Korea Zinc Company (010130) Q1 2025 earnings summary

Executive summary

• Consolidated sales reached 3,833 bn KRW in 1Q25, up 12.3% QoQ and 61.4% YoY, with operating profit at 271 bn KRW, up 125.5% QoQ and 46.9% YoY; net profit rebounded to 160 bn KRW from a loss in 4Q24, up 406 bn KRW QoQ and 48 bn KRW YoY.

• Revenue for Q1 2025 was KRW 3,832.8 billion, with operating income of KRW 271.1 billion and net income of KRW 162.5 billion, reflecting stable performance in core non-ferrous metals and expansion in new business areas.

• The company maintained a strong balance sheet with total assets of KRW 14,383.5 billion and equity of KRW 7,654.1 billion at quarter-end.

• Major shareholder change occurred, with YPC becoming the largest shareholder at 25.42% after a share transfer.

• Revenue and profitability were driven by strong precious and rare metal prices, favorable FX, and improved production yields.

Financial highlights

• Gross profit rose to 406 bn KRW, up 67.4% QoQ and 52.5% YoY; gross margin improved to 10.6%.

• EBITDA increased to 360 bn KRW, up 152 bn KRW QoQ and 100 bn KRW YoY.

• Cash and equivalents declined to 577 bn KRW, down 317 bn KRW QoQ.

• Q1 2025 saw a net cash outflow from operations of KRW 468.4 billion, mainly due to working capital changes.

• Dividend payout for 2024 was KRW 17,500 per share, with a policy to maintain a total shareholder return rate above 40%.

Outlook and guidance

• Sustained profitability expected in 2Q25 due to strong rare metal prices and improved zinc supply-demand balance.

• Higher utilization and zinc recovery rates anticipated to further boost profitability.

• The company aims to maintain a total shareholder return rate above 40% over the next three years and keep the retention rate below 8,000%.

• Ongoing investments in nickel refining and battery materials are expected to strengthen the value chain and support future growth.