Ms. Marie Lemay reports

ROYAL CANADIAN MINT REPORTS PROFITS AND PERFORMANCE FOR Q1 2023

The Royal Canadian Mint Canadian Gold Reserves has released its financial results for the first quarter of 2023 that provide insight into its activities, the markets influencing its businesses and its expectations for the next 12 months.

"The mint continues to operate in an ever-changing and challenging business environment; our sustained profitability demonstrates that we are a strong and resilient organization," said Marie Lemay, president and chief executive officer of the Royal Canadian Mint. "While we are still in the midst of implementing our long-term strategy, it continues to deliver positive results and is positioning us for future growth."

The financial results should be read in conjunction with the mint's annual report, available at its website.

Financial and operational highlights:

• The financial results for the first quarter of 2023 were stronger than expected as the mint was able to respond with agility to a resurgence in global bullion market demand late in the quarter. The mint expects to meet its financial goals for 2023, as set out in the mint's corporate plan.
• Consolidated revenue decreased to $769.7-million in 2023 (2022 -- $865-million).
• Revenue from the precious metals business decreased to $747.7-million in 2023 (2022 -- $825.4-million):
  • Gold bullion volumes decreased 13 per cent quarter-over-quarter, to 318,700 ounces (2022 -- 366,900 ounces), while silver bullion volumes increased 1 per cent to nine million ounces (Moz) (2022 -- 8.9 Moz).
  • Sales of numismatic products increased 23 per cent quarter-over-quarter, mainly due to the high demand for Queen Elizabeth II's reign products.
• Revenue from the circulation business decreased to $22-million in 2023 (2022 -- $39.6-million):
  • Revenue from Canadian coin circulation products and services decreased 10 per cent quarter-over-quarter from lower circulation coin volumes, as expected.
  • Revenue from the foreign circulation business decreased 86 per cent quarter-over-quarter, a reflection of significantly lower volumes produced and shipped in 2023 as compared to 2022, due to the continuing geopolitical tensions and postpandemic economic uncertainties in the global economy.
• Over all, operating expenses increased 17 per cent quarter-over-quarter to $32.4-million (2022 -- $27.6-million), mainly due to a planned temporary increase in consulting expenses to support the digital program, as well as planned non-temporary increases in employee compensation, and travel and hospitality expenses, which have returned to normal levels.
• Cash and cash equivalents, and short-term investments increased to $124.4-million (Dec. 31, 2022 -- $79.3-million).

As part of its enterprise risk management program, 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 changes in the macroeconomic environment and other external events around the globe to continue to impact its performance in 2023. The mint continues to mitigate potential risks as they arise through its enterprise risk management process.

To read more of the mint's first quarter report for 2023, please visit the mint's website.

About the Royal Canadian Mint Canadian Gold Reserves

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.

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