Korea Zinc (010130) Q2 2026 earnings summary

Executive summary

• Consolidated sales reached KRW 6,373B in 2Q26, up 5.0% QoQ and 66.6% YoY, driven by strong zinc and minor metal prices and higher copper sales volume.

• The company operates as a comprehensive non-ferrous metal smelting group, producing zinc, lead, gold, silver, copper, and sulfuric acid, with a global network of subsidiaries and diversified business segments including resource recycling, renewable energy, and battery materials.

• Major investments include a large-scale U.S. integrated non-ferrous metal smelter project, with significant capital allocation and strategic partnerships to secure critical mineral supply chains.

• Operating profit was KRW 587B, down 21.3% QoQ but up 126.8% YoY, with OPM at 9.2%.

• Net profit stood at KRW 352B, nearly flat QoQ and up 22B YoY.

Financial highlights

• Consolidated sales for H1 2026 were KRW 12.44 trillion, down from KRW 16.59 trillion in FY2025, with operating income of KRW 1.33 trillion and net income attributable to controlling interests of KRW 703.2 billion.

• Gross profit for 2Q26 was KRW 809B, down 15.2% QoQ but up 108% YoY.

• EBITDA reached KRW 696B, a decrease of 17.9% QoQ but an increase of 97.2% YoY.

• Cash and cash equivalents at June 2026 were KRW 905.2 billion, with total assets of KRW 22.72 trillion and total equity of KRW 11.59 trillion.

• Basic EPS for H1 2026 was KRW 34,482.

Outlook and guidance

• Production reliability and copper sales volumes are expected to improve as recovery facilities stabilize.

• The company targets stable shareholder returns, maintaining a payout ratio above 40% and quarterly dividends, with a focus on financial soundness and investment for growth.

• The U.S. smelter project is expected to drive mid- to long-term growth, with production ramp-up planned for 2029.

• SMC expects improved profitability in 3Q26, supported by higher sulfuric acid prices and robust zinc prices.

• Strategic minerals production (antimony, bismuth, indium) to be maximized amid expected supply shortages.