June 11, 2013 – Sales at the Royal Canadian Mint (RCM) fell by 18% to $2.6 billion in 2012, according to its Annual Report, while pre-tax profits fell by 3.3% to C$40.7m. The business units responsible for Numismatics and Collectibles, and Canadian Circulation, both performed well. But performance was down in Foreign Coinage and in Bullion and Refinery, the latter of which accounts for over 85% of sales.
Production of Canadian circulation coins fell from 1.5 billion in 2011 to 1.14 billion, despite which sales were up 11.6% to $152.m – a reflection, said the RCM, of fewer coins but higher value and margins.
There were two major events during the year – the end of production of the Canadian penny, and the introduction of new $1 ad $2 coins. The business was boosted by the Alloy Recovery Program, which generated sales of C$35.6m (compared with C$22.9m in 2011), partly due to the recovery of first generation dollar coins.
In the Foreign Coinage business (which includes circulating coins and blanks, numismatic products and medals for overseas markets), both volumes and revenues fell, in the latter case by 10.9% to C$30.3m. The RCM produced and shipped 903.3 million coins and blanks compared with 1.1 billion in 2011. The decline was attributed to intense competition due to the ongoing economic crisis in Europe, which depressed demand and hence created surplus capacity, which is being released onto the commercial market.
The result, said the RCM, was a ‘perfect storm – a decline in the volumes being tendered, more competitors and intensely competitive pricing combining to reduce revenue and profit margins.’
In spite of this and the relatively strong Canadian dollar, it secured 25 contracts during the year to produce circulating coins and blanks for 13 countries. A notable gain was the contract to produce Singapore’s new coins. It also secured consulting contracts with India and other countries in Asia.
This article was taken from the May issue of ‘CurrencyNews’.
For more information on the Royal Canadian Mint visit its website.
If you wish to download the complete Annual Report 2012 please click here.