#Canada #Royal Canadian Mint #Ottawa #Q3 Results #Financial Performance

Overview of the Royal Canadian Mint's Q3 2024 Results

On November 22, 2024, the Royal Canadian Mint (the "Mint") published its financial results for the third quarter of 2024. This release not only details the Mint's performance but also provides insights into the influencing market dynamics and projections for the upcoming year. Following a consistent trend of adaptation and resilience, the Mint's President, Marie Lemay, remarked on its ability to capitalize on new opportunities arising from its diverse operational structure and nimble business strategy.

Financial Highlights

The Mint's financial performance in Q3 2024 surpassed its expectations and improved compared to Q3 2023. Key financial highlights include:

• - A significant uptick in gold prices and volumes of foreign circulation coins, contributing to quarter-over-quarter growth.
• - Although there was a noted decline in investment product volumes due to waning global demand, the Mint anticipates achieving its financial goals for the fiscal year as outlined in its Business Plan for 2024-2028.

Specifically, consolidated operating revenues fell to CAD 252.7 million in 2024 from CAD 360.6 million in 2023. Meanwhile, revenues from the precious metals sector also experienced a decline, reaching CAD 217.6 million compared to CAD 328.4 million in 2023.

Investment Product Volumes

• - The Mint observed a significant drop in gold investment product volumes, plunging 38% quarter-over-quarter to 106,100 ounces from 170,100 ounces in 2023. In tandem, silver investment product volumes decreased by 20%, totaling 2.7 million ounces compared to 3.4 million ounces in the prior year.
• - Nevertheless, the prices of gold and silver saw increases of 27% and 23%, respectively, over the same period.
• - The Mint also saw a 12% decrease in sales of numismatic products, resulting from a high demand for products commemorating the reign of Queen Elizabeth II in the previous year.

Circulation Coin Revenues

Conversely, revenues from circulation coins experienced a positive turn, rising to CAD 35.1 million in 2024, up from CAD 32.2 million in 2023. Particularly noteworthy was the 77% increase in revenues from foreign circulation coins, which reflected higher volumes of coins manufactured and shipped compared to the same period last year.

However, revenues from Canadian circulation coins declined by 12% due to the reduced number of coins needed for restocking, coupled with lower program costs aligned with an agreement with the Ministry of Finance.

Operating Expenses

In the face of fluctuating market conditions, the Mint managed to reduce its operating expenses by 27%, dropping to CAD 28.3 million from CAD 36.0 million in 2023. This reduction was primarily due to planned cuts in consulting services and workforce costs.

Consolidated Financial Results

Here are some additional insights regarding the consolidated financial performance as of September 28, 2024:

• - Operating Revenues: CAD 252.7 million (down 30% from CAD 360.6 million in 2023)
• - Net Income: CAD 5.7 million (compared to a loss of CAD 5.8 million in 2023)
• - Working Capital: CAD 99.2 million, up from CAD 97.8 million in 2023

Addressing Challenges

The Mint remains vigilant regarding global supply chain dynamics and continuously monitors its risk management framework to mitigate external disruptions that could impact performance through 2024.

Conclusion

The latest quarterly report from the Royal Canadian Mint reveals a company navigating through both challenges and opportunities with strategic foresight. As it continues to adapt to market changes, the Mint remains committed to delivering value and performance aligned with its goals for the future. For further details, stakeholders can access the complete Q3 2024 report at www.monnaie.ca and follow the Mint on their social media platforms for updates.

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About the Royal Canadian Mint

The Royal Canadian Mint is a crown corporation responsible for producing and distributing Canada's circulation coins. Recognized as one of the world's leading and most versatile mints, it also produces award-winning collectibles, premium investment products, and prestigious medals for military and civilian honors. The Mint is committed to environmental stewardship and enhancing the workplaces it creates across Canada. To explore its various offerings, visit www.monnaie.ca.