PR89673

OTTAWA, ON, May 21, 2021 /PRNewswire=KYODO JBN/ --

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

results for the first quarter of 2021 that provide insight into our activities,

the markets influencing our businesses and our expectations for the next 12

months.

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"The Mint's strong performance in the first quarter is a testament to the

dedication, resilience and flexibility of its employees," said Marie Lemay,

President and CEO of the Royal Canadian Mint. "Throughout the COVID-19

pandemic, the Mint has continued to prioritize the health and safety of its

employees while ensuring that critical services it provides to the essential

mining and financial sectors continued uninterrupted. In the shadow of its

pandemic response, the Mint began implementing a new long-term strategy, laying

the groundwork for sustained profitability in the years to come."

The financial results should be read in conjunction with the Mint's 2021 first

quarter 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 81% in the first quarter of 2021 and

       consolidated profit before income tax and other items was $26.0 millio

       (2020 – $6.5 million) for the quarter. The Mint saw increases in revenue

       across both its Precious Metal and Circulation businesses. The increase

       was mainly due to higher bullion volumes sold in the quarter, which

       increased the Mint's revenue and cost of sales proportionately. The

       Mint's profit margin percentage improved 1.6% quarter over quarter

       mainly due to stronger performance from the sales of numismatic products

       and foreign circulation coins in 2021.

    -- Consolidated revenue increased to $902.8 million in 2021 (2020 - $498.4

       million).

       Revenue from Precious metal businesses increased to $852 million in 2021

       (2020 - $465.2 million):

       -- Gold bullion volumes increased more than 65% quarter over quarter and

          were 328.5 thousand ounces (2020 – 198.1 thousand ounces) while

          silver bullion volumes increased 52% and were 9.9 million ounces

          (2020 – 6.6 million ounces).

       -- Sales of numismatic products increased to $31.5 million in 2021 (2020

          - $21.3 million) as a result of an increase in sales of gold products

          in 2021 and the temporary suspension, in 2020, of numismatic product

          production as a result of COVID-19 pandemic.

Revenue from Circulation businesses increased to $50.8 million in 2021 (2020 -

$33.1 million):

       -- Revenue from the Foreign Circulation business increased 162% quarter

          over quarter with production and shipment of 319 million foreign

          coins and blanks, compared to 265 million coins in 2020.

       -- Canadian circulation coins produced and sold to the Department of

          Finance for inventory were 77 million pieces in the quarter (2020 –

          76 million pieces).

    -- Overall, operating expenses increased 15% quarter over quarter to $25.6

       million due mainly to planned consulting and contingent workforce costs

       related to the implementation of the Mint's business transformation

       initiatives.

    -- Cash and cash equivalents increased to $91.1 million (December 31, 2020

       - $67.3 million).

Consolidated results and financial performance

(in CAD $ millions)

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 especially in light of the declaration of

emergency and province wide stay-at-home order in Ontario which began on April

8, 2021.  The situations in Ontario and Manitoba continue to be monitored and

the Mint will adapt its operations accordingly.

To read more of the Mint's First Quarter Report for 2021, 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, Facebook and

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 Analysis 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 May 20, 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.

Alex Reeves, Senior Manager, Public Affairs, Tel: (613) 884-6370,

reeves@mint.ca

SOURCE: Royal Canadian Mint (RCM)