Royal Canadian Mint Reports Profits and Performance for 2022

OTTAWA, ONTARIO – May 9, 2023 – The Royal Canadian Mint (the “Mint”) is pleased to announce its financial results for 2022 that provide insight into its activities, the markets influencing its businesses and its expectations for the next 12 months.

“Although the Mint was challenged by geopolitical events, inflation and supply chain disruptions, our One Mint strategy gave us the agility to adjust and respond effectively to our customers’ needs throughout 2022,” said Marie Lemay, President and CEO of the Royal Canadian Mint. “While part of our business experienced cyclical variances, the Mint, with the support of its employees, delivered strong financial results and value to Canadians.”

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 2022 were as expected, below 2021 levels, given the exceptional performance seen in 2021, and planned operational maintenance in 2022. The Mint still exceeded its financial goals for 2022, as set out in the Mint’s Corporate Plan.
• Consolidated revenue decreased to $3,282.5 million in 2022 (2021 – $3,550.8 million).

Revenue from Precious Metals businesses decreased to $3,124.3 million in 2022 (2021 – $3,348.2 million):

• Silver bullion volumes decreased 2% to 37.1 million ounces (2021 – 37.7 million ounces) and the silver market price also decreased year over year. These decreases were partially offset by an increase in gold bullion volumes of 1% year over year to 1,489.7 thousand ounces (2021 – 1,470.5 thousand ounces).
• Revenue from numismatic product sales increased to $117.7 million in 2022 (2021 – $112.3 million) due to higher sales from the Mint’s new Opulence coin collection, international resale coins, premium bullion products and other silver products.

Revenue from Circulation businesses decreased to $158.2 million in 2022 (2021 – $202.6 million):

• Revenue from Canadian coin circulation products and services increased 7% year over year from a different mix of denominations sold year over year under an updated memorandum of understanding with the Department of Finance combined with higher Alloy Recovery Program (ARP) metric tons processed in 2022 partially offset by lower circulation coin volumes and lower program fees.
• Revenue from the Foreign Circulation business decreased 45% year over year due to significantly lower volumes produced and shipped in 2022 as compared to 2021 due to the slower than expected re-opening of foreign economies post-pandemic and the rising geopolitical and economic uncertainties on the global economy.

• Overall, operating expenses increased 13% year over year to $125.3 million (2021 – $110.8 million) due primarily to planned temporary increases in expenses to support the digital program and business transformation, higher corporate donations driven by shareholder directed donations, as well as increases in travel related expenses as the Mint started to transition back to in-person meetings in 2022. The increase in marketing and sales expenses was due to the increased marketing campaigns consistent with higher sales of numismatic products.
• Cash and cash equivalents increased to $79.3 million (December 31, 2021 - $69.3 million).

Consolidated results and financial performance

(in millions)

(1) Profit before income tax and other items is a non-GAAP financial measure. A reconciliation from profit for the period to profit before income tax and other items is included on page 43 of the Mint’s 2022 annual report.

(2) Profit before income tax and other items margin is a non-GAAP financial measure and its calculation is based on profit before income tax and other items.

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, as well as the continuing emergence of COVID-19 variants, to continue to impact its performance in 2023. The Mint continues to mitigate potential risks as they arise and prioritize the health and safety of its employees, adjusting its work protocols as required by the provinces and the local health authorities.

To read more of the Mint’s annual report for 2022, 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 recognized as one of the largest and most versatile mints in the world, offering a wide range of specialized, high-quality coinage products and related services on an international scale. For more information on the Mint, its products and services, visit www.mint.ca.  Follow the Mint on Twitter, 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 2021 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 March 9, 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.

For more information, please contact:

Alex Reeves
Senior Manager, Public Affairs
Tel: (613) 884-6370
reeves@mint.ca