The Royal Canadian Mint has released its 2018 financial results, which provide insight into its activities, the markets influencing its businesses and its expectations for the year ahead.
“The Mint has once again demonstrated its strength and resilience by outperforming its plan for 2018, even with a decrease in numismatics revenue, by seizing opportunities in foreign circulation and ancillary bullion services, while meeting its core obligation to reliably manage the production and distribution of Canada’s circulation coins,” said Marie Lemay, President and CEO of the Royal Canadian Mint. “I look forward to leading a solution-driven organization, where our creative and committed staff continue to drive our profitability and sustainability.”
The financial results are for the year ended December 31, 2018, and should be read in conjunction with the Company’s Annual Report. All monetary amounts are expressed in Canadian dollars, unless otherwise indicated.
Financial and Operational Highlights
- Consolidated profit before income tax and other items increased to $46 million for the year (2017 – $43.9 million).
- Consolidated profit for the period decreased to $35.1 million for the year (2017 – $36.1 million).
- Consolidated revenue decreased to $1,420.6 million in 2018 (2017 – $1,691.3 million) as lower overall bullion global market demand led to lower bullion volumes. Gold volumes were 523.0 thousand ounces (2017 – 618.4 thousand) while silver volumes were 18.4 million ounces (2017 – 18.5 million).
- Sales of numismatic products decreased in 2018 after the highly successful Canada 150 program concluded in 2017, resulting in a decrease in revenue of $55.4 million.
- Foreign circulation revenue increased 48% year over year, as the production and / or shipments of foreign coins and blanks increased to 1,820 million in 2018 (2017 – 1,522 million).
- After 2017 saw all circulating denominations redesigned in celebration of Canada 150, a smaller commemorative coin program in 2018, combined with reduced availability of recycled coins, resulted in decreased Canadian circulation net new coin production of 369 million pieces in the year (2017 – 560 million pieces).
- Operating expenses decreased 17% year over year to $93.8 million (2017 – $113.2 million) mainly due to planned lower spending on marketing activities in 2018. Savings were further achieved through lower employee compensation expenses and the reduced cost of consolidating office workspace in Ottawa.
- Cash increased to $66.4 million as of December 31, 2018 from $56.3 million as of December 31, 2017, which remains within the range of the level of cash required to support the Mint’s ongoing operations. In addition, the Mint declared and paid dividends to the Government of Canada in the amount of $10.0 million.
Consolidated results and financial performance
(in CAD $ millions for the years ended December 31, 2018 and 2017)
| Year ended | ||||
| December 31, 2018 | December 31, 2017 | $ Change | % Change | |
| Revenue | $ 1,420.6 | $ 1,691.3 | $ (270.7) | (16) |
| Profit before income tax and other items (1) | 46.0 | 43.9 | 2.1 | 5 |
| Profit for the period | 35.1 | 36.1 | (1.0) | (3) |
(1) A reconciliation from Profit for the period to Profit before income tax and other items is included on page XX of the Mint’s Annual Report for 2018.
| As at | ||||
| December 31, 2018 | December 31, 2017 | $ Change | % Change | |
| Cash | $ 66.4 | $ 56.3 | $ 10.1 | 17.9 |
| Inventories | 62.2 | 85.5 | (23.3) | (27.3) |
| Capital assets | 172.8 | 176.2 | (3.4) | (1.9) |
| Total assets | 397.8 | 377.8 | 20.0 | 5.3 |
| Working capital | 107.5 | 82.1 | 25.4 | 30.9 |
For more information on the Mint visit the Royal Canadian Mint website.
2018 saw some major events in the Royal Canadian Mint’s recent history:
In summer the CEO Sandra Hanington resigned.
By the end of 2018 the legal battle between the Royal Canadian Mint and the Royal Australian Mint was finally settled.
And now, early in 2019, a new master was appointed, Marie Lemay.
