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 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.

• Net debt increased to 2,900 bn KRW, up 692 bn KRW QoQ.

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.