[Weekly HOT Stocks] 'Korea Zinc' Gains Attention Amid Soaring Gold and Silver Prices

[Asia Economy Reporter Kum Boryeong] As gold and silver prices continued to rise, Korea Zinc attracted investors' attention throughout the week.

According to the Korea Exchange on the 26th, Korea Zinc closed at 395,500 KRW on the 24th.

Korea Zinc was highlighted as a beneficiary stock along with the rising international gold and silver prices. Korea Zinc obtains gold and silver during the smelting process of lead and resells them.

According to Mirae Asset Daewoo, Korea Zinc sold 2,028 tons of silver last year, recording sales of 1.215 trillion KRW. It sold 7.5 tons of gold, generating sales of 391 billion KRW. When gold and silver prices rise, earnings also increase. In 2012, the sales proportion of gold and silver even reached 51%. Although it varies depending on the ore grade, generally, 1 ton of zinc ore contains 0.5 tons of zinc and 300 grams of gold; 1 ton of lead ore contains 0.6 tons of lead, 2,500 grams of silver, and 10 grams of gold.

The international gold price, based on the New York Commodity Exchange (COMEX), recorded $1,815.90 per troy ounce on the 20th (local time). It steadily rose to $1,842.40 on the 21st, $1,864.10 on the 22nd, $1,889.10 on the 23rd, and $1,897.30 on the 24th. Considering it was $1,484.00 on March 20, it increased by more than 20% in four months.

Along with gold prices, silver prices also fluctuated. The international silver price was $20.12 per troy ounce on the 20th, rising to $21.50 and $23.08 on the 21st and 22nd, respectively. It was the first time in four years that silver prices exceeded $20 per troy ounce. Although there was a slight decline on the 23rd and 24th, prices remained above $20 per troy ounce at $22.95 and $22.81, respectively.

Accordingly, Korea Zinc's stock price also rose consecutively. The closing price was 363,500 KRW on the 20th, 369,000 KRW on the 21st, 398,500 KRW on the 22nd, and 403,500 KRW on the 23rd. On the 23rd, it even surged to 411,500 KRW during intraday trading.

Park Seongbong, a researcher at Hana Financial Investment, emphasized, "The rise in metal prices will act as a new momentum for Korea Zinc's stock price increase in the second half of the year."