Royal Canadian Mint Reports Profits and Performance for 2022

“Although the Mint was challenged by geopolitical events, inflation and supply chain disruptions, our One Mint strategy gave us the agility to adjust and respond effectively to our customers’ needs throughout 2022,” said Marie Lemay, President and CEO of the Royal Canadian Mint. “While part of our business experienced cyclical variances, the Mint, with the support of its employees, delivered strong financial results and value to Canadians.” The financial results should be read in conjunction with the Mint’s annual report. All monetary amounts are expressed in Canadian dollars, unless otherwise indicated.

Financial and Operational Highlights

• The financial results for 2022 were as expected, below 2021 levels, given the exceptional performance seen in 2021, and planned operational maintenance in 2022. The Mint still exceeded its financial goals for 2022, as set out in the Mint’s Corporate Plan.
• Consolidated revenue decreased to $3,282.5 million in 2022 (2021 – $3,550.8 million). Revenue from Precious Metals businesses decreased to $3,124.3 million in 2022 (2021 – $3,348.2 million):
  • Silver bullion volumes decreased 2% to 37.1 million ounces (2021 – 37.7 million ounces) and the silver market price also decreased year over year. These decreases were partially offset by an increase in gold bullion volumes of 1% year over year to 1,489.7 thousand ounces (2021 – 1,470.5 thousand ounces).
  • Revenue from numismatic product sales increased to $117.7 million in 2022 (2021 – $112.3 million) due to higher sales from the Mint’s new Opulence coin collection, international resale coins, premium bullion products and other silver products.
• Revenue from Circulation businesses decreased to $158.2 million in 2022 (2021 – $202.6 million):
  • Revenue from Canadian coin circulation products and services increased 7% year over year from a different mix of denominations sold year over year under an updated memorandum of understanding with the Department of Finance combined with higher Alloy Recovery Program (ARP) metric tons processed in 2022 partially offset by lower circulation coin volumes and lower program fees.
  • Revenue from the Foreign Circulation business decreased 45% year over year due to significantly lower volumes produced and shipped in 2022 as compared to 2021 due to the slower than expected re-opening of foreign economies post-pandemic and the rising geopolitical and economic uncertainties on the global economy.
• Overall, operating expenses increased 13% year over year to $125.3 million (2021 – $110.8 million) due primarily to planned temporary increases in expenses to support the digital program and business transformation, higher corporate donations driven by shareholder directed donations, as well as increases in travel related expenses as the Mint started to transition back to in-person meetings in 2022. The increase in marketing and sales expenses was due to the increased marketing campaigns consistent with higher sales of numismatic products.
• Cash and cash equivalents increased to $79.3 million (December 31, 2021 – $69.3 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 43 of the Mint’s 2022 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 enterprise risk management program, 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 changes in the macro-economic environment and other external events around the globe, as well as the continuing emergence of COVID-19 variants, to continue to impact its performance in 2023. 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.