OTTAWA, Nov. 25, 2015 /CNW/ - In publishing its 2015 Third Quarter Financial Report, the Royal Canadian Mint announced consolidated revenues of $928.5 million for the 13 weeks ended September 26, 2015, representing an 85.5% increase over the same period in 2014. A sustained resurgence in gold and silver bullion demand, paired with robust sales of numismatic products have put the Mint on track to exceed revenue targets set out in its 2014-2018 Corporate Plan. Upon completing a strategic review, the Mint also adopted a new vision: "Delivering excellence... through our customer-driven businesses, our talented people and the value we add to Canada and Canadians."
"By reorganizing and refocusing the Mint, we have taken proactive steps to ensure that the Mint is ideally positioned to attract new customers to our industry-leading coin products and technologies," said Sandra L. Hanington, President and CEO of the Royal Canadian Mint. "With still more room to grow our numismatic and bullion businesses and emerging opportunities on the international coin market, the Mint is facing the future from a position of strength."
In undertaking a strategic review to ensure continued success under changing market conditions, the Mint adjusted and redeployed part of its workforce, reorganized its business lines, and re-assessed operating costs. After concluding that the valuation of the Mint's circulation business assets was impaired due to the recent elimination of anticipated profit for Canadian circulation coin production and lower international revenue projections, a $65.5 million non-cash impairment charge was recorded in Q3 2015.
Pre-impairment consolidated profit before taxes increased 146.3% to $20.2 million from $8.2 million in the same period in 2014. The increase was driven by strong bullion and numismatic results. The $65.5 million impairment loss drove the consolidated profit before taxes to a loss of $45.3 million in the third quarter, compared to a profit of $8.2 million in the same period in 2014.
Year-to-date production of Canadian circulation coins is up compared to the same 2014 period, to 246 million compared to 79 million, as the Mint gradually replenishes inventories affected by a drop in financial institution deposits and a lower opening inventory for the year. The number of recycled coins available for circulation also increased slightly to 428 million year-to-date, compared to 410 million after the first three quarters of 2014. As well, the Mint launched 12.5 million 25-cent commemorative circulation coins celebrating the 50th anniversary of the Canadian flag on June 9, 2015, which were the first Canadian coins to feature the Mint's advanced pad-printing colouring technology.
The Circulation Products and Solutions Business Line, incorporating foreign circulation sales and the Alloy Recovery Program, is on track to break even for 2015. The Mint shipped 336.6 million coins and blanks to 12 countries in the third quarter of 2015, compared to 402.0 million coins and blanks shipped to nine countries during the same period last year. While foreign circulation sales declined by 9.2% to $11.9 million from $13.1 million in Q3 2014, the Mint has secured large volume coin and blank contracts for two countries in the current quarter.
Revenue from the Alloy Recovery Program, through which the metal content of alloy coins collected through the recycling program is recovered and sold, increased 32.0% to $6.6 million from $5.0 million in the third quarter of 2014.
Bullion Products and Services revenues of $840.4 million more than doubled in Q3 2015 over the $409.8 million recorded in the third quarter of 2014, with demand for both gold and silver bullion products exceeding expectations, up 135.5% and 75.9% respectively in terms of ounces. Nearly 10 million ounces of silver bullion, mostly as Silver Maple Leaf coins, were sold in 2015.
A highlight of the financial quarter was the North American launch of the Mint's Bullion DNA Anti-Counterfeiting Technology at the American Numismatic Association's 2015 World's Fair of Money in Chicago, Illinois on August 22. As part of its commitment to innovate for the benefit of its customers, the Mint developed a counter-top device which now allows genuine Gold and Silver Maple Leaf bullion coins to be identified and certified in-store. This advanced security technology will soon be rolled out to the international bullion market.
Numismatics and collectibles revenues continued to increase in the third quarter of 2015, with sales of $51.5 million representing an increase of 13.9% over Q3 2014. Revenues have been generated by a strong core of existing customers as well as new ones acquired through targeted campaigns and sales strategies.
Prominent numismatic coins issued in Q3 2015 included a series of gold and silver coins celebrating the historic reign of Her Majesty Queen Elizabeth II; a fine silver coloured coin commemorating the loss of the Franklin Expedition in Canadian waters; our first coins, in gold and silver, honouring Diwali, the Festival of Lights; and a new achromatic hologram coin featuring the story of the northern lights and the legend of the raven, which was unveiled in Whitehorse, YK on August 24.
To read more of the Mint's third quarter financial report, 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 9001-2008 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.
SOURCE Royal Canadian Mint
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