AsiaNet 89311

OTTAWA, ON, May 1, 2021 /PRNewswire=KYODO JBN/--

The Royal Canadian Mint (the "Mint") is pleased to announce its financial

results for 2020 that provide insight into our activities, the markets

influencing our businesses and our expectations for the next 12 months.

Logo -

https://mma.prnewswire.com/media/1500959/Royal_Canadian_Mint_Royal_Canadian_Mint_Reports_Profits_and_Perf.jpg

"In 2020, employees of the Royal Canadian Mint demonstrated their ability to

innovate and deliver great products in a very challenging operating

environment" said Marie Lemay, President and CEO of the Royal Canadian Mint.

"Their hard work contributed to the Mint's success. Employees pivoted quickly

in the face of disruption allowing the Mint to generate strong profits."  

"The Mint continues to respond to the unprecedented situation with COVID-19 in

a proactive way that prioritizes the health and safety of our employees. We

have adapted our production to be able to continue delivering critical services

in support of the essential mining and financial sectors, while adhering to

strict new protocols to ensure our work environment is a safe one."

"One very special initiative in 2020 was our Recognition Medal, created to

recognize frontline workers while raising money for the Breakfast Club of

Canada's COVID-19 Emergency Fund. Employees donated their time to this project

and thanks to their generosity and the contrinutions of thousands of Canadians,

the Mint was able to make a $400,000 donation to the Breakfast Club in 2020."

The financial results should be read in conjunction with the Mint's annual

report available at www.mint.ca. All monetary amounts are expressed in Canadian

dollars, unless otherwise indicated.

Financial and Operational Highlights

    -- The Mint increased its revenue by 74% in 2020 as a result of

       exceptionally strong global market demand for bullion while consolidated

       profit before income tax and other items was $27.5 million for the year

       (2019 – $42.3 million). Higher bullion volumes sold in 2020 increased

       the Mint's revenue and cost of sales proportionately; however, the

       Mint's profit margin was impacted in 2020 by lower revenue from its

       other businesses, without a corresponding decrease in costs. In

       particular, the Mint continued to pay its employees and did not reduce

       any fixed costs during the periods of suspended or modified production

       as a result of the pandemic impacting the Mint's profit margin in 2020

       by approximately $6 million.

    -- Consolidated revenue increased to $2,527.6 million in 2020 (2019 -

       $1,453.4 million).

         - Gold bullion volumes increased more than 100% year over year and

           were 982.8 thousand ounces (2019 – 483.0 thousand ounces) while

           silver bullion volumes were 29.5 million ounces (2019 – 22.8

           million

           ounces).

         - Sales of numismatic products decreased to $91.9 million in 2020

           (2019 - $116.8 million) due mainly to the temporary suspension of

           numismatic product production as a result of COVID-19 in 2020.

         - Revenue from the Foreign Circulation business decreased 2% to $64.2

           million (2019 - $65.4 million) with production and/or shipments of

           838 million coins in 2020 and blanks compared to 1,308 million

           coins and blanks in 2019.

         - Canadian circulation coins produced and sold to the Department of

           Finance for inventory were 229 million pieces in 2020 (2019 – 385

           million pieces) while coins sold to financial institutions to meet

           demand decreased 8% year over year.

    -- Operating expenses, overall, increased 4% year over year to $98.5

       million (2019 – $94.5 million) as the Mint focused on enhanced

       organizational resiliency in 2020 and the development of its updated

       long-term strategic vision and the strategy for the Mint's future

       business transformation.  

    -- Cash and cash equivalents increased to $67.3 million (December 31, 2019

       - $65.5 million) after the Mint declared and paid a $20 million

         dividend to its Shareholder, the Government of Canada, in 2020. Cash

         and cash equivalents remain at the level required to support the

         Mint's operations.  

Consolidated results and financial performance

(in CAD $ millions for the years ended December 31, 2020 and 2019)

As part of its business continuity plan, the Mint continues to actively monitor

its global supply chain and logistics networks in support of its continued

operations. Despite its best efforts, the Mint expects COVID-19 to continue to

affect its performance in 2021.

To read more of the Mint's annual report for 2020, please visit www.mint.ca.

About the Royal Canadian Mint

The Royal Canadian Mint is the Crown corporation responsible for the minting

and distribution of Canada's circulation coins. The Mint is recognized as one

of the largest and most versatile mints in the world, offering a wide range of

specialized, high-quality coinage products and related services on an

international scale. For more information on the Mint, its products and

services, visit www.mint.ca.  Follow the Mint on Twitter (

https://c212.net/c/link/?t=0&l=en&o=3148183-1&h=3333557608&u=https%3A%2F%2Ftwitter.com%2FCanadianMint&a=Twitter

), Facebook (

https://c212.net/c/link/?t=0&l=en&o=3148183-1&h=2770043319&u=https%3A%2F%2Fwww.facebook.com%2FCanadianMint%2F&a=Facebook

) and Instagram (

https://c212.net/c/link/?t=0&l=en&o=3148183-1&h=1161860598&u=https%3A%2F%2Fwww.instagram.com%2Fcanadianmint%2F&a=Instagram

).

FORWARD LOOKING STATEMENTS

This Earnings Release contains forward-looking statements that reflect

management's expectations regarding the Mint's objectives, plans, strategies,

future growth, results of operations, performance, and business prospects and

opportunities.  Forward-looking statements are typically identified by words or

phrases such as "plans", "anticipates", "expects", "believes", "estimates",

"intends", and other similar expressions. These forward-looking statements are

not facts, but only estimates regarding expected growth, results of operations,

performance, business prospects and opportunities (assumptions). While

management considers these assumptions to be reasonable based on available

information, they may prove to be incorrect. These estimates of future results

are subject to a number of risks, uncertainties and other factors that could

cause actual results to differ materially from what the Mint expects. These

risks, uncertainties and other factors include, but are not limited to, those

risks and uncertainties set forth in the Risks to Performance section of the

Management Discussion and Analysit in the Mint's 2020 annual report, as well as

in Note 9 – Financial Instruments and Financial Risk Management to the Mint's

Audited Consolidated Financial Statements for the year ended December 31, 2020.

The forward-looking statements included in this Earnings Release are made only

as of April 30, 2021, and the Mint does not undertake to publicly update these

statements to reflect new information, future events or changes in

circumstances or for any other reason after this date.

Contact: Alex Reeves

         Senior Manager

         Public Affairs

         Tel: +1-(613) 884-6370

         reeves@mint.ca  

SOURCE:  Royal Canadian Mint