based from sources considered reliable, but without verifying all of this information itself. Accordingly, DZ BANK makes no guarantees or warranties with regard to the accuracy, completeness or correctness of the information or opinions contained herein. DZ BANK assumes no liability for direct or indirect damage caused by the distribution and / or use of this document and / or in connection with the distribution and / or use of this document. An investment decision regarding any securities or other financial instruments should be made on the basis of a consultation and a prospectus or information memorandum and in no case on the basis of this document. Depending on the specific investment goals, the investment horizon or the individual financial position, the ratings may not be suitable or only suitable to a limited extent for individual investors. The information and opinions are correct at the time this document was created. They may become obsolete due to future developments without the document having been changed.


DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main,
Platz der Republik, 60265 Frankfurt am Main
Phone: +49 69 7447 – 01
Telefax: + 49 69 7447 – 1685
E-mail: [email protected]
Represented by the board: Uwe Fröhlich (Co-CEO), Dr. Cornelius Riese (Co-CEO), Uwe Berghaus, Dr. Christian Brauckmann, Ulrike Brouzi, Wolfgang Köhler, Michael Speth, Thomas Ullrich
Chairman of the Supervisory Board: Henning Deneke-Jöhrens
Company headquarters: Registered as a stock corporation in Frankfurt am Main,
Frankfurt am Main Local Court, Commercial Register HRB 45651
At sight: DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt
am Main is managed by the Federal Financial Supervisory Authority (BaFin)
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Responsible for the content: Maximilian Wirsching, DZ BANK AG, Frankfurt
© DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, 2021
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of DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main