Aurubis, Europe’s largest copper producer, has reported a significant metal theft that could result in losses amounting to hundreds of millions of euros. The company identified discrepancies in its inventories and shipments of metal, leading them to believe they have been targeted by criminal activity once again. Germany’s Public Prosecutor’s Office and police are conducting an investigation into the suspected theft ring.
Impact on the Metals Industry
The recent metal theft experienced by Aurubis is yet another blow to the struggling metals industry. Earlier this year, trading giant Trafigura fell victim to a $577 million nickel fraud. The company discovered that shipments from TMT Metals, a trading firm managed by Prateek Gupta, had falsified documents for nickel shipments— a key metal used in steel and battery production. Trafigura has since taken legal action against TMT.
Market Reaction
Following the metal theft revelation, Aurubis shares plummeted by 15% and were trading at EUR64.98 as of 0840 GMT on Friday. Other metals producers are also feeling the impact, with German steel producer Salzgitter suspending its earnings guidance for the year. Salzgitter, which holds a 29.99% stake in Aurubis, relies on Aurubis’s performance for its own financial results. Salzgitter shares dropped by 4.8%, trading at EUR25.90.
Investigation and Improved Security Measures
Aurubis’s executive board and supervisory board have launched investigations with the help of internal and external experts to uncover the full extent of the metal theft and enhance their security concept.
Investigation into Theft at Aurubis Continues
Aurubis, a leading copper producer, has announced that an investigation is currently underway regarding a recent theft at the company. The investigation is expected to run until the end of September, and while many details are still unclear, Aurubis is actively working to uncover the scale of the theft.
According to a spokesperson from the company, discrepancies were noticed between the metal inventories and the recorded data in the books. However, it has not been confirmed whether the theft involved individuals from within the company.
The stolen copper shipment in June is believed to be part of a larger cargo that also included precious metals such as gold and silver. In normal circumstances, a sample of the cargo is taken before shipment to determine the quantity of each material. Aurubis discovered several weeks later that the actual volumes did not match up with the original sample.
Determining the exact tonnage of the stolen materials has proven to be challenging, especially with copper. The company cannot confirm if more than one cargo was affected or the origin of the shipment.
While the financial impact of the theft remains uncertain, Aurubis anticipates potentially significant losses in the low three-digit-million-euro range. This means that the company is not likely to achieve its projected operating earnings before taxes of 450 million to 550 million euros ($488 million-$596.4 million) for the year.
The investigation is ongoing, and Aurubis is committed to resolving this matter in a timely manner.
