Korea Zinc posts record first-half sales, operating profit

Korea Zinc posted record sales and operating profit for the first half of this year, driven by rising precious-metal prices and growing demand for rare metals used in advanced manufacturing, defense and semiconductor production.

The company said Wednesday its consolidated first-half sales reached approximately 12.45 trillion won ($8.71 billion), with operating profit of 1.33 trillion won — up 62.5 percent and 151.5 percent, respectively, from the same period last year. The operating profit margin improved 3.8 percentage points to 10.7 percent.

On a standalone basis, excluding domestic and overseas subsidiaries, results were also the best in the company's history. First-half sales rose 72 percent year-on-year to about 8.34 trillion won, while operating profit climbed 137.8 percent to 1.28 trillion won. The standalone operating profit margin widened 4.3 percentage points to 15.4 percent.

Second-quarter results extended the company's streak to 106 consecutive quarters of operating profit since mandatory quarterly earnings disclosure began. Consolidated second-quarter sales came in at 6.37 trillion won and operating profit at 587 billion won, up 66.6 percent and 126.8 percent, respectively. On a standalone basis, second-quarter sales were 4.05 trillion won and operating profit 589 billion won, gains of 64.4 percent and 121.0 percent from a year earlier.

By product, precious metals led the earnings growth. First-half silver sales surged to 4.11 trillion won, nearly triple the 1.52 trillion won recorded in the same period last year. Gold sales also rose 58.5 percent year-on-year to about 1.23 trillion won.

Zinc sales grew 22.6 percent to 1.56 trillion won, while lead sales climbed 9.5 percent to 717 billion won. Copper sales expanded 51.8 percent to 334 billion won.

Rare metals — essential materials for advanced and defense industries — also exceeded the company's business plan. First-half indium sales rose 11.1 percent year-on-year to 30 billion won, and bismuth sales jumped 81.8 percent to 40 billion won. Semiconductor-grade sulfuric acid, widely used in cleaning processes during chip manufacturing, posted first-half sales of 71 billion won, a modest increase from the prior year.

The board approved a second-quarter dividend of 5,000 won per share on Wednesday, with a record date of Aug. 20 and a payment date of Sept. 4. Total second-quarter dividend payments will amount to approximately 102 billion won. Combined with the first-quarter dividend already paid, the per-share dividend for the first half stands at 10,000 won, with total first-half payments of approximately 204 billion won.

Korea Zinc set a total shareholder return target of at least 40 percent for 2024 through 2026 in its value-enhancement plan announced in October 2024, and exceeded that target in both 2024 and 2025.

"The technological innovation efforts of our employees, proactive investment, unrivaled recovery capabilities for valuable metals, and a broad product portfolio have together delivered record first-half earnings amid shifting market conditions," a company official said. "We will continue working to improve productivity and profitability while striving to enhance corporate value."

Korea Zinc announced Project Crucible on Dec. 15 last year — a large-scale integrated smelter project in Tennessee, developed in partnership with the US government and strategic investors, with a total investment of approximately $7.4 billion. The facility is planned to produce 12 types of non-ferrous metals, including 11 critical minerals, as well as semiconductor-grade sulfuric acid.

Korea Zinc Chairman Choi Yun-beom, speaking earlier at the Korea-Canada Energy and Resources Supply Chain Cooperation Forum in Ottawa in June, described Project Crucible as "the largest integrated non-ferrous metal smelting hub in North America, built on the world-class operational experience and technological expertise of Korea Zinc's Onsan smelter." He added that the project would "diversify the critical mineral supply chain in the United States and North America, and strengthen the overall supply chain competitiveness of the region by expanding cooperation with Canada's critical minerals industry."