Royal Canadian Mint Reports Profits and Performance for 2021

OTTAWA, ONTARIO – May 06, 2022 – The Royal Canadian Mint (the “Mint”) is pleased to announce its financial results for 2021 that provide insight into our activities, the markets influencing our businesses and our expectations for the next 12 months.

“The Mint achieved a record year in terms of profits, paid a dividend of $78.9 million to the Government of Canada and excelled on many other fronts thanks to the exceptional collaboration of employees implementing our One Mint Strategy.  Though the pandemic continued to affect our business environment, our operations flexed with market trends, business teams seized new opportunities and supply chain challenges were overcome,” said Marie Lemay, President and CEO of the Royal Canadian Mint.  Our performance demonstrates the potential of our long-term strategic direction and creates a solid foundation for a future where the Mint continues to be a strong contributor to the Canadian economy, and to bring value to Canadians and stakeholders at home and abroad.”

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 Mint’s 2021 results reflect full production in 2021 versus 2020 which was impacted by modified production as a result of the COVID-19 pandemic.
• The Mint’s revenue increased by 40% in 2021 while profit for the year increased to $53.7 million (2020 – $37.7 million) and consolidated profit before income tax and other items was $82.1 million (2020 – $27.5 million) for the year. The Mint saw increases in revenue across both its Precious Metals and Circulation businesses. The increase was mainly due to higher bullion volumes sold in the year, which increased the Mint’s revenue and cost of sales proportionately.
• Consolidated revenue increased to $3,550.8 million in 2021 (2020 – $2,527.6 million).

Revenue from Precious Metals businesses increased to $3,348.2 million in 2021 (2020 – $2,375.4 million):

• Gold bullion volumes increased 50% year over year to 1,470.5 thousand ounces (2020 – 982.8 thousand ounces) while silver bullion volumes increased 28% to 37.7 million ounces (2020 – 29.5 million ounces).
• Sales of numismatic products increased to $112.3 million in 2021 (2020 – $91.9 million) due to an increase in sales of gold and silver numismatic products.

Revenue from Circulation businesses increased to $202.6 million in 2021 (2020 – $152.2 million):

• Revenue from the Foreign Circulation business increased 76% year over year with production and shipment of 1.2 billion foreign coins and blanks, compared to 838 million coins in 2020.
• Revenue from Canadian coin circulation products and services increased 2% year over year mainly due to decreased supply of coins in the ecosystem resulting in an increased volume of coins sold to the Department of Finance in the second half of 2021.

• Overall, operating expenses increased 12% year over year to $110.8 million (2020 – $98.5 million) due mainly to planned consulting and contingent workforce costs related to the implementation of the Mint’s business transformation and security initiatives.
• Cash and cash equivalents increased to $69.3 million (December 31, 2020 - $67.3 million).

Consolidated results and financial performance

(in CAD $ 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 36 of the Mint’s 2021 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 business continuity plan, 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 COVID-19 and emerging variants as well as other external events around the globe to continue to have an impact on its performance in 2022. 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 2021, 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, 2021. The forward-looking statements included in this Earnings Release are made only as of May 06, 2022, 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