Demand for bullion continues to power revenue and activity at the Royal Canadian Mint in 2020, based on the third quarter report released Nov. 23. 

The RCM increased its revenue by 115 percent in the third quarter as a result of the strong global market demand for bullion. Sales of gold reached 300.1 thousand ounces in the third quarter of 2020, compared to 96.3 thousand ounces in the same quarter of 2019.

Silver was also a strong seller in that time frame, notching sales of 8.2 million ounces, compared to 6.6 million year-over-year.

Though bullion sales are robust, numismatic sales were weaker, thanks to a realigned production schedule as a result of COVID-19 “and a planned smaller, more resonant product portfolio in 2020,” the RCM said, explaining the 15 percent drop in collectibles sales against 2019 figures.

Circulating coin demand

Demand for circulation coins remained low, which contrasts with the reality of a coin shortage in Canada’s neighbor, the United States.

The RCM sold 93 million pieces of Canadian circulation coins to the Department of Finance in the third quarter, almost half of the amount sold in the same quarter in 2019, which was 178 million pieces.

International coin contracts at the RCM reflect similar reduced demand for circulation coinage around the world, as foreign circulation revenue decreased 31 percent quarter-over-quarter, with production and shipment of 98 million foreign coins and blanks, compared to 350 million coins in the same period in 2019.

Consolidated profit before income tax and other items was $10.2 million Canadian ($8 million U.S.) for the third quarter, compared to $6.7 million Canadian in 2019.

The increase was mainly due to higher bullion volumes sold in the quarter, which increased the Mint’s revenue and cost of sales proportionately.

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