Royal Canadian Mint Reports First Quarter 2024 Financial Results
Marie Lemay, President and CEO of the Royal Canadian Mint, commented on the 2023 results, stating, “The Royal Canadian Mint achieved solid results despite a sharp downturn in the precious metals market, significant investments in its digital transformation, and a higher level of operating costs. We will remain agile and seize new opportunities to help drive future profitability and sustainability.” The Mint remains optimistic about meeting its financial goals for 2024, as outlined in its 2024-2028 Corporate Plan.
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A global trend: Sharp decline in the bullion business also at the Royal Canadian Mint. (Photo: Background by powerofforever / Canva Pro, coin photo by Royal Canadian Mint
Revenue Decline
Consolidated revenue for 2023 fell to $2,162.0 million from $3,282.5 million in 2022. This decline was primarily due to reduced bullion volumes, driven by weaker demand in the global bullion market during the second half of 2023, increased precious metal costs, and higher operating expenses. Despite these challenges, numismatic products celebrating the reign of Queen Elizabeth II and the coronation of King Charles III saw significant success during the year 2023, while sales of numismatic products saw a 7% decline in the first quarter of 2024, attributed to high demand in Q1 2023 for Queen Elizabeth II’s Reign products.
Consolidated revenue for the first quarter of 2024 further decreased to $314.7 million, down from $769.7 million in the same period of 2023. This decline was primarily due to lower bullion volumes driven by weaker demand in the global bullion market. However, the impact was partially offset by higher foreign circulation volumes and reduced operating expenses.
Precious Metals Business
Revenue from the Precious Metals business dropped to $2,046.1 million in 2023, down from $3,124.3 million in 2022. Gold bullion volumes decreased by 34% to 989.1 thousand ounces, and silver bullion volumes dropped by 34% to 24.4 million ounces. Revenue further dropped to $286.3 million in the first quarter of 2024, compared to $747.7 million in the previous timespan in 2023. Gold bullion volumes fell by 46% to 173.6 thousand ounces, and silver bullion volumes decreased by 50% to 4.5 million ounces.
Circulation Business
Revenue from the Circulation business decreased to $115.9 million in 2023, compared to $158.2 million in 2022. Foreign Circulation revenue saw a 56% decrease due to lower volumes and changes in the mix of coins and blanks in new contracts. Revenue from Canadian circulation products decreased by 8%, primarily due to fewer coins being required to replenish inventories, increased deposits with financial institutions, and more coins coming from the recycling program.
However, revenue from the Circulation business increased to $28.4 million in the first quarter of 2024, up from $22.0 million in the same quarter of 2023. The Foreign Circulation business saw a near threefold increase in revenue, reflecting higher production and shipment volumes. Conversely, revenue from Canadian coin circulation products and services decreased by 2%, mainly due to lower processing volumes in the Alloy Recovery Program.
Operating Expenses
Operating expenses increased by 8% year over year to $135.0 million in 2023, up from $125.3 million in 2022. This rise was mainly due to planned increases in employee compensation to support ongoing operations and expenses associated with the digital program.
