Ms. Marie Lemay reports

ROYAL CANADIAN MINT REPORTS PROFITS AND PERFORMANCE FOR 2022

Royal Canadian Mint Canadian Gold Reserves has released its financial results for 2022 that provide insight into its activities, the markets influencing its businesses and its expectations for the next 12 months.

"Although the Mint was challenged by geopolitical events, inflation and supply chain disruptions, our One Mint strategy gave us the agility to adjust and respond effectively to our customers' needs throughout 2022," said Marie Lemay, president and chief executive officer of the Royal Canadian Mint. "While part of our business experienced cyclical variances, the Mint, with the support of its employees, delivered strong financial results and value to Canadians."

The financial results should be read in conjunction with the Mint's annual report available on it website. All monetary amounts are expressed in Canadian dollars, unless otherwise indicated.

Financial and operational highlights:

• The financial results for 2022 were as expected, below 2021 levels, given the exceptional performance seen in 2021 and planned operational maintenance in 2022. The Mint still exceeded its financial goals for 2022, as set out in the Mint's corporate plan.
• Consolidated revenue decreased to $3,282.5-million in 2022 (2021 -- $3,550.8-million). Revenue from precious metals businesses decreased to $3,124.3-million in 2022 (2021 -- $3,348.2-million):
  • Silver bullion volumes decreased 2 per cent to 37.1 million ounces (2021 -- 37.7 million ounces) and the silver market price also decreased year-over-year. These decreases were partially offset by an increase in gold bullion volumes of 1 per cent year-over-year to 1,489,700 ounces (2021 -- 1,470,500 ounces);
  • Revenue from numismatic product sales increased to $117.7-million in 2022 (2021 -- $112.3-million) due to higher sales from the Mint's new Opulence coin collection, international resale coins, premium bullion products and other silver products.
• Revenue from circulation businesses decreased to $158.2-million in 2022 (2021 -- $202.6-million):
  • Revenue from Canadian coin circulation products and services increased 7 per cent year-over-year from a different mix of denominations sold year-over-year under an updated memorandum of understanding with the Department of Finance combined with higher alloy recovery program (ARP) metric tonnes processed in 2022 partially offset by lower circulation coin volumes and lower program fees;
  • Revenue from the foreign circulation business decreased 45 per cent year-over-year due to significantly lower volumes produced and shipped in 2022 as compared with 2021 due to the slower-than-expected reopening of foreign economies postpandemic and the rising geopolitical and economic uncertainties on the global economy.
• Over all, operating expenses increased 13 per cent year-over-year to $125.3-million (2021 -- $110.8-million) due primarily to planned temporary increases in expenses to support the digital program and business transformation, higher corporate donations driven by shareholder directed donations, as well as increases in travel-related expenses as the Mint started to transition back to in-person meetings in 2022. The increase in marketing and sales expenses was due to the increased marketing campaigns consistent with higher sales of numismatic products.
• Cash and cash equivalents increased to $79.3-million (Dec. 31, 2021 -- $69.3-million).

About Royal Canadian Mint Canadian Gold Reserves

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.

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