RCM Sees Increase In Gold, Silver Bullion Sales But Lower Revenues In Q1By Kitco News
Thursday May 28, 2015 14:17
(Kitco News) - The Royal Canadian Mint (RCM) continued to see strong demand for its gold and silver bullion products despite a drop in revenue in the first quarter of the year.
On Tuesday, the RCM released its earnings report for the first quarter of 2015 and said that profits before taxes came in at C$15.7 million, down 7.6% from profits of C$17 million recorded during the same quarter of 2014.
The mint reported total revenue of C$640.1 million for the quarter of this year, down 4.4% from 2014 first-quarter revenue of C$669.4 million. “This decline occurred across all four of the mint’s business lines: Canadian circulation; numismatics and collectables; foreign; and bullion, refinery and ETR,” the mint said in the report.
Despite the weaker revenue, the mint’s Maple Leaf gold and silver coins saw an increase in sales. The RCM sold a total of 179,000 ounces of gold in the first three months of the year, up 1.7% from 176,000 ounces sold during the same period last year. At the same time, the mint sold 8.9 million ounces of silver during the first quarter, up 8.5% from 8.2 million ounces sold during 2014’s comparative quarter.
“The mint’s sales volumes and market share remains quite strong, however, with demand for both gold and silver products exceeding initial expectations,” said the report.
The quarterly report shows that the mint’s bullion sales were the smallest drag on its earning at the start of the year. Revenue from bullion, refinery and ETR fell to C$559.6 million in the first quarter of 2015, down only 0.5% from revenues of C$562.3 million reported in the same period in 2014.
The mint said that falling gold and silver prices was the biggest drag on revenue.
The mint also said that they saw strong demand for its one-kilogram bar among its banking partners, along with high demand for its 100-ounce silver bar among North American and Asian investment markets.
Looking at the mint’s numismatic and collectible coins, revenues hit C$45 million during the first quarter, down 5.1% from C$47.4 million in revenue reported during the same time last year.
“Overall, the mint issued 64 new products in Q1 2015. The most notable issues were those celebrating the 50th anniversary of the Canadian flag, including the first-ever colored coin of the very popular face-value coin program,” the mint said.