The Royal Canadian Mint once again demonstrated strong business performance in 2015 thanks to excellent bullion and numismatics sales. Though a $65.5 million non-cash impairment charge resulting from lower than anticipated future cash flows from the Mint’s circulation businesses offset profits, the Mint broke even in 2015. Strong cash generation from operations also allowed the Mint to pay its shareholder, the Government of Canada, record dividends of $53 million.
“Overall, our 2015 financial results clearly show that the Mint is a robust and growing organization, with the strength to weather challenges and generate good value for Canadians,” said Sandra L. Hanington, President and CEO of the Royal Canadian Mint. “Thanks to the hard work of our employees and a renewed strategic focus, the Mint is able to pursue more success in the future while supporting Canada’s economy and celebrating Canadian pride.”
In addition to honouring Canadian history, culture and values, the Canadian Circulation Program again proved effective in managing the coinage system throughout 2015. The supply of new circulation coins remained relatively unchanged in 2015, with 392 million issued compared to 389 million in 2014. Demand was also met through coin recycling and the management of inventories held by major Canadian financial institutions.
The conclusion of a major multi-year contract and delays in the issuing of several international coin tenders lowered Circulation Products and Services revenues to $67.3 million in 2015, compared to $92.6 million in the previous year. The decline in foreign sales was partially offset by an increase in Alloy Recovery Program revenues which grew to $22.6 million in 2015, from $19.8 million in 2014.
Noteworthy 2015 business included a large supply of blanks to the Philippines, as well as the Mint’s first-ever contract with Indonesia, which purchased a large volume of multi-ply plated steel blanks.
The Mint also introduced a new pad-printing technology for coin colouring through the successful launch of the New Zealand 50-cent Anzac 100th anniversary commemorative circulation coin. This award-winning technology made its Canadian debut on a 25-cent circulation coin celebrating the 50th anniversary of the Canadian flag, followed by a 2015 coloured Poppy circulation coin launched in conjunction with a $2 circulation coin commemorating the 100th anniversary of John McCrae’s “In Flanders Fields“.
Bullion Products and Services revenues rose to $2.6 billion in 2015, compared to $2.1 billion a year earlier, as the Mint ably responded to renewed demand for its industry leading bullion products. This translated into the sale of 953,000 ounces of gold and a record 34.3 million ounces of silver, establishing the third year in a row of record silver sales.
The Mint also stood out for its leadership in the field of coin security, as it launched the commercial application of its Bullion DNA (Digital Non-destructive Activation) reader technology for facilitating the authentication of Gold and Silver Maple Leaf bullion coins.
Numismatics business revenues grew by over 12% in 2015, to a new record of $199 million, while 72 out of 243 collector coins sold out by year end. Increased demand for custom gold collector products helped the Mint sell almost 30% more numismatic ounces of gold in 2015, compared to 2014. Notable products issued in 2015 included the world’s first maple leaf-shaped coin, produced in fine silver, along with other coins celebrating FIFA Women’s World Cup Canada 2015™, the TORONTO 2015 Pan Am and Parapan American Games, LOONEY TUNES™ characters and the 100th anniversary of the publication of John McCrae’s war poem “In Flanders Fields”.
Other 2015 highlights included:
- A comprehensive strategic review to position the Mint for future growth and better help it adapt to change. This led to a reorganization of the Mint’s workforce, businesses and priorities;
- Supporting the Mint’s strategy, a new corporate vision focused on excellence, serving our customers, delivering value to Canada and Canadians, and providing a supportive work environment for our talented people;
- The sale of all assets related to MintChipTM, completing its move to commercialization in the private sector; and
- The launch of the My Canada, My Inspiration program calling on Canadians to submit designs for every coin denomination circulating in 2017 during Canada’s 150th anniversary. Over 10,000 entries were received and more than one million Canadians voted online to select the winning designs which will be revealed in 2017.
To read more from the Mint’s 2015 Annual Report, entitled “Focused on the Future”, click here.
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.
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