Inside Korea Zinc's Onsan melter in Ulsan (Korea Zinc)
Inside Korea Zinc's Onsan melter in Ulsan (Korea Zinc)

Kora Zinc’s annual operating profit is expected to surpass the 1 trillion won milestone for the first time in four years, buoyed by a sharp rise in global gold and silver prices, market data showed Thursday.

According to a consensus among local brokerage compiled by market tracker FnGuide, Korea Zinc’s operating profit for 2025 is projected at 1.16 trillion won ($793 million), up 69.2 percent from a year earlier.

If realized, it would mark the company’s first time surpassing the 1 trillion won mark since 2021, when operating profit came to 1.1 trillion won.

For the Oct.-Dec. period, Korea Zinc is projected to post revenue of about 4.61 trillion won and operating profit of roughly 358.9 billion won, up 33.6 percent and 107.3 percent, respectively, from a year earlier. The company is scheduled to release its full earnings report Feb. 10.

Analysts credit the robust earnings primarily to higher precious metal prices.

International gold prices have climbed to pass $5,000 per ounce, while silver has surged past $100 per ounce, both hitting record highs in recent months.

Precious metals accounted for about 40 percent of Korea Zinc’s total revenue, but this portion increased to around 50 percent last year amid surging prices. Since gold and silver are extracted during the company’s smelting process, production costs are relatively low, enabling profit margins to expand.

“Price increases of key metals in the fourth quarter, including silver up 40.1 percent and gold up 20.4 percent, are expected to underpin strong earnings,” said Park Kwang-rae, a research analyst at Shinhan Investment & Securities. “Korea Zinc benefits the most when silver prices rise.”

Park forecasted that if silver averages around $90 per ounce this year, Korea Zinc’s silver revenue could hit 7 trillion won, accounting for as much as 47 percent of total sales. Factoring in elevated gold prices, he estimated total revenue could climb to 21.9 trillion won, with operating profit potentially reaching 1.5 trillion won.


sahn@heraldcorp.com