Korea Zinc reported over 6 trillion won in revenue for the third quarter of this year, marking three consecutive quarters of revenue exceeding this threshold. However, a decline in metal prices, exchange rates, and initial investment costs for its U.S. smelter project significantly impacted operating profit, which nearly halved compared to the same period last year.
On November 4, Korea Zinc announced that its consolidated revenue for the third quarter reached 6.0861 trillion won, with an operating profit of 141.7 billion won. While revenue increased by 46.3% year-on-year, operating profit fell by 48.2%. The company maintained its streak of 107 consecutive quarters of operating profit.
On a standalone basis, Korea Zinc reported revenue of 3.6573 trillion won and an operating profit of 224.3 billion won. Revenue rose by 40.2% compared to the same period last year, but operating profit decreased by 4.6%.
From the first to the third quarter of this year, Korea Zinc has consistently surpassed 6 trillion won in consolidated revenue. The stable operations of its domestic Onsan smelter, along with its subsidiaries, including Cage Trading, Australia’s Sun Metal Corporation, and the U.S. resource recycling subsidiary Pedal Point, supported this revenue growth.
However, profitability has worsened. The decline in precious metals and some key mineral prices, along with falling exchange rates, contributed to the decrease in operating profit. The initial investment costs associated with the U.S. smelter project, known as Project Crucible, also weighed on the company’s performance.
Korea Zinc plans to enhance profitability by expanding its product portfolio, including the full-scale production of germanium. The stability of metal prices and exchange rates is expected to influence future performance.
A company representative stated, "The deterioration of external business conditions, such as fluctuations in global metal prices and exchange rates, has impacted profitability to some extent. However, we have demonstrated solid business stability and competitiveness by surpassing 6 trillion won in revenue for three consecutive quarters. If metal prices and exchange rates stabilize and we expand our product portfolio with the full-scale production of germanium, profitability will also improve."
Additionally, during its board meeting on the same day, Korea Zinc approved measures to enhance shareholder value, including the cancellation of treasury shares and a proposed stock split. In January, the company plans to cancel 246,665 of its 479,737 treasury shares, while the remaining 233,072 shares will be used for employee compensation over the next decade.
Furthermore, the company intends to present a stock split proposal at its regular shareholders' meeting in March. The dividend for the third quarter has been set at 5,000 won per share, with the record date on November 29.
* This article has been translated by AI.
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