Korea Zinc Company (010130) Q3 2024 earnings summary

Executive summary

• Consolidated sales reached 3,207 bn KRW in 3Q24, up 4.9% QoQ and 39.8% YoY, driven by higher precious metal prices and increased sales volume.

• Operating profit declined to 150 bn KRW, down 44.2% QoQ and 6.5% YoY, mainly due to lower base metal prices, weak USD, and maintenance costs.

• Net profit was 153 bn KRW, a decrease of 22 bn KRW QoQ but up 75 bn KRW YoY.

Financial highlights

• Gross profit for 3Q24 was 270 bn KRW, down 92 bn KRW QoQ but up 43 bn KRW YoY.

• EBITDA stood at 314 bn KRW, nearly flat QoQ but up 125 bn KRW YoY.

• Gross profit margin dropped to 8.4% from 11.8% in 2Q24.

• Operating profit margin fell to 4.7% from 8.8% in the previous quarter.

Outlook and guidance

• Excluding one-off maintenance costs, profitability is expected to improve in 4Q24 with rising metal prices.

• Lead sales volume is projected to increase due to high seasonality.

• Revenue is expected to rise further if interest rates are cut.

• Recovery in production volume anticipated from Ferric Oxide Plant in 4Q24.