Ms. Marie Lemay reports

ROYAL CANADIAN MINT REPORTS PROFITS AND PERFORMANCE FOR Q2 2023

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

"Our long-term strategy continues to allow us to seize opportunities as they arise, and grow our business for Canada and Canadians," said Marie Lemay, president and chief executive officer of the Royal Canadian Mint. "I congratulate employees for working together to meet customer bullion demand with continuous agility and develop new collector coin programs that are answering the needs of our diverse customer base."

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 second quarter of 2023 were stronger than expected as the Mint continued to respond with agility to the stronger-than-expected demand in the global bullion market in 2023. The success of the numismatics products celebrating the reign of Queen Elizabeth II and the coronation of King Charles III further supported the Mint's financial results for the quarter. Profit margins were higher in the second quarter of 2023, supported by higher gold market pricing and a more favourable mix of business compared with the second quarter of 2022. The Mint expects to exceed its financial goals for 2023, as set out in the Mint's corporate plan.
• Consolidated revenue decreased to $711.6-million in 2023 (2022 -- $841.9-million).
• Revenue from the precious metals business decreased to $686.8-million in 2023 (2022 -- $793.6-million):
  • Gold bullion volumes decreased 5 per cent quarter-over-quarter to 339,200 ounces (2022 -- 357,000 ounces), while silver bullion volumes decreased 6 per cent to 9.1 million ounces (2022 -- 9.6 million ounces).
  • Sales of numismatic products increased 14 per cent quarter-over-quarter.
• Revenue from the circulation business decreased to $24.8-million in 2023 (2022 -- $48.3-million):
  • Revenue from Canadian coin circulation products and services decreased 10 per cent quarter-over-quarter as less coins were required to replenish inventories.
  • Revenue from the foreign circulation business decreased 89 per cent quarter-over-quarter, a reflection of significantly lower volumes produced and shipped in 2023 as compared with 2022, due to the continuing geopolitical tensions and economic uncertainties in the global economy.
• Over all, operating expenses increased 10 per cent quarter-over-quarter to $32.7-million (2022 -- $29.7-million), mainly due to a planned increase in employee compensation, higher corporate donations driven by shareholder-directed donations and a planned temporary increase in consulting expenses to support the digital program.
• Cash and cash equivalents, and short-term investments increased to $95-million (Dec. 31, 2022 -- $79.3-million).

Consolidated results and financial performance

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 macro-economic 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 second quarter report for 2023, please visit its 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 one of the largest and most versatile mints in the world, producing award-winning collector coins, market-leading bullion products, as well as Canada's prestigious military and civilian honours. As an established London and COMEX good delivery refiner, the Mint also offers a full spectrum of best-in-class gold and silver refining services. As an organization that strives to take better care of the environment, to cultivate safe and inclusive workplaces, and to make a positive impact on the communities where it operates, the Mint integrates environmental, social and governance practices in every aspect of its operations.

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