Korea Zinc Co., Ltd. · KRX:010130
Korea Zinc — Q4 2024 Earnings Presentation
29 slides from Korea Zinc's earnings presentation, February 2025
Slide 1: Korea Zinc 4Q 2024 Earnings Release
Korea Zinc 4Q 2024 Earnings Release February 2024
Slide 2: Contents
CONTENTS 4Q 2024 Business Results Results & Outlook by Business • Korea Zinc (Standalone) • KZ Trading • Sun Metals Corporation 2025 Business Plan EGM Results Appendix
Slide 3: Disclaimer
Disclaimer This presentation contains forward looking information and statements with respect to market conditions, financial conditions, results of operations and business, and plans of the management. Please note they may differ from actual results. Financial results herein are under audit review,
Slide 4: 4Q 2024 Business Results (Consolidated)
4Q 2024 Business Results (Consolidated) Sales by Business (bn KRW) Quarterly Results (bn KRW) KZ (Standalone) KZ Trading (Sorin Corp.) SMH Steel Cycle and others 3,440 4Q23 1Q24 2Q24 3Q24 4Q24 QoQ YoY 3,209 3,058 907 Sales 2,415 2,375 3,058 3,207 3,443 +236 +1,028 777 683 2,415 156 2,375 70 265 281
Slide 5: 4Q 2024 Business Results (Consolidated)
4Q 2024 Business Results (Consolidated) Balance Sheet (bn KRW) Financial Ratios 2Q24 3Q24 4Q24 QoQ Liabilities/Equity Debt/Equity Net Debt/Equity* Asset 13,321 13,641 14,875 1,233 Current Assets 6,127 6,386 7,646 1,260 96.0% Cash and Equivalents 938 1,510 894 -616 Short-term Investments* 1,190 638 1
Slide 6: Results & Outlook by Business: Korea Zinc (Standalone)
Results & Outlook by Business Korea Zinc (Standalone) KZ Trading Sun Metals Corporation Sales by Product (bn KRW) 2,258 1,988 2,029 7% 1,906 4% 4Q Results 1,814 8% 8% 10% 8% 5% 5% 5% 7% • Rise in metal prices and increased sales 9% 9% 5% 9% 기타 Others 9% volume of zinc and lead, along with strong 28%
Slide 7: Results & Outlook by Business: Other Metals
Results & Outlook by Business Korea Zinc (Standalone) KZ Trading Sun Metals Corporation Sales by Product (Other Metals) (bn KRW) 57 53 2% 8% 2% 4Q Results 9% 6% 42 8% 7% 3% • Rise in antimony and other metals price 6% 9% 16% 기타 Others 33 10% with strong USD led to increased sales 비스무스 Bismuth 5% 29
Slide 8: Results & Outlook by Business: KZ Trading
Results & Outlook by Business Korea Zinc (Standalone) KZ Trading Sun Metals Corporation Sales by Product (bn KRW) 312.8 310.8 17.2 279.6 17.8 4Q Results 265.6 257.8 17.3 17.0 16.7 94.2 • Increase in sales volume due to the 125.2 기타 Others 106.0 easing of high-interest rates led to growth 94.8 기타금속 O
Slide 9: Results & Outlook by Business: Sun Metals Corporation
Results & Outlook by Business Korea Zinc (Standalone) KZ Trading Sun Metals Corporation Sales by Product (bn KRW) 205,269 4Q Results 194,076 25,270 33,725 3,984 154,165 • Drop in production and sales revenue due 143,655 3,333 8,183 4,877 9,160 to large-scale maintenance in 4Q 3,075 LGLC* and others
Slide 10: 2025 Business Plan
2025 Business Plan 2025 Business Plan Troika Drive update
Slide 11: 2025 Sales Plan (KZ Standalone)
2025 Business Plan 2025 Sales Plan (KZ Standalone) 2021 2021 2022 2022 2023 2023 2024 2024 Actual/ 2025 Plan Actual Plan Actual Plan Actual Plan Actual Target Plan Zinc 640,000 636,299 640,000 634,414 640,000 654,245 650,000 643,062 99% 630,000 (MT) Lead 426,000 429,022 430,000 422,463 430,000 410,9
Slide 12: Troika Drive update (Copper Capacity Expansion Plan)
Troika Drive update (Copper Capacity Expansion Plan) Expansion of copper capacity through the conversion of Fumer facilities. • The modification of Fumer #1 will add 35,000 tons of copper production capacity, expected to increase revenue by approximately KRW 450 billion • By utilizing secondary raw
Slide 13: Troika Drive update (Renewables)
Troika Drive update (Renewables) MacIntyre Wind Farm Project • Commercial operation of the MacIntyre Wind Farm (MWF) scheduled to begin in November 2025, accelerating Ark Energy’s renewable-IPP business model • Securing stable supply of large-scale clean power with economic viability • Accelerating
Slide 14: Troika Drive update (Secondary Battery Materials)
Troika Drive update (Secondary Battery Materials) All-In-One Nickel Smelter & KPC commercial operation • All-In-One Nickel Smelter scheduled to be completed by the end of 2026 and initiate full-scale nickel production (Ni Metal 43kt) • KPC, completed in 2024, began commercial operation in January (N
