The Royal Canadian Mint recently released its 2017 annual report, providing insight into the Crown corporation’s activities as well as the markets influencing its businesses and its expectations for the year ahead.
Mint President and CEO Sandra Hanington said profits increased in 2017, adding the Mint “is on solid financial ground, thanks to our dedicated employees who carry out the Mint’s mandate and business strategy with enthusiasm.”
“Strong results in our attractive and innovative collectible coins as well as our foreign business helped offset a softer global market for bullion in 2017,” she said.
Hanington also noted the Mint paid a record $93.2 million in dividends to the federal government in 2017.
“Mint staff work hard to earn the business of investors and collectors with award-winning designs, sophisticated security features and unique enhancements. Our 2017 $2 coin was the world’s first glow-in-the-dark circulation coin and it was recently named the most innovative circulating coin by the international Mint Directors Conference. We are committed to continue building on these successes in 2018.”
FINANCIAL, OPERATIONAL HIGHLIGHTS
Some highlights of the Mint’s 2017 financial results include:
- consolidated profit before income tax and other items increased to $43.9 million for the year (up from $30.7 million in 2016);
- consolidated profit for the period increased to $36.1 million for the year (up from $24.5 million in 2016);
- consolidated revenue decreased to $1,691.3 million in 2017 (down from $2,641.4 million in 2016) as lower overall bullion global market demand led to lower bullion volumes;
- gold volumes were 618.4 thousand ounces (down from 1,071.3 thousand ounces in 2016) while silver volumes were 18.5 million ounces (down from 34.7 million ounces in 2016);
- sales of numismatic products increased in 2017 on the success of the Canada 150 program, resulting in an increase in revenue of $25.7 million;
- the Canada 150 commemorative coin program, combined with reduced availability of recycled coins, resulted in increased Canadian circulation coin production of 560 million pieces (up from 533 million pieces in 2016);
- shipment of 1,522 million foreign coins and blanks in the year (down from 1,573 million pieces in 2016) resulted in consistent revenue from the foreign circulation business year over year;
- operating expenses remained consistent year over year at $138.5 million (up from $138.2 million in 2016); and
- in 2017, the Mint declared and paid dividends to the Government of Canada in the amount of $93.2 million. The payment of these dividends was the primary driver in the reduction of cash at Dec. 31, 2017 to $56.3 million, which is the level of cash required to support the Mint’s ongoing operations (from $114.2 million at Dec. 31, 2016).
To read more of the Mint’s 2017 annual report, click here.