Royal Canadian Mint Reports Third Quarter 2017 Results

OTTAWA, Nov. 24, 2017 /CNW/ - The Royal Canadian Mint (the "Mint" or the "Company") today reported its financial results for the 13 and 39 weeks ended September 30, 2017.  The contents of this release should be read in conjunction with the Company's Quarterly Financial Report available at www.mint.ca.  All monetary amounts are expressed in Canadian dollars unless otherwise indicated.

"The Mint continues to achieve strong operating performance across all its businesses and remains a global minting leader,"  said Sandra L. Hanington, President and CEO of the Royal Canadian Mint. "We are building and executing more sophisticated marketing techniques for our Numismatics business' profitable growth and we maintain strong market share in bullion products despite recent drops in global market demand."

Financial and Operational Highlights for the Third Quarter

• Consolidated profit before Face Value (FV) revaluation and income taxes increased to $10.4 million for the quarter (2016 – $3.2 million) and the overall profit margin increased from 0.6% in 2016 to 2.7% in 2017.
• Consolidated revenue decreased to $385.9 million for the quarter (2016 - $553.4 million) primarily as a result of lower bullion revenues as bullion market demand declined.
• 413 million Canadian circulation coins were produced in the quarter (2016 – 461 million) in order to replenish inventories held on behalf of the Department of Finance.
• 296 million foreign coins and blanks shipped in the quarter (2016 – 518 million) which reflects differences in the timing of shipments in 2017 as compared to 2016.
• Softer overall bullion demand contributed to lower bullion volumes for the quarter compared to the same period in 2016. Gold volumes were 255.9 thousand ounces (2016 – 386.6 thousand) while silver volumes were 9.7 million ounces (2016 – 11.8 million).
• Numismatics revenues increased to $43.4 million (2016 – $36.3 million) in the quarter on the continued strength of Canada 150 product sales.
• The Mint continues to focus on ensuring its expenses are well-managed. On the whole, recurring expenses remained consistent year over year. For the quarter, operating expenses have increased 7% to $33.7 million (2016 - $31.4 million) largely due to non-recurring administration expenses , partially offset by lower marketing and sales expenses.

To read more of the Mint's Third Quarter Report for 2017, 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.  

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 as well as in Note 8 – Financial Instruments and Financial Risk Management to our Condensed Consolidated Financial Statements.

The forward-looking statements included in this Earnings Release are made only as of November 24, 2017, 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.

SOURCE Royal Canadian Mint