April 23, 2014

United States Mint 2012 Financial Results

During the fiscal year ended September 30, 2012, the United States Mint generated revenue of $3.44 billion, yielding seigniorage and net income of $108.2 million. These results represent a decline in revenue of 30.88% and decline in seigniorage and net income of 60.55% compared to the prior year.

The United States Mint is the world's largest coin manufacturer, operating six facilities with approximately 1,800 employees. The Mint has operated under the Public Enterprise Fund since 1996, which enables the organization to operate without an appropriation.

The Mint generates revenue through the sale of circulating coins to Federal Reserve Banks, bullion coins to authorized purchasers, and numismatic products to the public. For the latest fiscal year, sharp declines were experienced across all three business lines.

Commenting on the results, Acting Director Richard A. Peterson said, "Our results in FY 2012 reflect a partial return to the norm when compared to the record revenue and net income results of FY 2011 and the dramatic swings we have experienced since FY 2009."

United States Mint Revenue

(dollar in millions) FY 2012 FY 2011 Change
Circulating Coins $493.3 $776.9 (36.50%)
Bullion Program $2,460.9 3,471.4 (29.11%)
Numismatic Program $481.2 $721.7 (33.32%)
Total $3,435.4 $4,970.0 (30.88%)

United States Mint Seigniorage and Net Income

Seigniorage and Net Income FY 2012 FY 2011 Change
Circulating Seigniorage $105.9 $348.8 (69.64%)
Bullion Program Net Income $28.4 $65.8 (56.84%)
Numismatic Net Income & Seigniorage $73.9 $113.2 (34.72%)
Total $208.2 $527.8 (60.55%)

During the 2012 fiscal year, the results of the circulating coin segment were significantly impacted by the Treasury Department decision to suspend production of the circulating Presidential $1 Coin in December 2011. Previously, the program generated substantial revenue and seigniorage for the Mint. The results of the bullion program were impacted by lower unit volumes for both gold and silver bullion, as well as lower silver prices. The numismatic segment was impacted by a decrease in gold and platinum product revenues and difficult comparisons due to the timing of certain releases in the previous year.

In FY 2012, the United States Mint transferred $77 million to the Treasury General Fund, primarily consisting of amounts earned from the numismatic and bullion segments. Amounts resulting from the sale of circulating coins were retained. According to the Mint, these amounts were required "to mitigate the risks of future potential economic uncertainty, the impacts to our circulating program from continued penny and nickel losses, and the loss of revenue from the suspension of $1 coin production."

This week Coin Update News will be providing additional detailed coverage of the 2011 financial results for each segment.

Circulating Coins: Penny Accounts for 64.2% of US Mint Circulating Coin Shipments
Bullion Program: Bullion Revenue Falls 29%, Silver Eagle Generates Loss
Numismatic Program: Numismatic Revenue Falls on Lower Gold and Platinum Sales


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Comments

  1. Leo S. says:

    Michael

    Any word on the Mint sales figures yet on collector coins?

  2. Coin Update says:

    I haven’t received any numbers yet. They might be late due to this week’s holidays.

  3. Leo S. says:

    Michael

    Thanks for the info.

  4. steve says:

    Next year will be very interesting especially on the GOLD first spouses and both the ATB 5 oz. coins as far as sales.

    We might see <1,500 to <2,000 on the FS and <12,000 to <15,000 on the ATB bullion and SP UNCs.

    When gold rises past $2,000 toward $3,000 or more mixed with a terrible expendable income throughout America we will see strange things.

  5. ho ho silver says:

    Huh ? What if ? Could be ? Might see ?

  6. ClevelandRocks says:

    I thought gold would be $2k by now, but I was wrong…

  7. Dan says:

    When will there be the next weekly us mint report of weekly sales?

  8. Coin Update says:

    I haven’t received any numbers yet. They might be late due to this week’s holidays.

  9. I’d been waiting to see the FYE 2012 results. I am rather surprised they managed to avoid an outright loss this year given how bad the nickel and penny have gotten for them. I’ll have to dig into the numbers later, and see how they managed to still turn a small profit.

    It’s interesting to see them provisioning for further losses from the nickel and penny, though. They must have some expectation of continued inaction from Congress or the Treasury to stem the losses. I sincerely believe 2013 would be the swan song for the penny and nickel but that is looking to be increasingly unlikely.

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