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