The Q3 results reveal reduced costs and strong foreign circulation amid bullion demand challenges
The Royal Canadian Mint has released its financial results for the third quarter of 2024, providing insights into its performance, market influences, and expectations for the coming year.
These results, which exceeded targets and outperformed 2023 levels, were primarily driven by higher gold prices, increased foreign circulation volumes, and reduced fixed costs. Lower bullion demand partially offset these gains.
Revenue for the third quarter decreased to $252.7m, compared to $360.6m in 2023. Precious Metals business revenue declined to $217.6m, reflecting a 38 percent drop in gold bullion volumes to 106,100 ounces and a 20 percent decrease in silver bullion volumes to 2.7 million ounces.
Despite these volume reductions, gold and silver market prices rose 27 percent and 23 percent, respectively, quarter over quarter.
Sales of numismatic products fell 12 percent, largely due to strong demand in 2023 for Queen Elizabeth II's Reign products.
Circulation business revenue increased to $35.1m from $32.2m in 2023. This growth was led by a 77 percent rise in revenue from the Foreign Circulation business, driven by higher volumes produced and shipped.
Revenue from Canadian coin circulation products and services decreased 12 percent due to reduced replenishment needs and lower program fees under the memorandum of understanding with the Department of Finance.
Operating expenses dropped 27 percent to $28.3m, reflecting planned reductions in consulting and workforce expenses. Profit for the quarter rose to $5.7m, compared to a $5.8m loss in the same period last year.
The Mint’s cash position decreased slightly to $58.4m as of September 28, 2024, while inventories increased to $71.5m. Total assets stood at $376.8m, down 1 percent from December 31, 2023.
Working capital improved by 1 percent to $99.2m.
Marie Lemay, president and CEO of the Mint, stated, “As the markets continue to change, the Mint is proving its ability to seize on new opportunities thanks to its diversified structure and flexible business strategy.”
As part of its enterprise risk management program, the Mint continues to monitor global supply chains and logistics networks. The Mint anticipates ongoing impacts from macroeconomic changes and external global events in 2024.
According to its press release, its leadership team remains focused on mitigating risks and meeting financial targets outlined in the 2024-2028 Corporate Plan.
