Korea Zinc reported record-breaking earnings for the first quarter this year, primarily driven by a surge in demand for critical minerals.
According to the company on Wednesday, it posted 6.07 trillion won ($4.19 billion) in revenue and 746.1 billion won in operating profit, up 58.4 percent and 175.2 percent year-on-year, respectively. This extended its streak of record operating profit to 105 consecutive quarters.
Operating margin rose by 5.2 percentage points to 12.3 percent in the same period, reflecting a significant improvement in profitability.
The company said its strong performance is notable given rising global uncertainties, including geopolitical tensions in the Middle East and disruptions to key supply routes such as the Strait of Hormuz.
Leveraging its diversified product portfolio and stable production capabilities, Korea Zinc saw strong demand for critical minerals such as antimony — used in advanced and defense industries — alongside increased demand for precious metals like gold and silver as investors shift capital into lower-risk assets.
Another key contributor was the company’s Troika Drive strategy, introduced after Chairman Choi Yun-birm took office in 2022. The initiative — focused on renewable energy and green hydrogen, battery materials and resource recycling — began generating meaningful profits last year. Notably, growth in copper sales and the expansion of its recycling subsidiary, PedalPoint, further bolstered earnings.
In line with its shareholder return policy, Korea Zinc declared a quarterly dividend of 5,000 won per share, with a total payout of 102 billion won. The company has maintained a shareholder return target of 40 percent from 2024 to 2026 and has consistently exceeded this benchmark. It also demonstrated its commitment by canceling 2.04 million treasury shares last year.
The company reaffirmed its commitment to long-term growth, highlighting Project Crucible, a $7.4 billion plan to build an integrated smelter in Tennessee. The project, designated under the US government’s FAST-41 program, is set to benefit from expedited permitting and strong federal and state support, positioning it as a key hub for critical minerals and supply chain resilience.
hyejin2@heraldcorp.com
