OTTAWA, May 3, 2018 /CNW/ - The Royal Canadian Mint (the "Mint" or the "Company") is pleased to release its 2017 financial results, which provide insight into our activities, the markets influencing our businesses and our expectations for the year ahead.
"Profits were up and the Mint is on solid financial ground, thanks to our dedicated employees who carry out the Mint's mandate and business strategy with enthusiasm. Strong results in our attractive and innovative collectible coins as well as our foreign business helped offset a softer global market for bullion in 2017," said Sandra L. Hanington, President and CEO of the Royal Canadian Mint.
Ms. Hanington also noted the Mint paid a record $93.2 million in dividends to the federal government in 2017.
"Mint staff work hard to earn the business of investors and collectors with award-winning designs, sophisticated security features and unique enhancements. Our 2017 $2 coin was the world's first glow-in-the-dark circulation coin and it was recently named the most innovative circulating coin by the international Mint Directors Conference. We are committed to continue building on these successes in 2018," she added.
The financial results are for the year ended December 31, 2017, and should be read in conjunction with the Company's Annual Report available at www.mint.ca. All monetary amounts are expressed in Canadian dollars, unless otherwise indicated.
Financial and Operational Highlights
- Consolidated profit before income tax and other items increased to $43.9 million for the year (2016 – $30.7 million).
- Consolidated profit for the period increased to $36.1 million for the year (2016 – $24.5 million).
- Consolidated revenue decreased to $1,691.3 million in 2017 (2016 - $2,641.4 million) as lower overall bullion global market demand led to lower bullion volumes.
- Gold volumes were 618.4 thousand ounces (2016 – 1,071.3 thousand) while silver volumes were 18.5 million ounces (2016 – 34.7 million).
- Sales of numismatic products increased in 2017 on the success of the Canada 150 program, resulting in an increase in revenue of $25.7 million.
- The Canada 150 commemorative coin program, combined with reduced availability of recycled coins, resulted in increased Canadian circulation coin production of 560 million pieces, up from 533 million in 2016.
- Shipment of 1,522 million foreign coins and blanks in the year (2016 – 1,573 million) resulted in consistent revenue from the Foreign Circulation business year over year.
- Operating expenses remained consistent year over year at $138.5 million (2016 - $138.2 million).
- In 2017, the Mint declared and paid dividends to the Government of Canada in the amount of $93.2 million. The payment of these dividends was the primary driver in the reduction of cash to $56.3 million at December 31, 2017, which is the level of cash required to support the Mint's ongoing operations (from $114.2 million at December 31, 2016).
Consolidated results and financial performance
(in CAD $ millions for the years ended December 31, 2017 and 2016)
| Year ended |
||||
| December 31, 2017 |
December 31, 2016 |
$ Change |
% Change |
|
| Revenue |
$ 1,691.3 |
$ 2,641.4 |
$ (950.1) |
(36) |
| Profit before income tax and other items (1) |
43.9 |
30.7 |
13.2 |
43 |
| Profit for the period |
36.1 |
24.5 |
11.6 |
47 |
| (1) A reconciliation from Profit for the period to Profit before income tax and other items is included on page 27 of the Mint's Annual Report for 2017. |
||||
| As at |
||||
| December 31, 2017 |
December 31, 2016 |
$ Change |
% Change |
|
| Cash |
$ 56.3 |
$ 114.2 |
$ (57.9) |
(51) |
| Inventories |
85.5 |
78.9 |
6.6 |
8 |
| Capital assets |
176.2 |
182.5 |
(6.3) |
(3) |
| Total assets |
377.8 |
444.1 |
(66.3) |
(15) |
| Working capital |
82.1 |
136.1 |
(54.0) |
(40) |
To read more of the Mint's Annual 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 MD&A as well as in Note 8 – Financial Instruments and Financial Risk Management to our Consolidated Financial Statements.
The forward-looking statements included in this Earnings Release are made only as of May 3, 2018, 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
Alex Reeves, Senior Advisor, External Communications, Royal Canadian Mint, Tel: (613) 949-5777, [email protected]
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