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Royal Canadian Mint Reports Profits and Performance for Q3 2019

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OTTAWA, ONTARIO – November 22, 2019 – The Royal Canadian Mint (the "Mint") is pleased to release its financial results for the third quarter of 2019 which provide insight into our activities, the markets influencing our businesses and our expectations for the next twelve months.

"Once again we have achieved solid results this quarter through the perseverance of our team," said Marie Lemay, President and CEO of the Royal Canadian Mint. "The Mint continues to demonstrate its ability to remain agile while planning for a profitable future."

The financial results should be read in conjunction with the Mint's quarterly report available at www.mint.ca.  All monetary amounts are expressed in Canadian dollars, unless otherwise indicated.

Financial and Operational Highlights

    •  Consolidated profit before income tax and other items was $6.7 million for the quarter (2018 –  $10.5 million).

    •  Consolidated profit was $9.5 million for the quarter (2018 –  $2.8 million).

    •  Consolidated revenue was consistent quarter over quarter at $370 million:

        •  Silver bullion volumes were 6.6 million ounces (2018 – 4.7 million), while gold bullion volumes were 96.3 thousand ounces (2018 – 156.1 thousand)

        •  Sales of numismatic products were ahead of 2018 having increased to $26.0 million (2018 - $24.5 million) mainly due to custom silver product sales

        •  Foreign circulation revenue increased 6% quarter over quarter with production and/or shipments returning to more normal levels at 350 million foreign coins and blanks compared to 346 million coins and blanks in 2018

        •  Canadian circulation coin production was 123 million pieces in the quarter (2018 - 102 million pieces)

    •  Operating expenses increased $1.1 million to $22.2 million in the quarter compared to the same period in 2018 at $21.1 million.  Employee costs were higher in 2019 combined with higher IT and consulting costs primarily to support the repositioning of the Numismatic business, while marketing distribution costs were lower as compared to 2018. 

    •  Cash and cash equivalents increased to $103.1 million at September 28, 2019 (December 31, 2018 – $66.4 million).  The Mint expects to pay a dividend to Canada in the fourth quarter of 2019 from excess cash above the level of cash required to support the Mint's ongoing operations.  


Consolidated results and financial performance
(in CAD $ millions for the 13 and 39 weeks ended September 28, 2019 and September 29, 2018)

13 weeks ended

39 weeks ended

September 28, 2019

September 29, 2018

$    Change

%  Change

September 28, 2019

September 29, 2018

$  Change

%  Change

Revenue

$

370.1

 

370.9

$

(0.8)

-

$

999.2

$

972.5

$

26.7

3

Profit before income tax and other items(1)

 

6.7

 

10.5

 

(3.8)

(36)

 

25.8

 

23.7

 

2.1

9

Profit before income tax and other items margin

 

2%

 

3%

 

 

 

 

3%

 

2%

 

 

 

Profit for the period

 

9.5

 

2.8

 

6.7

239

 

22.0

 

13.5

 

8.5

63

(1)   A reconciliation from profit for the period to profit before income tax and other items is included on page 11.

As at

September 28, 2019

December 31, 2018

$ Change

% Change

Cash and cash equivalents

$

103.1

$

66.4

$

36.7

55

Inventories

 

40.4

 

62.2

 

(21.8)

(35)

Capital assets

 

174.0

 

172.8

 

1.2

1

Total assets

 

407.4

 

397.8

 

9.6

2

Working capital

 

131.7

 

107.5

 

24.2

23

To read more of the Mint's Third Quarter Report for 2019, 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

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 Narrative Discussion, as well as in Note 11 – Financial Instruments and Financial Risk Management to our Audited Consolidated Financial Statements for the year ended December 31, 2018. The forward-looking statements included in this Earnings Release are made only as of November 20, 2019, 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