For the fiscal year ending September 30, 2011, the United States Mint generated total revenue of $4.97 billion, yielding total seigniorage and net income of $527.8 million. Compared to the prior year, revenue was up by 27.87% and seigniorage and net income increased by 30.06%.
The US Mint operates six facilities and has approximately 1,800 employees. Their mission is to manufacture and distribute circulating coins, precious metals, collectible coins, and national medals to meet the needs of the United States. Revenue is generated through the sales of circulating coins to Federal Reserve Banks, the sale of bullion coins to authorized purchasers, and the sale of numismatic products to the public.
For the 2011 fiscal year, demand for circulating coinage rebounded after reaching the lowest levels in decades in the previous year. The costs to manufacture the cent and nickel rose to more than twice the face value, although seigniorage generated from other denominations offset the losses. Bullion coin sales achieved a record high in unit volume, dominated by sales of the American Silver Eagle. Revenue from the sale of numismatic products showed the strongest increase compared to the prior year, with net income more than doubling. The gains were driven by the release of both 2010 and 2011-dated Proof Silver Eagles during the fiscal year, the earlier release of annual sets, and new product launches.
This week Coin Update News will be providing additional detailed coverage of the 2011 financial results for each segment.
- Circulating Coin Shipments Rise 37%, Unit Cost of $1 Coin Drops to 18 Cents
- Bullion Product Revenue Reaches Record $3.47 Billion
- Numismatic Program Revenue and Profits Surge
United States Mint Revenue
| (dollar in millions) | FY 2011 | FY 2010 | Change |
| Circulating Coins | $776.9 | $618.2 | 25.67% |
| Bullion Program | $3,471.4 | $2,855.4 | 21.57% |
| Numismatic Program | $721.7 | $413.1 | 74.70% |
| Total | $4,970.0 | $3,886.7 | 27.87% |
United States Mint Seigniorage and Net Income
| Seigniorage and Net Income | FY 2011 | FY 2010 | Change |
| Circulating Seigniorage | $348.8 | $300.8 | 15.96% |
| Bullion Program Net Income | $65.8 | $55.2 | 19.20% |
| Numismatic Net Income & Seigniorage | $113.2 | $49.8 | 127.31% |
| Total | $527.8 | $405.8 | 30.06% |
Despite the increase in seigniorage and net income, the US Mint transferred only $51 million to the Treasury General Fund. This was down dramatically from the previous year and attributed to uncertainties in future cash flow from circulating coin operations.
Hey Michael – I’m looking forward to reading your detailed analysis. In considering that 2011 also included price increases across multiple product lines, I will be curious as to the sales volumes of like products between the respective years. Granted, it’s a bit of a mixed bag, as sales of some 2010 products continued well into 2011 while the majority of those manufacturing costs were charged in 2010. However, I seem to think that the larger part of the positive cash flow can be tied to price increases, more so than volumetric increases.
Also, will you be including some comments on the revised, “collector” production of 2012 circulating $1coins, and the potential impacts those reduced numbers will have on – what has been – the largest part of the Mint’s annual accumulated Seiniorage?? If the annual volumes of Bagged and Rolled $1 Coin sales are any indicator, seiniorage will take a big hit, but so will the collectors when the Mint increases the pricing of these products in an effort to recover the manufacturing costs. We probably will not see the increases with the Arthur coins; definitely by the 3rd and 4th release.
Thanks for a great 2011. 2012 should be another busy year!!
I hope that the website works better this year then it did for the 2011 25th Anniversary Silver Eagle Set(s).
Mint management should be totally ashamed and embarrassed for setting the 5 sets per order: not to mention the way so many were shut out of ordering while the “big boys and friends” received hundreds of sets. Just go on-line and you can see it from EBAY to “BIG BOYZ” sites.
Somehow top management left out common sense in their decision practice. I tried around 150 times on-line, and another 150 times via the phone. I did not get through for over six hours.
I agree about the 25th anniversary set.
The limit should have been one. I tried
calling numerous times no luck. Then to
read some of the posts here on Coin Update. From the people who got through and got there
5 sets. Basically literally pulverizing the
ones that didn’t. Talking about greed and whats mine is mine attitude. I think the posting for the sold out anniversary set has
the most number of responces than any other.