The Royal Canadian Mint reported a surge in revenue and profitability for the second quarter of 2013. Revenue increased by 93.8% to $1.05 billion, while profit increased 93.0% to 11.0 million. This represented the first time in the Mint’s history that quarterly revenue exceeded $1 billion.
The strong results were driven by a sharp increase in bullion demand, the accelerated fulfillment of a major foreign circulating coin contract, and continued strong demand for numismatic products.
During the quarter, the Bullion, ETR, and Refinery business line generated revenue of $963.1 million, more than doubling the revenue from the year ago period. The volume of Gold Maple Leaf sales rose 144% to 403,000 ounces. Sales of Silver Maple Leaf coins rose by 60% to 6.4 million ounces.
The higher sales were driven by the decline in the market prices of the metals, which served to stimulate demand from institutional and retail investors. From a high of $1,693.75 in the first quarter, gold fell to a low of $1,192 in the second quarter. The price of silver had declined from a high of $32.23 in the first quarter to a low of $18.61 in the second quarter.
For the 26 weeks ended June 29, 2013, Gold Maple Leaf sales have reached 664,000 ounces, while Silver Maple Leaf sales have reached 12.1 million ounces.
Royal Canadian Mint Revenue by Business Line (in millions)
|Q2 2013||Q2 2012||Change|
|Bullion, ETR and Refinery||963.1||472.1||104.0%|
The Royal Canadian Mint produced and shipped 499.8 million coins and blanks to ten foreign countries during the second quarter. This was up significantly from the 135.1 million units shipped in the year ago period and drove a revenue increase of 124.1%. Despite a surplus in global mining capacity and a competitive marketplace, the Mint has managed to win significant contracts with both existing and new clients.
The numismatic segment continued to deliver strong results, with revenue of $40.7 million, representing an increase of 29.6% from the year ago period. During the quarter, the Mint released 51 new numismatic products and saw 13 sell outs. The most popular coins were those utilizing new technologies and special features such as ultra high relief, niobium, and glow in the dark application.
The Mint released its first “$100 for $100” fine silver coin during the quarter, building on the success of the “$20 for $20” silver commemorative program. The new $100 silver coin features an image of three Bison and carried a mintage of 100,000 pieces. A sell out was achieved within 26 days.
For the entire fiscal year, the Mint anticipates releasing 202 numismatic coins as they continue to build their customer base in existing markets and open new markets.