The Royal Canadian Mint (the "Mint") is pleased to announce its financial results for the second quarter of 2022 that provide insight into its activities, the markets influencing its businesses and its expectations for the next 12 months.
"The Mint continues to demonstrate resilience and stability by generating strong results in the midst of challenging market conditions," said Marie Lemay, President and CEO of the Royal Canadian Mint. "The outstanding response to our new Opulence Collection has introduced the Mint to a new category of customers. We will continue to meet customer needs across all our businesses as we strive to reach new audiences and seize new opportunities."
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 2022 are as expected given the exceptional performance seen in 2021, and planned operational maintenance in 2022. The Mint expects to exceed its financial goals for 2022, as set out in the Mint's Corporate Plan.
- Compared to 2021, which yielded singular results, the Mint had 12% lower revenue while overall profitability decreased quarter over quarter from lower gold bullion volumes and planned higher operating expenses.
- Consolidated revenue decreased to $841.9 million in 2022 (2021 - $953.5 million).
- Revenue from Precious Metals businesses decreased to $793.6 million in 2022 (2021 - $905.4 million):
- Gold bullion volumes decreased 20% to 357.0 thousand ounces (2021 - 448.7 thousand ounces) while silver bullion volumes increased 8% quarter over quarter to 9.6 million ounces (2021 - 9.0 million ounces).
- Sales of numismatic products increased to $31.9 in 2022 (2021 - $24.8 million) due to higher sales from the Mint's new Opulence coin collection, international resale coins and premium bullion products.
Revenue from Circulation businesses increased to $48.3 million in 2022 (2021 - $48.1 million): - Revenue from Canadian coin circulation products and services increased 14% quarter over quarter from coin production to replenish the Canadian circulation inventory levels held on behalf of the Department of Finance as well as an increase in ARP metric tons processed during the period
- Revenue from the Foreign Circulation business decreased 11% quarter over quarter due to lower volumes produced and shipped in 2022 as compared to 2021.
- Overall, operating expenses increased 13% quarter over quarter to $29.7 million (2021 - $26.2 million) mainly due to planned temporary and non-temporary increases in expenses to support business transformation, an inclusive and engaged workforce, and to reconnect with the Mint's customers around the world.
- Cash increased to $86.6 million (December 31, 2021 - $69.3 million).
- Consolidated results and financial performance
As part of its business continuity plan, 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 COVID-19 and emerging variants, inflation, as well as other external events around the globe, to continue to impact its performance in 2022. The Mint continues to mitigate potential risks as they arise and prioritize the health and safety of its employees, adjusting its work protocols as required by the provinces and the local health authorities.
To read more of the Mint's Second Quarter Report for 2022, 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 recognized as one of the largest and most versatile mints in the world, offering a wide range of specialized, high-quality coinage products and related services on an international scale. For more information on the Mint, its products and services, visit www.mint.ca. Follow the Mint on Twitter, 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 2021 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, 2021. The forward-looking statements included in this Earnings Release are made only as of August 17, 2022, 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.
Please contact: Alex Reeves, Senior Manager, Public Affairs, Tel: (613) 884-6370, reeves@mint.ca