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Europe’s Top Copper Smelter Warns Power Costs May Hit Profit

  • Aurubis shares climb after reporting strong quarterly earnings
  • The company expects to face considerably higher power costs
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Aurubis AG, Europe’s top copper smelter, is reaping big profits from booming metals prices, but warned that the region’s lingering energy crisis may start to hurt its bottom line.

A spike in power and gas prices has wreaked havoc on many industrial plants, with several large smelters forced to curtail output or mothball operations during the crisis -- sending metals prices rallying. Long-term power contracts and hedges have so far helped protect Aurubis from high energy costs, with the company on Monday reporting bumper quarterly earnings.