While third quarter profits were down for the Royal Canadian Mint, the sale of its collector coins remains very strong.
The RCM’s third quarter consolidated revenues of $500.5 million in the 13 weeks ended September 27, 2014, and consolidated profit before taxes dropped 34.4 per cent to $8.2 million from $12.5 million in the same period in 2013.
“The demand for our numismatic and collector coins persists and the Mint continues to innovate to bring Canadians and international customers a range of themes and unique designs,” said Marc Brûlé, interim president and CEO of the Royal Canadian Mint. “The exquisite craftsmanship of these coins demonstrates the Mint’s renowned talent and skills which support our vision to be the best mint in the world.”
Sales of Silver Maple Leaf (SML) coins declined to 5.4 million ounces from 6.7 million ounces in the same period last year. The decline in Gold Maple Leaf (GML) coin sales reflects a shift in investor sentiment away from physical assets to the equity markets. GML sales declined 29.7% to 137 thousand ounces compared to 195 thousand ounces in the same period in 2013.
Demand continues to build for the Mint’s numismatic products, with revenue increasing 16.5% to $42.5 million in the 13 weeks ended September 27, 2014 from $38.8 million in the same period in 2013.
The Mint issued 80 new products during the quarter compared to 52 in the same period last year. There were 19 sell-outs during the quarter compared to 16 in the same period in 2013. The most popular coins during the quarter were premium coins as well as coins that are unique, particularly those with sophisticated technology.
The Mint sold 402.0 million coins and blanks to nine countries in the 13 weeks ended September 27, 2014 compared to 595.7 million coins and blanks shipped to nine countries in 2013. Foreign business line revenue declined 24 per cent to $13.1 million in the quarter from $17.3 million in the same period in 2013.
Other notable Mint achievements in the third quarter include:
• The release of popular products including a one-kilo pure gold Year of the Sheep coin, a set of three coins featuring images from well-known Emily Carr works of art and four Superman™ coins that sold out in less than three days.
• The Mint released two face value silver coins – “$50 for $50” Snowy Owl and “$200 for $200” Towering Forests. This program continues to generate significant demand and has proven to be very successful in building the Mint’s customer base.
• The Mint produced bronze-plated coin blanks using a proprietary non-cyanide diffusion process. A world first, this is the only commercial option to meet growing market demand for the environmentally-friendly production of yellow coins.