Spear's Investment in Nickel Smelter Pushes Market Cap Close to 1 Trillion Won

Stable Supply of Strategic Mineral Nickel Secured Through 10% Stake in EII
Enhanced Supply Chain Management for Aerospace Special Alloys

KOSDAQ-listed company Spear Corporation soared to the upper price limit on the first trading day of the new year. Investors flocked to the stock following news that the company would invest in a stake in a nickel smelter, a key raw material facility for the aerospace industry. Amid the ongoing global restructuring of major raw material supply chains and rising geopolitical risks, investors anticipated that Spear would be able to secure a stable supply of nickel, a strategic mineral. The company decided on a large-scale equity investment, judging that this would help strengthen its business competitiveness.

According to the financial investment industry on January 5, Spear's share price has surged 382.7% over the past year since the beginning of last year. Its market capitalization has grown to 890 billion won. Over the past year, foreign investors and individual investors have made net purchases of 28.2 billion won and 13.3 billion won, respectively, driving the stock price higher. The average return per share for each group was 87.4% and 71.5%, respectively.

Spear is a specialized supplier of high-performance special alloy materials essential for the aerospace industry. The company manufactures key components for rocket launch vehicle engines and nozzles used by private space companies, which must maintain high heat resistance, corrosion resistance, and precision machinability even in extreme environments, through an original equipment manufacturing (OEM) process.

In the aerospace industry, even the slightest defect in a single component can lead to major accidents, making strict quality control across the entire supply chain essential. Spear has gone beyond simple material supply, establishing a rapid and flexible response system from the initial product development stage to mass production, and has secured unrivaled reliability through close collaboration with global special alloy manufacturers.

The recent acquisition of a stake in a nickel smelter is regarded as the culmination of such supply chain management. At the end of last year, Spear's subsidiary, Spear Nickel Cobalt, agreed to acquire a 10% stake in Excelsior International Investment (EII) for $240 million. EII operates a nickel smelter and sells alloys. The company is building a smelter in the Indonesia Morowali Industrial Park capable of producing 72,000 tons of nickel and cobalt annually.

A company official explained, "The smelter under construction will use the High-Pressure Acid Leach (HPAL) process, enabling large-scale production of 'Class 1 nickel,' which is essential for the aerospace and advanced manufacturing industries."

Spear's acquisition of a stake in the nickel smelter was positively received by the Yeouido securities community. Jeong Jisoo, a researcher at Meritz Securities, stated, "SpaceX began full-scale commercialization following the successful 11th flight test of Starship on October 13 last year. As Starship enters mass production, the benefits for domestic companies in the SpaceX value chain are expected to increase significantly."