|
Mint reports record profit for 2009
By Bret Evans
The Royal Canadian Mint set a new record, with 2009 revenues of $2 billion, and a before tax profit of $68.6 million, according to the Crown corporation's 2009 annual report, released April 23.
While the report covers 2009, it includes some updates on 2008 mintages.
"The past year was one of outstanding accomplishment for the Mint, with every business line recording strong profits and all employees contributing to the revenues generated by our world-class organization," said Ian Bennett, master of the Royal Canadian Mint. "As we move forward, we will continue to be innovative, expand our customer base both in Canada and abroad and remain flexible to take advantage of emerging opportunities."
The RCM paid out a record dividend of $7 million to the Government of Canada, $1 million more than the past two years combined.
The results were the consequence of a continued strong demand for gold and silver bullion coins, as well as the popularity of numismatic and gift coins.
Gold bullion sales set a new record of 1,233.2 ounces compared with 896.7 ounces in 2008. That revenue totalled $1.7 billion, 64.6 per cent more than in the previous year. Much of that was the result of high gold values, since the volume of metal handled by the RCM went up by less than half that amount. The bullion market is an international one, and the report cautions that demand in this area is expected to decline as the global economy recovers.
Numismatic revenue, which in the annual report includes Olympic and gift coins, saw an increase in revenue of 7.1 per cent to $72.43 million.
"The impact of the recession on demand for numismatic products was mitigated by the widespread appeal of the Mint's Vancouver 2010 collector coins," the report explained.
During 2009, the Mint sold out 10 of the 67 new coins it introduced. Among the sold-out issues were the Proof dollar for the Montreal Canadiens' 100th anniversary, the one-ounce steppe bison platinum coin, a hologram set commemorating the 30th anniversary of the Gold Maple Leaf, and a $20 autumn showers silver coin with an imbedded crystal. Olympic coin sales were expected to continue through the early part of 2010. In this sector, the report indicates that demand would grow in a recovering market.
The numismatic division also includes medals. The RCM has contracts to produce medals for the Department of National Defence, and the Office of the Governor General.
Revenue from the production of Canadian circulating coins dropped slightly to $185.3 million in 2009 from $185.5 million in 2008. Slightly more than 1.4 billion circulating coins were struck in 2009, compared with more than two billion in 2008.
The smallest revenue sector was foreign coinage.
In 2009, the RCM produced 1.1 billion foreign coins for 18 countries, compared with 1.7 billion for 16 countries in 2008. Among the 2009 clients were Panama, Oman, and the Philippines. Revenue dropped to $65 million from $98.7 million.
The year was also one of innovation.
The Vancouver 2010 coloured circulating 25-cent coins were produced using automated vision systems to orient each coin as it moved along the production line to ensure the red colour was correctly applied. During the year, the RCM doubled the size of the colour painting line in Winnipeg. A new rolling mill was installed in Ottawa, along with a continuous casting furnace for gold kilo and silver 100-ounce bars. Over the past two years, the Mint has invested $2.6 million in research and development and now holds 14 patents.
The Mint also entered into a partnership with laser manufacturer FOBA to assist in customizing laser technology for the minting industry, in return for a share of licensing fees. Similar agreements already exist with UK-based Teer Coating Inc., and Jarden Zinc Products of the U.S.
The RCM's website traffic increased in 2009, with the number of unique visitors rising 68 per cent to two million. The Mint conducted 50,000 online transactions worth $9.2 million.
May 25 to June 7, 2010 issue of Canadian Coin News
| 