Slide 15: Troika Drive update (Secondary Battery Materials)
Troika Drive update (Secondary Battery Materials) KEMCO & KPC 2025 Business Plan • KEMCO's nickel sulfate sales increase is expected to drive 2025 revenue to KRW 382.5 billion (YoY +36%) and operating profit to KRW 10.8 billion (YoY +124%). • KPC, with the start of commercial production, 2025 revenu
Slide 16: EGM Results
EGM Results Voting Results by Agenda Item Expected Effect of Approved Agenda
Slide 17: Voting Results by Agenda Item
Voting Results by Agenda Item Item # Agenda Proposer Results Remarks No. 1 Partial amendment to the Articles of Incorporation - - Amendment to the Articles of Incorporation to adopt a cumulative voting system Yumi No.1-1 Approved (shareholder proposal by Yumi Development Co., Ltd.) Development Amend
Slide 18: Expected Effect of Approved Agenda
Expected Effect of Approved Agenda Agenda Overview Expected Effect • In cases where two or more directors are appointed, each • Increases the likelihood of minority shareholders securing No.1-1 Adoption of Cumulative voting shareholder will have voting rights equal to the number of directors represe
Slide 19: Appendix
APPENDIX Holding Structure Shareholder Return Policy Historical Sales Volume Metal Prices & FX Zinc TC & Earnings Sales Volume by Metal Sales Revenue by Metal Financials
Slide 20: Holding Structure
Holding Structure Holding Structure Shareholder Return Policy Historical Sales Volume Metal Prices & FX Zinc TC & Earnings Sales Volume by Metal Sales Revenue by Metal Financials Holding Structure Smelting Renewables & Hydrogen Secondary Battery Materials Resource Recycling KOREA ZINC % Equity Stake
Slide 21: Shareholder Return Policy
Shareholder Return Policy Holding Structure Shareholder Return Policy Historical Sales Volume Metal Prices & FX Zinc TC & Earnings Sales Volume by Metal Sales Revenue by Metal Financials Historical Shareholder Return 총주주환원금액 Total Shareholder Return (bn) 397 403 주주환원율 Total Shareholder Return (%) 35
Slide 22: Historical Sales Volume
Historical Sales Volume Holding Structure Shareholder Return Policy Historical Historical Sales Volume Sales Volume Metal Prices & FX Zinc TC & Earnings Sales Volume by Metal Sales Revenue by Metal Financials Unit : 10kt(Zinc, Lead), 100t(Silver), %(Actual/Target) 102% 99% 99% 99% 16 65 64 19 64 64
Slide 23: Metal Prices & FX
Metal Prices & FX Holding Structure Shareholder Return Policy Historical Sales Volume Metal Metal Prices & Prices & FX FX Zinc TC & Earnings Sales Volume by Metal Sales Revenue by Metal Financials USD/KRW (Avg.) Zinc (USD/MT) Lead (USD/MT) 1,450 1,450 1,450 1,500 1,450 1,450 3,500 3,049 2,400 2,400
Slide 24: Metal Prices & FX
Metal Prices & FX Holding Structure Shareholder Return Policy Historical Sales Volume Metal Metal Prices & Prices & FX FX Zinc TC & Earnings Sales Volume by Metal Sales Revenue by Metal Financials LME Price & Raw Materials Cost Trend (USD/t) Zinc Lead 4,000 3,000 3,500 Loss from LME price decline 2,
Slide 25: Zinc TC & Earnings
Zinc TC & Earnings Holding Structure Shareholder Return Policy Historical Sales Volume Metal Prices & FX Zinc TC & Earnings Sales Volume by Metal Sales Revenue by Metal Financials Benchmark TC, FX & OP (Standalone) (bn KRW, USD/t) 3,485 8,081 8,089 2,894 2,925 7,163 7,291 2,779 3,005 2,649 2,549 5,5
Slide 26: Sales Volume by Metal
Sales Volume by Metal Holding Structure Shareholder Return Policy Historical Sales Volume Metal Prices & FX Zinc TC & Earnings Sales Volume by Metal Sales Revenue by Metal Financials KZ (Standalone) 4Q23 1Q24 2Q24 3Q24 4Q24 QoQ YoY Zinc(MT) Domestic 49,188 60,305 59,526 62,097 67,885 9.3% 38.0% Expo
Slide 27: Sales Revenue by Metal
Sales Revenue by Metal Holding Structure Shareholder Return Policy Historical Sales Volume Metal Prices & FX Zinc TC & Earnings Sales Volume by Metal Sales Revenue by Metal Financials KZ (Standalone) (bW) 4Q23 1Q24 2Q24 3Q24 4Q24 QoQ YoY Zinc Domestic 179 216 234 254 295 16.0% 64.5% Export 398 381 3
Slide 28: Financials
Financials Holding Structure Shareholder Return Policy Historical Sales Volume Metal Prices & FX Zinc TC & Earnings Sales Volume by Metal Sales Revenue by Metal Financials Korea Zinc (Consolidated) KZ Trading PL (bn KRW) 4Q23 1Q24 2Q24 3Q24 4Q24 QoQ YoY PL (bn KRW) 4Q23 1Q24 2Q24 3Q24 4Q24 QoQ YoY S
Slide 29: IR contact
APPENDIX IR contact [email protected]