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Despite these difficult business situations, Korea Zinc
was able to maintain more stable revenue than in any other
global smelter by maximizing productivity with persistent
R&D and investment, as well as cost-reduction efforts
by every employee of our company.
Korea Zinc produced 445,000tonnes of refined zinc and
198,000 tonnes of refined lead in 2008 and production
in other metals such as silver, and copper was similar
to that in 2007. Although all metal production increased,
during 2008 our financial performance of Korea Zinc
was slightly lower than the previous year. 2008 total
sales were 2,454 billion Won, and operating profit was
493billion Won with net profit achieved at 283 billion
Won.
The fall in net profit was mainly due to the increased
foreign exchange losses.
Our 2009 objectives include revenue sales of 1,510
billion Won ~ 1,770 billion Won by producing 410,000tonnes
of refined zinc and 200,000tonnes of refined lead, which
on the whole shows a 10% reduction in production output
compared to last year. Our conservative sales forecasts
are due to weakening base metals LME prices.
Market and consumption uncertainty plus volatility
of global business environment during 2009 will challenge
our operational ability to achieve our objectives.
With the uncertainties in the metals market over the
next 12 months and the fluctuating commodity prices,
we look forward to the continued support from all Korea
Zinc employees to improve our productivities and efficiency
to carry us through these difficult times.
We wish all our employees good health and wellbeing
for the future.
Yours faithfully,
C.k. Choi
Chairman and CEO
February 28,2009
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