Reports Profits and Performance for Q2 2021 OTTAWA, ON, Aug. 20, 2021 /CNW/ - The Royal Canadian Mint (the "Mint") is pleased to announce its financial results for the second quarter of 2021 that provide insight into our activities, the markets influencing our businesses and our expectations for the next 12 months.
"Overall strong profitability and higher revenues are a clear indication that the Mint's long-term strategy is allowing us to better respond to market conditions and customer needs by capitalizing on emerging opportunities," said Marie Lemay, President and CEO of the Royal Canadian Mint. "Employee commitment and dedication to implementing the Mint's new strategy is allowing us to increasingly focus our talent and resources where it is making a bigger difference for our customers and our shareholder."
The financial results should be read in conjunction with the Mint's 2021 second quarter report available at www.mint.ca. All monetary amounts are expressed in Canadian dollars, unless otherwise indicated.
Financial and Operational Highlights
- The Mint's Q2 2021 results reflect full production in Q2 2021 versus Q2 2020 which was impacted by modified production as a result of the COVID-19 pandemic.
- The Mint increased its revenue by 80% in the second quarter of 2021 and consolidated profit before income tax and other items was $25.2 million (2020 – $1.7 million) for the quarter. The Mint saw increases in revenue across both its Precious Metal and Circulation businesses. The increase was mainly due to higher bullion volumes sold in the quarter, which increased the Mint's revenue and cost of sales proportionately. The Mint's profit margin percentage improved 2.3% compared to the second quarter of 2020 mainly due to stronger performance from the sales of numismatic products and foreign circulation coins in 2021.
- Consolidated revenue increased to $953.5 million in 2021 (2020 – $529.5 million).
Revenue from Precious metal businesses increased to $905.4 million in 2021
(2020 – $500.4 million): - Gold bullion volumes increased more than 128% quarter over quarter and were 448.7 thousand ounces (2020 – 196.5 thousand ounces) while silver bullion volumes increased 24% and were 9.0 million ounces (2020 – 7.2 million ounces).
- Sales of numismatic products increased to $24.8 million in 2021 (2020 – $12.2 million) as a result of an increase in sales of gold products in 2021 and the temporary suspension, in 2020, of numismatic product production as a result of COVID-19 pandemic.
Revenue from Circulation businesses increased to $48.1 million in 2021
(2020 – $29.1 million):
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- Revenue from the Foreign Circulation business increased 209% when compared to Q2 2020 with production and shipment of 287 million foreign coins and blanks, compared to 192 million coins in Q2 2020.
- Revenue relating to Canadian coin circulation services in the quarter was largely consistent with last year. Canadian circulation coins produced and sold to the Department of Finance for inventory were 121 million pieces in the quarter (2020 – 2 million pieces).
- Overall, operating expenses increased 12% when compared to Q2 2020 to $26.2 million (2020 – $23.5 million) due mainly to planned consulting and contingent workforce costs related to the implementation of the Mint's business transformation initiatives.
- Cash and cash equivalents increased to $84.6 million (December 31, 2020 - $67.3 million).
https://www.newswire.ca/news-releases/royal-canadian-mint-reports-profits-and-performance-for-q2-2021-825880651.html