Wednesday May 17, 2017 21:56
Royal Canadian Mint’s Q1 Revenue Down On Lower Silver Bullion DemandRoyal Canadian Mint’s first quarter revenue fell by C$85.6 million ($62.9 million) compared to a year ago, largely due to weaker silver bullion demand, this according to the latest earnings release.
Consolidated revenue was at C$502.8 million ($369.8 million) in Q1 in comparison to C$588.4 ($432.7) million during the same period in 2016.
The decline was driven by lower silver revenues due to a drop in bullion market demand. “While demand in the bullion market has slowed, the Mint’s diversified model continues to drive overall profitability,” said Sandra Hanington, CEO of the Royal Canadian Mint.
The Mint’s Q1 gold volumes were at 208.3 thousand ounces, down from 210.6 thousand, during the quarter, while silver volumes were just at 4.7 million ounces, a huge decline from 10.6 million.
But, the quarter was still profitable for the Mint, as Canada 150 program created enough buzz to generate sales.
“With a wide range of appealing collector products including entry-level priced coins, the Mint’s Numismatics business is benefitting from the early success of our Canada 150 program in the First Quarter of 2017,” Hanington added.
Overall quarterly consolidated profit before income taxes was unchanged at C$14.9 million ($10.9 million) versus C$15.0 million ($11 million) reported in Q1 2016.
In Q1, the Mint produced 96 million coins in comparison to 138 million a year ago, as it filled the order to top up inventories for the Department of Finance.
The biggest boost came from shipments of foreign coins and blanks during the quarter, which surged to 269.7 million in Q1, up from from 67.3 million, on an annual basis.
By Anna Golubova
For Kitco News