Korea Zinc (010130.KS) Q1 operating profit surges 175% to ₩746.1B — record quarter

Record Quarter: ₩746.1 Billion Operating Profit, +175% Year-over-Year

Korea Zinc (010130.KS), the world's largest zinc and lead smelter, reported Q1 2026 revenue of ₩6.072 trillion (+58.4% year-over-year) and an operating profit of ₩746.1 billion (+175.2% YoY) — the highest single-quarter operating profit in the company's history. The operating margin expanded to 12.3%, up 5.2 percentage points from Q1 2025 and more than 3 percentage points above Q4 2025. The result marks the company's 105th consecutive quarter of operating profitability — more than 26 years of unbroken profitability.

Precious Metals and Critical Minerals Drive the Surge

Korea Zinc attributed the performance to its diversified smelting portfolio. Safe-haven demand drove strong sales volumes and price gains in gold and silver; antimony — a critical mineral used in semiconductors, batteries, and defense applications — saw demand expansion; the "Troika Drive" new-business segment improved margins; resource recycling operations grew; and copper sales volumes increased. The company noted that despite raw material supply chain uncertainty related to the Iran conflict and Hormuz Strait disruptions, its diversified portfolio captured upside from elevated precious metal prices.

Dividend: ₩5,000 per Share, Total ₩102 Billion

The Board of Directors resolved to distribute a Q1 cash dividend of ₩5,000 per share, amounting to ₩102 billion in total — a signal that record earnings are being translated into shareholder returns.

Macro Context: The Iran-Hormuz Premium in Metal Prices

Korea Zinc's outperformance is partly a read-through from the same geopolitical disruption driving the current oil price shock. Iran-related supply uncertainty lifted gold toward record levels above $4,600/oz, while antimony supply chains tightened. If the US-Iran deal advances and geopolitical risk premiums compress, the sustainability of precious-metal-driven margins in Q2 becomes a key variable for Korea Zinc's next quarterly report.

What to Watch

Q2 2026 results will reveal whether precious metal tailwinds persist post-Iran negotiations. Longer term, US and EU critical mineral supply chain policy — particularly toward antimony — represents a structural demand driver independent of commodity price cycles.

Not investment advice. Verify all figures with primary sources before acting.