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Royal Canadian Mint Proud to Report Profits and Performance for Q3 2018

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OTTAWA, ONTARIO – November 29, 2018 – The Royal Canadian Mint (the "Mint" or the "Company") is pleased to release its financial results for the 13 and 39 weeks ended September 29, 2018, which provide insight into our activities, the markets influencing our businesses and our expectations for the next twelve months.

"The Mint continues to achieve steady profitability despite factors challenging some of our businesses," said Jennifer Camelon, Interim President and CEO of the Royal Canadian Mint. "Through sound cost controls, new contracts in refinery and bullion storage services, as well as increased foreign circulation revenue, the Mint is performing well after three quarters and is poised for a strong finish to 2018."
 
The financial results are for the 13 and 39 weeks ended September 29, 2018 and September 30, 2017, and should be read in conjunction with the Company's Quarterly Report available at www.mint.ca.  All monetary amounts are expressed in Canadian dollars, unless otherwise indicated.

Q3 2018 Financial and Operational Highlights

    •  Consolidated profit before income tax and other items was $10.5 million
        for the quarter (2017 –  $10.6 million) and the profit margin remained consistent
        at 3% quarter over quarter.
    •  Consolidated profit was $2.8 million for the quarter (2017 –  $7.0 million).
    •  Consolidated revenue declined to $370.9 million in the third quarter of
        2018 (2017 - $385.9 million) as 2017 revenue was supported by the success
       of the Canada 150 numismatic campaign.
          •  As expected, sales of numismatic products continued to be slower in the third
             quarter of 2018 having decreased to $24.5 million (2017 - $43.4 million) after
             a strong year in 2017 driven by Canada 150 product sales, in particular sales of
             silver and base metal numismatic products are down 47% quarter over quarter.
          •  Gold bullion volumes increased to 156 thousand ounces (2017 – 135 thousand)
             while silver bullion volumes were 4.7 million ounces (2017 – 5.0 million).
          •  Bullion ancillary services revenue doubled quarter over quarter as these services
             continue to expand.  The increase in Bullion ancillary services continues to allow
              us to effectively manage the overall costs of the Bullion business during the
              current market conditions.
          •  Shipment of 346 million foreign coins and blanks in the quarter (2017 – 296 million),
              combined with higher revenue per coin, resulted in an increase in revenue from
              the Foreign Circulation business as compared to the third quarter of 2017.
          •  Canadian Circulation coin production was 304 million pieces in the
              quarter (2017 – 421 million pieces).
    •  Operating expenses decreased 23% quarter over quarter to $21.1 million
        (2017 - $27.5 million) as the Mint continues to carefully manage expenses.


Consolidated results and financial performance
(in CAD $ millions for the 13 and 39 weeks ended September 29, 2018 and September 30, 2017)

 

13 weeks ended

39 weeks ended

 

 

 

 

Change

 

 

Change

 

 

September 29, 2018

September 30, 2017

$

%

September 29, 2018

September 30, 2017

$

%

Revenue

$ 370.9

$ 385.9

$ (15.0)

(4)

$ 972.5

$ 1,290.3

$ (317.8)

(25)

Profit before income tax and other items (1)

10.5

10.6

(0.1)

(1)

23.7

31.5

(7.8)

(25)

Profit before income tax and other items margin

3%

3%

 

 

2%

2%

 

 

Profit for the period

2.8

7.0

(4.2)

 

13.5

23.5

(10.0)

 

(1) A reconciliation from Profit for the period to Profit before income tax and other items is included on page 11 of the Mint's 2018 Third Quarter Report.

 

 

As at

 

 

 

September 29, 2018

December 31, 2017

$ Change

% Change

Cash and cash equivalents

$ 48.5

$ 56.3

$ (7.8)

(14)

Inventories

85.1

85.5

(0.4)

-

Capital assets

173.6

176.2

(2.6)

(2)

Total assets

387.6

377.8

9.8

3

Working capital

103.4

82.1

21.3

26


To read more of the Mint's Third Quarter Report for 2018, 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. An ISO 9001 certified company, 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

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 9 – Financial Instruments and Financial Risk Management to our Unuaudited Condensed Consolidated Financial Statements.

The forward-looking statements included in this Earnings Release are made only as of November 27, 2018, 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 Advisor, External Communications
Tel: (613) 949-5777
reeves@mint.ca