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2005 Annual Report – "Thriving" - Royal Canadian Mint

2005 Annual Report – "Thriving" - Royal Canadian Mint

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Outlook: Growth in numismatic revenues continues to depend upon the <strong>Mint</strong>’s ������������������������ ability to �����������������<br />

develop coins ����������������<br />

with �������������������� collector ��������������������<br />

appeal. The most popular coins have been those enhanced by<br />

advanced technologies, ($ in millions) many of which have been ($ in developed millions) for the <strong>Mint</strong>’s numismatic (millions of pieces)<br />

program. Over the past decade, more than a dozen coins have won prestigious international<br />

awards.<br />

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In <strong>2005</strong>, the <strong>Mint</strong> continued to explore new technologies, such as laser-etched photography<br />

and enameling, while advancing the applications of technologies developed over �����<br />

the<br />

past decade. In 2006, the <strong>Mint</strong> will issue products that incorporate several technologies,<br />

including a coin with both a hologram and colour.<br />

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While the market for collectibles, including coins, �� �� �� �� �� �� �� �� �� �� �� ��<br />

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declining, the <strong>Canadian</strong> gift market is<br />

estimated to be worth $18 billion a year and growing. This is ��<br />

a ��<br />

highly ��<br />

fragmented ��<br />

and ��<br />

competitive<br />

market, but <strong>Mint</strong> sales are strong and growing rapidly. Continued growth depends<br />

on developing products with relevant emotional themes that can compete effectively for<br />

retail space by offering compelling value to consumers and retailers.<br />

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(millions of pieces)<br />

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Foreign ������������������<br />

Coins<br />

The <strong>Mint</strong> designs and produces circulation and numismatic coins �����������������<br />

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and ������������������� ready-to-strike<br />

blanks for ($ customers in millions) <strong>–</strong> mostly governments, �������� central banks ($ in and millions) treasuries <strong>–</strong> around (millions the of pieces<br />

world. It also sells or licenses coin production technology, tooling and consulting services,<br />

including the management of alloy recovery and recycling programs.<br />

Summary of results: The <strong>Mint</strong> produced 1.062 billion coins and blanks for 14 countries in<br />

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<strong>2005</strong>, compared to 10 in 2004, with shipments increasing to 1.12 billion pieces from<br />

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677 million in 2004. Revenues increased to $43.8 million from $24.3 million ���<br />

in 2004,<br />

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reflecting the increase in volume and the mix of denomination and metal content of<br />

coins produced.<br />

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Explanation of results: Over the past year, the <strong>Mint</strong> has been able to re-establish<br />

traditional customer relationships while demonstrating the effectiveness of its multi-ply<br />

technology. The major drivers behind performance in <strong>2005</strong> include:<br />

• Production of 1 billion coins for Thailand. This contract was secured in 2004, with<br />

production extending from late 2004 to early <strong>2005</strong>. The <strong>Mint</strong> has also secured the<br />

���������($ in millions)<br />

contract to produce 400 million new 2 Baht coins for Thailand.<br />

(thousands of ounces)<br />

• A contract to replace New Zealand’s low denomination circulation coins. The contract (gross weight rece<br />

* excluding numismatic<br />

was awarded (US$ per after ounce) a thorough study of competing ($ in millions) technologies by the Bank ofin New millions of troy o<br />

Zealand with the assistance of engineering consultants. New Zealand will withdraw its<br />

existing coinage and launch the new coins in 2006. The contract not only confirms the<br />

superior nature of the <strong>Mint</strong>’s multi-ply technology, it extends the list of customers who<br />

have selected the <strong>Mint</strong>’s plating technology.<br />

• Submitted bids for 55 contracts, and was awarded 14 of those contracts.<br />

(gross weight received<br />

in millions of troy ounces)<br />

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(at December 31)<br />

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($ in millions)<br />

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($ in thousands)<br />

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25

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