Korea Zinc's third-quarter operating profit fell 48.2% from a year earlier to 141.7 billion won, even though revenue rose 46.3% to 6.0861 trillion won. A fall in the won-dollar exchange rate and lower precious-metal prices hit earnings.
At a glance
- The operating margin fell to 2.3% from 6.6% a year earlier and 9.2% in the second quarter.
- Nine-month operating profit still rose 83.6% to 1.4748 trillion won.
- Early spending on Project Crucible, a planned $7.4 billion smelter in Tennessee, also weighed on results.
Background
Korea Zinc refines zinc, lead, gold, silver and other metals at its Onsan refinery in South Korea and at Sun Metals in Australia. It sells its main metals in US dollars, so its earnings in won fall when the won-dollar exchange rate falls. Treatment charges are the fees miners pay smelters to process ore concentrate.
What happened
Korea Zinc posted third-quarter operating profit of 141.7 billion won, down 48.2% from a year earlier, the company announced on November 4, Maeil Business Newspaper reported. Revenue rose 46.3% to 6.0861 trillion won, the third straight quarter above 6 trillion won.
The operating margin fell to 2.3%, from 6.6% a year earlier and 9.2% in the second quarter. Brokerages had expected profit in the 270 billion won range, Chosunbiz reported.
Why profit fell
Korea Zinc sells its main metals in dollars, so a fall in the won-dollar exchange rate cut its revenue in won. Lower precious-metal prices added to the pressure.
Early costs for Project Crucible, a roughly $7.4 billion critical-minerals smelter planned in Tennessee by Korea Zinc and the US government among others, also weighed on results.
What comes next
Korea Zinc is counting on stronger zinc and copper prices in the fourth quarter. LME zinc was $3,875 a tonne on November 4, up 28.7% from its March 19 low, Chosunbiz reported. The company also plans to start full germanium sales next year.
A company official cautioned that higher metal prices may not lift profits straight away, partly because tight concentrate supply can cut the treatment charges smelters earn. Brokerages expect fourth-quarter operating profit in the 400 billion won range.
Our read
Outlook: neutral. Korea Zinc's weaker profit reflects currency and precious-metal prices rather than a change in zinc supply.
What to watch
- Fourth-quarter results, which brokerages expect to be the year's strongest.
- The won-dollar exchange rate.
- Progress on Project Crucible in Tennessee.
For information only, not investment advice.
Zinc price in India
metalscost.com India reference price as of 2026-11-07.
Detailed analysis
Timeline
- 2026-03-19: LME zinc falls to its 2026 low of $3,010 a tonne.
- 2026-11-04: Korea Zinc reports third-quarter results.
Currency Impact
A fall in the won-dollar exchange rate cut Korea Zinc's revenue in won.
Refinery Output
Stable operations at Onsan and Sun Metals kept revenue above 6 trillion won for a third straight quarter.
What could lift prices
- LME zinc is up 28.7% from its March low.
- Tight concentrate supply can squeeze smelters' treatment charges.
What could weigh on prices
- Korea Zinc plans to sell more zinc in the fourth quarter.
- Project Crucible would add refining capacity in the United States.
Country impact
| Country | Impact | Reason |
|---|---|---|
| South Korea | High | Korea Zinc's main refinery is at Onsan. |
| United States | Medium | Korea Zinc is building Project Crucible in Tennessee with US government backing. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Smelting | Negative | Korea Zinc's operating margin fell to 2.3%. |
Who gains, who loses
- KZ Trading: Its operating profit rose to 16.4 billion won from 5.9 billion won in the second quarter.
- Korea Zinc shareholders: Quarterly profit came in at about half of brokerage forecasts.
Other ways this could play out
- If zinc and copper prices hold, fourth-quarter profit could rebound, as brokerages expect.
- If the won-dollar rate keeps falling, earnings could stay under pressure.
Price risks
- Higher zinc prices may not reach smelter profits if treatment charges fall.
- Currency moves can swing reported earnings.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
South Korea
United States