Korea Zinc Company (010130) Q1 2026 earnings summary

Executive summary

• Achieved record consolidated sales of KRW 6.1 trillion in 1Q26, up 27.3% QoQ and 58.4% YoY, driven by strong zinc, lead, and precious metals performance.

• Consolidated operating profit reached KRW 746 billion, up 74.1% QoQ and 175.2% YoY, with OPM improving to 12.3%.

• Net profit rose to KRW 354 billion, up 67.2% QoQ and 118.2% YoY.

• Standalone revenue hit a record KRW 4.3 trillion, with OP at KRW 693 billion, supported by higher silver prices and sales volume.

Financial highlights

• Gross profit increased to KRW 953 billion, up 54.8% QoQ and 134.6% YoY.

• EBITDA surged to KRW 847 billion, up 70.5% QoQ and 132.2% YoY.

• Gross profit margin improved to 15.7% (up 2.8pp QoQ, 5.1pp YoY); OPM rose to 12.3% (up 3.3pp QoQ, 5.2pp YoY).

• Precious metals revenue grew 60.1% QoQ, with silver and gold contributing significantly to earnings.

Outlook and guidance

• 2Q26 expects continued earnings stabilization through high-margin product sales despite metal price volatility and geopolitical risks.

• Silver and gold prices expected to remain elevated, supporting profitability.

• SMC anticipates increased production and sales as logistics normalize post-flooding.