The Royal Canadian Mint has announced its financial results for the first quarter of 2021 that provide insight into their activities, the markets influencing our businesses and our expectations for the next 12 months.
“The Mint’s strong performance in the first quarter is a testament to the dedication, resilience and flexibility of its employees,” said Marie Lemay, President and CEO of the Royal Canadian Mint. “Throughout the COVID-19 pandemic, the Mint has continued to prioritize the health and safety of its employees while ensuring that critical services it provides to the essential mining and financial sectors continued uninterrupted. In the shadow of its pandemic response, the Mint began implementing a new long-term strategy, laying the groundwork for sustained profitability in the years to come.”
The financial results should be read in conjunction with the Mint’s 2021 first quarter report available online. All monetary amounts are expressed in Canadian dollars, unless otherwise indicated.
Financial and Operational Highlights
- The Mint increased its revenue by 81% in the first quarter of 2021 and consolidated profit before income tax and other items was $26.0 million (2020 – $6.5 million) for the quarter. The Mint saw increases in revenue across both its Precious Metal and Circulation businesses. The increase was mainly due to higher bullion volumes sold in the quarter, which increased the Mint’s revenue and cost of sales proportionately. The Mint’s profit margin percentage improved 1.6% quarter over quarter mainly due to stronger performance from the sales of numismatic products and foreign circulation coins in 2021.
- Consolidated revenue increased to $902.8 million in 2021 (2020 – $498.4 million). Revenue from Precious metal businesses increased to $852 million in 2021 (2020 – $465.2 million):
- Gold bullion volumes increased more than 65% quarter over quarter and were 328.5 thousand ounces (2020 – 198.1 thousand ounces) while silver bullion volumes increased 52% and were 9.9 million ounces (2020 – 6.6 million ounces).
- Sales of numismatic products increased to $31.5 million in 2021 (2020 – $21.3 million) as a result of an increase in sales of gold products in 2021 and the temporary suspension, in 2020, of numismatic product production as a result of COVID-19 pandemic.
Revenue from Circulation businesses increased to $50.8 million in 2021 (2020 – $33.1 million):
- Revenue from the Foreign Circulation business increased 162% quarter over quarter with production and shipment of 319 million foreign coins and blanks, compared to 265 million coins in 2020.
- Canadian circulation coins produced and sold to the Department of Finance for inventory were 77 million pieces in the quarter (2020 – 76 million pieces).
- Overall, operating expenses increased 15% quarter over quarter to $25.6 million due mainly to planned consulting and contingent workforce costs related to the implementation of the Mint’s business transformation initiatives.
- Cash and cash equivalents increased to $91.1 million (December 31, 2020 – $67.3 million).
Consolidated results and financial performance
(in CAD $ millions)
| 13 weeks ended | ||||
| April 3, 2021 | March 28, 2020 | $ Change | % Change | |
| Revenue | $ 902.8 | $ 498.4 | 404.4 | 81 |
| Profit before income tax and other items (1) | $ 26.0 | $ 6.5 | 19.5 | 300 |
| Profit before income tax and other items margin | 2.9% | 1.3% | ||
| Profit for the period | $ 13.8 | $ 1.7 | 12.1 | 712 |
(1) A reconciliation from Profit for the period to Profit before income tax and other items is included on page 11 of the Mint’s 2021 First Quarter Report.
| As at | ||||
| April 3, 2021 | December 31, 2020 | $ Change | % Change | |
| Cash and cash equivalents | $ 91,1 | $ 67.3 | 23.8 | 35 |
| Inventories | $ 60.8 | $ 57.6 | 3.2 | 6 |
| Capital assets | $ 159.1 | $ 161.1 | (2.0) | (1) |
| Total assets | $ 408.8 | $ 379.4 | 29.4 | 8 |
| Working capital | $ 134.2 | $ 112.9 | 21.3 | 19 |
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 to continue to affect its performance in 2021 especially in light of the declaration of emergency and province wide stay-at-home order in Ontario which began on April 8, 2021. The situations in Ontario and Manitoba continue to be monitored and the Mint will adapt its operations accordingly.
For further information, visit the Royal Canadian Mint website.
Here you can find the RCM annual report for 2020.
