OTTAWA,
ON, Nov. 24, 2023 /CNW/ - The Royal
Canadian Mint (the "Mint") is announcing its financial results for
the third quarter of 2023 that provide insight into its activities,
the markets influencing its businesses and its expectations for the
next 12 months.
"The Mint's projected 2023 financial performance is tracking to
target, despite the sudden and significant decline in global
bullion demand in the third quarter," said Marie Lemay, President and CEO of the Royal
Canadian Mint. "We expect that our strong performance in the first
half of 2023, combined with our agility to adapt to the realities
of a dynamic marketplace, will minimize the impacts of headwinds
and maximize 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 third quarter of 2023 were below
2022 levels primarily from lower bullion volumes due to weaker
demand in the global bullion market, higher precious metal costs
and higher operating expenses. Results were positively impacted by
the success of the numismatics products celebrating the reign of
Queen Elizabeth II and the
coronation of King Charles III, as
well as higher gold market pricing. The Mint expects to meet its
financial goals for 2023, as set out in the Mint's Corporate
Plan.
- Consolidated revenue decreased to $360.6
million in 2023 (2022 – $728.7
million).
Revenue from the Precious Metals business decreased to $328.4 million in 2023 (2022 – $687.2 million):
-
- Gold bullion volumes decreased 52% quarter over quarter to
170.1 thousand ounces (2022 – 354.3 thousand ounces) while silver
bullion volumes decreased 64% to 3.4 million ounces (2022 – 9.6
million ounces).
- Revenue from numismatic product sales increased 39% quarter
over quarter.
Revenue from the Circulation business decreased
to $32.2 million in 2023 (2022 –
$41.5 million):
-
- Revenue from the Foreign Circulation business decreased 44%,
quarter over quarter due to an unfavourable mix of coins and blanks
in new contracts, despite higher volumes from new contracts awarded
in 2023 as compared to 2022.
- Revenue from Canadian coin circulation products and services
decreased 12% quarter over quarter as less coins were required to
replenish inventories.
- Overall, operating expenses increased 17% quarter over quarter
to $35.8 million (2022 – $30.6 million) mainly due to planned increases in
employee compensation to support on-going operations, and in
consulting expenses to support the digital program, as well as the
timing of planned commemorative coin program marketing campaigns
year over year.
- Cash and cash equivalents and short-term investment decreased
to $78.1 million (December 31, 2022 - $79.3
million).
Consolidated results and financial performance
(in
millions)
|
13 weeks
ended
|
39 weeks
ended
|
|
|
|
Change
|
|
|
Change
|
|
September
30, 2023
|
October
1, 2022
|
$
|
%
|
September
30,
2023
|
October
1, 2022
|
$
|
%
|
Revenue
|
$
360.6
|
$ 728.7
|
(368.1)
|
(51)
|
$
1,841.8
|
$ 2,435.6
|
(593.8)
|
(24)
|
(Loss) profit for
the
period
|
$
(5.8)
|
$
7.8
|
(13.6)
|
(174)
|
$
15.0
|
$ 24.7
|
(9.7)
|
(39)
|
(Loss) profit
before
income tax and other
items 1
|
$
(8.7)
|
$
12.2
|
(20.9)
|
(171)
|
$
23.4
|
$ 42.5
|
(19.1)
|
(45)
|
(Loss) profit
before
income tax and other
items margin2
|
(2.4) %
|
1.7 %
|
|
|
1.3 %
|
1.7 %
|
|
|
(1) (Loss) profit
before income tax and other items is a non-GAAP financial measure.
A reconciliation from (loss) profit for the period to (loss) profit
before income tax and other items is included on page 12 of the
Mint's 2023 Third Quarter Report.
|
(2) This is a non-GAAP
financial measure and its calculation is based on profit before
income tax and other items.
|
|
As at
|
September
30,
2023
|
December 31,
2022
|
$ Change
|
% Change
|
Cash and cash
equivalents and short-term investment
|
$
|
78.1
|
$
|
79.3
|
|
(1.2)
|
(2)
|
Inventories
|
$
|
75.2
|
$
|
56.2
|
|
19.0
|
34
|
Capital
assets
|
$
|
164.1
|
$
|
152.5
|
|
11.6
|
8
|
Total assets
|
$
|
389.5
|
$
|
380.2
|
|
9.3
|
2
|
Working
capital
|
$
|
109.4
|
$
|
105.3
|
|
4.1
|
4
|
As part of its enterprise risk management program, 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 changes in the macro-economic environment
and other external events around the globe to continue to impact
its performance in 2023. The Mint continues to mitigate potential
risks as they arise through its enterprise risk management
process.
To read more of the Mint's Third Quarter Report for 2023, 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 one of the largest and most
versatile mints in the world, producing award-winning collector
coins, market-leading bullion products, as well as Canada's prestigious military and civilian
honours.
As an established London and
COMEX Good Delivery refiner, the Mint also offers a full spectrum
of best-in-class gold and silver refining services. As an
organization that strives to take better care of the environment,
to cultivate safe and inclusive workplaces and to make a positive
impact on the communities where it operates, the Mint integrates
environmental, social and governance practices in every aspect of
its operations.
For more information on the Mint, its products and services,
visit www.mint.ca. Follow the Mint on LinkedIn, 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
2022 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, 2022. The forward-looking statements
included in this Earnings Release are made only as of November 22, 2023, 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.
SOURCE Royal Canadian Mint