Korea Zinc(010130) is showing a double-digit gain early in the session on expectations of rising international metal prices and growth in the rare metals business.
As of 9:59 a.m. on the 20th, Korea Zinc is trading at 1,266,000 won, up 121,000 won (10.57%) from the previous session.
The broad rise in international metal prices appears to have lifted investor sentiment. On the London Metal Exchange (LME), the spot price of zinc rose 7.35% to $3,802.86 per ton at the close of trading. On the New York Mercantile Exchange, December gold futures also finished up 2.8% at $4,545.30 per ounce. After the U.S. Treasury decided to expand long-term Government Bonds buybacks, long-term yields fell and precious metal prices also climbed.
Positive assessments also came from the securities industry. Sangsangin Investment & Securities initiated coverage on Korea Zinc with a "buy" rating and set a target price of 1.53 million won.
Kim Jin-beom, a researcher at Sangsangin Investment & Securities, said, "Despite concerns over a sharp drop in precious metal prices, the company held up in the second quarter thanks to the exchange rate, copper, and rare metals," and noted, "The growth potential of the rare metals business driven by expanded AI and infrastructure investment also deserves attention."
Korea Zinc's consolidated operating profit in the second quarter of this year came to 587.1 billion won. On a separate basis, operating profit was 589.1 billion won, and the operating margin was 14.6%. Rare metals sales also remained solid at 97.0 billion won.