ROYAL CANADIAN MINT KICKS OFF 2016 ON THE UP
After a pretty good year in 2015 that we reported last week, the first quarter figures for the RCM are even better, showing this prolific mint is on the right track. Strong bullion sales have increased overall revenue by 22% compared to the same quarter in 2015, with gold sales, mostly Maple Leaf coins, up 18.7% to 212,600 ounces, and silver, again mostly Maple Leaf sales, up 19.3% to a very healthy 10.6m ounces (from 8.9m in Q1/2015). Could this be a year the RCM breaks one million ounces of gold bullion coins?
Numismatics are doing even better. Sales of numismatic gold products increased by 73%, although silver numismatics were down slightly from $32.8m in Q1/2015, to $31m last quarter. Sell outs were up, with 14 releases achieving that status.
Most interestingly, overall numismatics revenues fell 8% overall due to a downward adjustment caused by “recent returns of face value coins“, which the mints management is stated to be “taking steps to mitigate sales returns in the future“. Is the face value bandwagon starting to come off the rails?