The Royal Canadian Mint has once again demonstrated strong business performance thanks in part to strong bullion and numismatics sales.
According to the Mint’s 2015 Annual Report – entitled “Focused on the Future” – the Crown corporation broke even last year, paying its sole shareholder, the Government of Canada, “record dividends” of $53 million. Although a $65.5 million non-cash impairment charge offset some of the Mint’s profits – something caused by “lower than anticipated future cash flows” from its circulation businesses – there was still “strong cash generation,” according to the report.
“Overall, our 2015 financial results clearly show that the Mint is a robust and growing organization, with the strength to weather challenges and generate good value for Canadians,” said Sandra L. Hanington, Mint president and CEO. “Thanks to the hard work of our employees and a renewed strategic focus, the Mint is able to pursue more success in the future while supporting Canada’s economy and celebrating Canadian pride.”
The Canadian Circulation Program proved effective in managing the country’s coinage system throughout the past year. The supply of new circulation coins remained relatively unchanged in 2015 (392 million issued compared to 389 million in 2014), and the demand was met through coin recycling and the management of inventories held by major Canadian financial institutions.
The conclusion of a major multi-year contract and delays in the issuing of several international coin tenders lowered Circulation Products and Services revenues to $67.3 million in 2015 (compared to $92.6 million in the previous year, a decrease of $25.3 million). The decline in foreign sales was partially offset by an increase in Alloy Recovery Program revenues, which grew to $22.6 million in 2015 (compared to $19.8 million in 2014, an increase of $2.8 million).
Noteworthy 2015 business included a large supply of blanks to the Philippines as well as the Mint’s first-ever contract with Indonesia, which purchased a large volume of multi-ply plated steel blanks.
The Mint also introduced a new pad-printing technology for coin colouring through the launch of the New Zealand 50-cent Anzac 100th anniversary commemorative circulation coin. This award-winning technology made its Canadian debut on a 25-cent circulation coin celebrating the 50th anniversary of the Canadian flag as well as a 2015 coloured circulation coin launched in conjunction with a $2 circulation coin commemorating the 100th anniversary of John McCrae’s In Flanders Fields.
Bullion Products and Services revenues rose to $2.6 billion in 2015 (compared to $2.1 billion a year earlier) as the Mint ably responded to renewed demand for its industry leading bullion products. This translated into the sale of 953,000 ounces of gold and a record 34.3 million ounces of silver, establishing record silver sales for the third consecutive year.
The Mint also stood out in the field of coin security as it launched the commercial application of its Bullion DNA (Digital Non-destructive Activation) reader technology for facilitating the authentication of gold and silver Maple Leaf bullion coins.
Numismatics business revenues grew by more than 12 per cent last year to a new record of $199 million; according to the report, more than 70 of 243 collector coins sold out by year’s end. Increased demand for custom gold collector products helped the Mint sell almost 30 per cent more numismatic ounces of gold in 2015 compared to 2014. Notable products included the world’s first maple leaf-shaped coin, produced in fine silver; as well as other coins celebrating FIFA Women’s World Cup Canada; the Toronto Pan Am and Parapan American Games; Looney Tunes characters; and the 100th anniversary of the publication of McCrae’s famed war poem, In Flanders Fields.
To read more from the Mint’s 2015 Annual Report, visit mint.ca.