Korea Zinc Company (010130) Q4 2024 earnings summary

Executive summary

• Consolidated sales in 4Q24 reached KRW 3,443bn, up 7.4% QoQ and 42.6% YoY, driven by higher metal prices and increased sales volumes, especially in zinc and lead.

• Operating profit declined to KRW 133bn, down 11.4% QoQ and 32.9% YoY, with OPM falling to 3.9% due to higher costs and maintenance expenses.

• Net profit turned negative at -KRW 225bn, impacted by non-recurring items and increased financial costs.

Financial highlights

• Gross profit for 4Q24 was KRW 260bn, down 3.7% QoQ and 12.3% YoY.

• EBITDA for 4Q24 was KRW 221bn, a decrease of 12.2% QoQ and 16.2% YoY.

• Total assets increased to KRW 14,875bn, with liabilities rising sharply to KRW 7,284bn, and net debt at KRW 2,205bn.

Outlook and guidance

• 2025 sales targets: zinc 630,000 MT, lead 450,000 MT, silver 1,935 MT, gold 7,920 KG, copper 34,500 MT.

• Copper capacity expansion through Fumer conversions aims to add 100,000 tons by 2028, boosting revenue by KRW 2.1tn.

• MacIntyre Wind Farm to begin operation in Nov 2025, supporting renewable energy goals and RE100 compliance.

• Strong outlook for other metals due to China’s export restrictions; normalization of production expected to improve profitability in 1H25.