RCM reports Q3 2018 profits

The Royal Canadian Mint reported a profit “before income tax and other items” of $10.5 million for the third quarter of 2018, down slightly from the same period last year, while the profit margin remained consistent at three per cent quarter over quarter.

As expected, sales of numismatic products continued on a downward trend in the third quarter, decreasing to $24.5 million (compared to $43.4 million last year) after a strong year in 2017 driven by Canada 150 product sales. In particular, sales of silver and base metal numismatic products are down 47 per cent quarter over quarter.

“The Mint continues to achieve steady profitability despite factors challenging some of our businesses,” said Jennifer Camelon, interim president and CEO of the Mint. “Through sound cost controls, new contracts in refinery and bullion storage services, as well as increased foreign circulation revenue, the Mint is performing well after three quarters and is poised for a strong finish to 2018.”

Gold bullion volumes increased to 156,000 ounces (compared to 135,000 ounces last year) while silver bullion volumes were 4.7 million ounces (compared to five million last year). Bullion ancillary services revenue doubled quarter over quarter as these services continue to expand, which “continues to allow us to effectively manage the overall costs of the Bullion business during the current market conditions,” according to a statement issued by the Mint last week.

Shipment of 346 million foreign coins and blanks in the quarter (compared to 296 million in 2017), combined with higher revenue per coin, resulted in an increase in revenue from the Mint’s foreign circulation business as compared to the third quarter of 2017.

Canadian circulation coin production was 304 million pieces in the quarter (compared to 421 million pieces in 2017).

FINANCIAL, OPERATIONAL HIGHLIGHTS

  • Consolidated profit before income tax and other items was $10.5 million for the quarter (compared to $10.6 million in 2017).
  • Consolidated profit was $2.8 million for the quarter (compared to $7 million in 2017).
  • Consolidated revenue declined to $370.9 million in the third quarter (compared to $385.9 million in 2017) as last year’s revenue was supported by the success of the Canada 150 numismatic campaign.
  • Operating expenses decreased 23 per cent quarter over quarter to $21.1 million (compared to $27.5 million in 2017) as the Mint “continues to carefully manage expenses.”

 

To read more of the Mint’s third-quarter report, visit mint.ca.

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