Volumes Down, Sales Up for Australian Coins

The Royal Australian Mint (RAM) has now published its report and accounts for 2022-2023.

In the year, 110 million Australian circulating coins were supplied to banks, a decrease of 19 million from 2021-2022. RAM noted that demand was stronger in the first half year with higher denominations predominating. The sales value of the coins was $64 million, a 10% increase over 2021- 2022.

In addition to domestic coins, RAM produced more than 29.4 million circulation coins for Papua New Guinea, 3.5 million for Tonga and 2.9 million for Vanuatu.

There was a modest increase of $2 million in seigniorage in the year to $27 million, reflecting increased costs in areas such as interest compensation payments to the banks and the cost of underutilised resources.

RAM also noted that variations in metal prices can impact the profitability of individual coin denominations, and

that the continued realisation of a positive seigniorage for the circulating coin programme overall demonstrates that circulating coins for the Australian economy is a service that it can sustain for the immediate future (it does not receive an appropriation from the Australian government but is self-funded through the sale of coins).

The death of Queen Elizabeth II in September 2022 had a significant impact on RAM’s performance, both increasing public interest in collectible and investment coins and encouraging more speculators to enter the market. This placed additional strain on the RAM’s relationship with its more traditional collectors and stretched its capacity. Some collectable and investment programs were deferred or cancelled.

Despite these pressures, RAM’s programmes still achieved sales of $122 million in the year compared with $123 million the previous year.

RAM noted that while there was a reduction in the impact of COVID-19 in the year, other changes in the broader environment had a negative impact on business. Although circulating coin outcomes were delivered, staff shortages or supply chain issues meant some key initiatives could not progress.

RAM returned $55 million to the Commonwealth Office Public account for its 2021-2022 activities and is currently finalising the payment to be made for 2022- 2023, but noted that its circulating coin, collectibles and investment business lines achieved a revenue of £185 million and a surplus of $14 million after tax, a 32% return on net assets (RONA).

Forecast for 2023-2024

Budgeted revenue is forecast to be $188 million, a surplus of $24 million and a RONA in excess of 30% based on circulation coin revenue of $53 million (versus $64 million for 2022-23), seigniorage including gallery funding of $13 million ($27 million for 2022/23), and collectible and investment coin revenue of $137 million ($122 million for 2022/23).