Royal Canadian Mint Q2 financial report shows profitability
Ottawa – While slightly below the same period in 2014, results of $34.9 million in pre-tax profits for the Royal Canadian Mint's second quarter demonstrate another quarter of strong performance, the Mint said in a news release.
The Royal Canadian Mint has announced consolidated revenues of $572.4 million in the 13 weeks ended June 27, 2015, and consolidated profit before taxes of $32.7 million in publishing its 2015 Second Quarter Financial Report.
Canadian circulation coin production volumes climbed to 239.1 million in Q2 2015, compared to 67.8 million in Q2 2014. This rise in production restores low-denomination circulation coin inventories, which were allowed to decline as the Mint continued to gauge the impact on demand for those coins in the wake of the penny’s elimination. The increase also accounts for higher forecasted demand prompted in part by the Toronto 2015 Pan Am/ParaPan Am Games.
Lower Foreign Business Line revenues have been offset by increased revenues in the Mint’s Alloy Recovery Program and its Numismatics and Collectibles Business Line, while Bullion, Refinery and ETR continue to generate steady sales.
"The Mint’s diversified business model continues to produce the stability and profitability needed to generate value for our shareholder and the people of Canada," said Sandra L. Hanington, president and chief executive officer of the Mint. “As we build the future of the Mint, we are encouraged to see growth in our Numismatics and Collectibles business while other sectors continue to contribute positively to the Mint’s bottom line.”
While the conclusion of a major contract at the end of 2014 and delays in the releases of anticipated tenders have decreased Foreign Business Line revenues in the first half of 2015, the Mint has produced and shipped coins and blanks to 12 countries, compared to only eight in the first 26 weeks of 2014. The Mint continues to leverage its superior technology to win new business, including its first contract with Indonesia, which became the 33rd international customer to adopt mutli-ply plated steel technology.
Bullion, Refinery and ETR revenues continue to be strong at $485.8 million in the second quarter of 2015. Thanks to sustained demand for Gold and Silver Maple Leaf bullion coins, total gold and silver bullion sales volumes are up 1.8 % and 2.0% respectively compared to the previous year.
Numismatics and collectibles revenues increased 9.2 per cent in Q2 2015 to $46.4 million, compared to $42.5 million in the second quarter of 2014. The number of sold-out products also rose to 19 in the quarter as collector coins featuring Looney Tunes characters and iconic Superman comic book covers proved very popular with customers.