RCM cites foreign circulation, bullion services for strong second-quarter performance

The Royal Canadian Mint reported a profit before tax of $6.4 million in the second quarter of this year.

“By capitalizing on opportunities in areas of our business such as Foreign Circulation and Bullion services, as well as soundly managing our costs, the Mint continues to demonstrate its ability to deliver solid profits even as other businesses face challenging market conditions,” said Jennifer Camelon, interim president and CEO of the Mint, which recently released its financial results for the 13 and 26 weeks ended June 30.

“These results indicate that the Mint is managed well, and with a new Memorandum of Understanding in place for producing Canada’s circulation coins, we are even better positioned to keep delivering on our strategy.”

FINANCIAL, OPERATIONAL HIGHLIGHTS

  • Consolidated profit before income tax and other items was $6.4 million for the quarter (compared to $8.9 million last year) and the profit margin remained constant at two per cent quarter over quarter.
  • Consolidated profit for the period was $5.9 million for the quarter (compared to $5.3 million last year).
  • Consolidated revenue declined to $260.7 million in the second quarter (compared to $401.6 million in 2017) as lower overall bullion global market demand continues to lead to lower volumes.
    • Gold bullion volumes were 99,000 ounces (compared to 124,000 last year) while silver bullion volumes were 3.3 million ounces (compared to 4.5 million ounces last year).
    • Bullion ancillary services revenue increased 61 per cent quarter over quarter as these services continue to expand. “The increase in Bullion ancillary services has allowed us to effectively manage the overall costs of the Bullion business during the current market conditions,” reads a statement issued by the Mint this week.
    • Shipment of 257 million foreign coins and blanks in the quarter (compared to 294 million last year) combined with higher revenue per coin resulted in an increase in revenue from the foreign circulation business as compared to the second quarter of 2017.
    • As expected, sales of numismatic products continued to be slower in the second quarter of 2018 having decreased to $28.8 million (compared to $45.3 million last year) after a strong year in 2017 driven by Canada 150.
    • Canadian circulation coin production was 202 million pieces in the quarter (compared to 258 million pieces last year). In June 2018, the Mint signed a new memorandum of understanding with the Department of Finance effective as of Jan. 1 through Dec. 31, 2021.
  • Operating expenses decreased 20 per cent quarter over quarter to $23 million (compared to $28.6 million last year) as the Mint “continues to carefully manage expenses,” it stated in its recent report.

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

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