OTTAWA, ON, Aug. 18, 2023 /CNW/ – The Royal Canadian Mint (the “Mint”) is pleased to announce its financial results for the second quarter of 2023 that provide insight into its activities, the markets influencing its businesses and its expectations for the next 12 months.
“Our long-term strategy continues to allow us to seize opportunities as they arise and grow our business for Canada and Canadians,” said Marie Lemay, President and CEO of the Royal Canadian Mint. “I congratulate employees for working together to meet customer bullion demand with continuous agility and develop new collector coin programs that are answering the needs of our diverse customer base.”
The financial results should be read in conjunction with the Mint’s annual report available at www.mint.ca . All monetary amounts are expressed in Canadian dollars, unless otherwise indicated.Financial and Operational Highlights
- The financial results for the second quarter of 2023 were stronger than expected as the Mint continued to respond with agility to the stronger than expected demand in the global bullion market in 2023. The success of the numismatics products celebrating the reign of Queen Elizabeth II and the coronation of King Charles III further supported the Mint’s financial results for the quarter. Profit margins were higher in the second quarter of 2023 supported by higher gold market pricing and a more favourable mix of business compared to the second quarter of 2022. The Mint expects to exceed its financial goals for 2023, as set out in the Mint’s Corporate Plan.
- Consolidated revenue decreased to $711.6 million in 2023 (2022 – $841.9 million).
Revenue from the Precious Metals business decreased to $686.8 million in 2023 (2022 – $793.6 million):- Gold bullion volumes decreased 5% quarter over quarter to 339.2 thousand ounces (2022 – 357.0 thousand ounces) while silver bullion volumes decreased 6% to 9.1 million ounces (2022 – 9.6 million ounces).
- Sales of numismatic products increased 14% quarter over quarter.
Revenue from the Circulation business decreased to $24.8 million in 2023 (2022 – $48.3 million):
- Revenue from Canadian coin circulation products and services decreased 10% quarter over quarter as less coins were required to replenish inventories.
- Revenue from the Foreign Circulation business decreased 89%, quarter over quarter, a reflection of significantly lower volumes produced and shipped in 2023 as compared to 2022 due to the on-going geopolitical tensions and economic uncertainties in the global economy.
- Overall, operating expenses increased 10% quarter over quarter to $32.7 million (2022 – $29.7 million) mainly due to a planned increase in employee compensation, higher corporate donations driven by shareholder directed donations, and a planned temporary increase in consulting expenses to support the digital program.
- Cash and cash equivalents and short term investment increased to $95.0 million (December 31, 2022 – $79.3 million).
Consolidated results and financial performance
(in millions)
| 13 weeks ended | 26 weeks ended | |||||||
| Change | Change | |||||||
| July 1, 2023 | July 2, 2022 | $ | % | July 1, 2023 | July 2, 2022 | $ | % | |
| Revenue | $ 711.6 | $ 841.9 | (130.3) | (15) | $ 1,481.3 | $ 1,706.9 | (225.6) | (13) |
| Profit for the period | $ 8.3 | $ 2.4 | 5.9 | 246 | $ 20.8 | $ 16.8 | 4.0 | 24 |
| Profit before income tax and other items 1 | $ 14.8 | $ 14.5 | 0.3 | 2 | $ 32.1 | $ 30.3 | 1.8 | 6 |
| Profit before income tax and other items margin2 | 2.1 % | 1.7 % | 2.2 % | 1.8 % | ||||
| (1) | Profit before income tax and other items is a non-GAAP financial measure. A reconciliation from profit for the period to profit before income tax and other items is included on page 12 of the Mint’s 2023 Second Quarter Report. |
| (2) | This is a non-GAAP financial measure and its calculation is based on profit before income tax and other items |
| As at | ||||||
| July 1, 2023 | December 31, 2022 | $ Change | % Change | |||
| Cash and cash equivalents and short term investment | $ | 95.0 | $ | 79.3 | 15.7 | 20 |
| Inventories | $ | 68.8 | $ | 56.2 | 12.6 | 22 |
| Capital assets | $ | 160.7 | $ | 152.5 | 8.2 | 5 |
| Total assets | $ | 393.2 | $ | 380.2 | 13.0 | 3 |
| Working capital | $ | 122.3 | $ | 105.3 | 17.0 | 16 |
As part of its enterprise risk management program, the Mint continues to actively monitor its global supply chain and logistics networks in support of its continued operations. Despite its best efforts, the Mint expects that changes in the macro-economic environment and other external events around the globe to continue to impact its performance in 2023. The Mint continues to mitigate potential risks as they arise through its enterprise risk management process.
To read more of the Mint’s Second Quarter Report for 2023, please visit www.mint.ca.About the Royal Canadian Mint
The Royal Canadian Mint is the Crown corporation responsible for the minting and distribution of Canada’s circulation coins. The Mint is one of the largest and most versatile mints in the world, producing award-winning collector coins, market-leading bullion products, as well as Canada’s prestigious military and civilian honours. As an established London and COMEX Good Delivery refiner, the Mint also offers a full spectrum of best-in-class gold and silver refining services. As an organization that strives to take better care of the environment, to cultivate safe and inclusive workplaces and to make a positive impact on the communities where it operates, the Mint integrates environmental, social and governance practices in every aspect of its operations.
For more information on the Mint, its products and services, visit www.mint.ca. Follow the Mint on LinkedIn, Facebook and Instagram.FORWARD LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES
This Earnings Release contains non-GAAP financial measures that are clearly denoted where presented. Non-GAAP financial measures are not standardized under International Financial Reporting Standards (IFRS) and might not be comparable to similar financial measures disclosed by other corporations reporting under IFRS.
This Earnings Release contains forward-looking statements that reflect management’s expectations regarding the Mint’s objectives, plans, strategies, future growth, results of operations, performance, and business prospects and opportunities. Forward-looking statements are typically identified by words or phrases such as “plans”, “anticipates”, “expects”, “believes”, “estimates”, “intends”, and other similar expressions. These forward-looking statements are not facts, but only estimates regarding expected growth, results of operations, performance, business prospects and opportunities (assumptions). While management considers these assumptions to be reasonable based on available information, they may prove to be incorrect. These estimates of future results are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what the Mint expects. These risks, uncertainties and other factors include, but are not limited to, those risks and uncertainties set forth in the Risks to Performance section of the Management Discussion and Analysis in the Mint’s 2022 annual report, as well as in Note 9 – Financial Instruments and Financial Risk Management to the Mint’s Audited Consolidated Financial Statements for the year ended December 31, 2022. The forward-looking statements included in this Earnings Release are made only as of August 16, 2023, and the Mint does not undertake to publicly update these statements to reflect new information, future events or changes in circumstances or for any other reason after this date.
SOURCE Royal Canadian Mint