August 20, 2014

Royal Canadian Mint Revenue Falls 36.1% in Third Quarter

The Royal Canadian Mint saw revenue decline by 36.1% and profit fall by 44.4% during the third quarter of fiscal 2012. The declines were driven by continued weakness in demand and strong global competition in the global bullion market. This was partially offset by the exceptional performance of the numismatic segment which saw revenue increase by 46.5% compared to the year ago period.

During the quarter, the Bullion, ETR and refinery segment posted revenue of $531.6 million, down by 39.7% from the prior period. Sales of Gold Maple Leaf bullion coins for the quarter were 159,000 ounces compared to 341,000 ounces in the prior period, representing a decline of 53.4%. Sales of Silver Maple Leaf bullion coins were 4.8 million ounces compared to 6.1 million ounces in the prior period, representing a decline of 21.3%.

For the 39 weeks ended September 29, 2012, Gold Maple Leaf sales were 465,000 troy ounces, down 45% from the prior year period. Silver Maple Leaf sales were 12.8 million ounces, down 27% from the prior year period.

Royal Canadian Mint Revenue by Business Line (in millions)

Q3 2012 Q3 2012 Change
Canadian Circulation 39.5 40.6 -2.7%
Foreign Circulation 4.8 6.7 -28.4%
Numismatics 31.8 21.7 46.5%
Bullion, ETR and Refinery 531.6 882.3 -39.7%
Total 607.7 951.3 -36.1%

Overall revenue from the Canadian circulating segment remained relatively steady during the quarter, although there were some underlying shifts. Revenue from production of coins showed a decline of $6.3 million to $29.2 million for the quarter. This was almost completely offset by an increase in revenue from the Alloy Recovery Program, which was up by $5.1 million to $10.3 million for the quarter. The increase was driven by the launch of a program to recover the alloy from $1 and $2 coins, following the launch of the next generation multiply plated steel versions.

Revenue from foreign circulation coinage fell by 28.4% to $4.8 million. The Royal Canadian Mint cited the economic crisis in Europe, which has reduced the demand for coinage and created a surplus in global minting capacity.

The numismatic segment continues to be a bright spot in the Mint’s financial performance. Revenue increased by 46.5% to $31.8 million for the quarter. The Mint issued 37 new products and achieved 15 sell outs during the quarter. Notable releases included an array of products issued as a “Farewell to the Penny” which included a 1/25 ounce gold coin, 1/2 ounce silver coin with selective gold plating, 5 ounce silver coin, and a silver five coin set featuring all of the designs of the cent through Canadian history.

Across all segments, revenue for the quarter was $607.7 million, down 36.1% from the prior year period. Profit for the quarter was down by 44.4% to $7.4 million.


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Comments

  1. Richard Kearns says:

    Perhaps if the world governments went back to making Beauteful money insted of this crap looking stuff with pictures of dead politicians they could generate revenue by selling attractive bills insted of coins.

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