The Royal Canadian Mint’s numismatics revenue decreased slightly in the first quarter of this year compared to the same period last year.
This according to the Mint’s recently released first-quarter financial report, which reports a three per cent decrease in numismatics revenue from $28 million to $27.3 million.
It cites the decrease in revenue as being “largely attributable to a six per cent decrease in the volume of silver and base metal numismatic production sold in 2019, compared to 2018.
UPDATED NUMISMATIC STRATEGY
The report also touches on the Mint’s implementation of its updated numismatics strategy.
“Investments in improved marketing and customer service capabilities and tools are being made in order for the numismatics business to profitably grow and service the Mint’s loyal and passionate customer base,” reads the report.”The Mint’s approach has shifted from an in-ward product focused perspective to an out-ward customer-focused approach. Its activities in Canada and the U.S. will continue, while maintaining ancillary markets such as Europe and Asia.”
The report adds the Mint “will also capitalize on its strong network of bullion dealers and distributors to cross-promote incremental numismatic opportunities.”
With the numismatic strategy’s implementation, the Mint is hoping “to build a strong, sustainable future for all of our businesses,” said Marie Lemay, Mint president and CEO.
“The Mint has demonstrated agility in this first quarter by capitalizing on market opportunities,” Lemay added. “Demand for gold and silver bullion is up, refining volumes are above plan and storage volumes remain steady and healthy.”
Administration expenses increased seven per cent, according to the report, “due to higher employee and consulting costs primarily to support the repositioning of the numismatic business and the on-going leadership team transition.”
FIRST QUARTER HIGHLIGHTS
Other financial and operational highlights of the Mint’s first quarter include:
- consolidated profit before income tax and other items of $10.8 million (compared to $6.8 million in 2018);
- consolidated profit of $7.7 million (compared to $4.8 million in 2018);
- consolidated revenue increased to $350.7 million (compared to $340.9 million in 2018) as higher overall bullion global market demand led to higher bullion volumes;
- gold volumes were 123,800 ounces (compared to 108,500 in 2018) while silver volumes were 5.5 million ounces (compared to 4.8 million in 2018);
- foreign circulation revenue decreased 53 per cent year over year with production and shipment returning to “more normal levels” at 194 million foreign coins and blanks compared to the “exceptional” year in 2018 with 505 million coins and blanks;
- Canadian circulation coin production was 70 million pieces (compared to 69 million in 2018);
- operating expenses remained consistent compared to the same period in 2018 at $22.4 million; and
- cash increased to $83.4 million (compared to 66.4 million on Dec. 31, 2018).
The Mint expects to pay a dividend to the Government Canada in the fourth quarter of this year from excess cash above the level of cash required to support the Mint’s ongoing operations.