Ms. Marie Lemay reports

ROYAL CANADIAN MINT REPORTS PROFITS AND PERFORMANCE FOR 2023

Royal Canadian Mint Canadian Gold Reserves has released its financial results for 2023. These results provide insights into the Mint's activities, the impacts of market fluctuations on its businesses and its expectations for the next 12 months.

"The Royal Canadian Mint achieved solid results despite a sharp downturn in the precious metals market, significant investments in its digital transformation and a higher level of operating costs," said Marie Lemay, president and chief executive officer of the Royal Canadian Mint. "We will remain agile and seize new opportunities to help drive future profitability and sustainability."

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

Financial and operational highlights:

• The financial results for 2023 were below 2022 levels, as expected, driven by lower bullion volumes due to weaker demand in the global bullion market in the second half of 2023, higher precious metal costs and higher operating expenses. Results were positively impacted by the success of the numismatics products celebrating the reign of the late Queen Elizabeth II and the coronation of His Majesty King Charles III.
• Consolidated revenue decreased to $2,162-million in 2023 (2022 -- $3,282.5-million).
• Revenue from the precious metals business decreased to $2,046.1-million in 2023 (2022 -- $3,124.3-million):
  • Gold bullion and silver bullion volumes decreased 34 per cent year-over-year to 989,100 ounces for gold bullion (2022 -- 1,489,700 ounces) and 24.4 million ounces for silver bullion (2022 -- 37.1 million ounces);
  • Revenue from numismatic product sales increased 20 per cent year-over-year.
• Revenue from the circulation business decreased to $115.9-million in 2023 (2022 -- $158.2-million):
  • Revenue from foreign circulation decreased 56 per cent year-over-year due to lower volumes and an expected change in the mix of coins and blanks in new contracts;
  • Revenue from Canadian circulation decreased 8 per cent year-over-year as fewer coins were required to replenish inventories due to an increase in deposits with financial institutions and an increase in coins from the recycling program ensuring an adequate supply.
• Over all, operating expenses increased 8 per cent year-over-year to $135-million (2022 -- $125.3-million) mainly due to planned increases in employee compensation to support continuing operations, as well as expenses supporting the digital program.
• Cash and cash equivalents decreased to $59.8-million (Dec. 31, 2022 -- $79.3-million). The Mint paid a dividend of $4-million to the government of Canada in January, 2024. Cash and cash equivalents remain adequate to support the Mint's operations.

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 2024. The Mint continues to mitigate potential risks as they arise through its enterprise risk management process.

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 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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