Gold Corporation, which trades as The Perth Mint, achieved a record profit before tax of $38 million and capitalised on the favourable market conditions to deliver a dividend of $16 million and an income tax equivalent of $13.1 million to its sole shareholder, the Government of Western Australia.
Gold Corporation is pleased to announce it has achieved a record profit before tax of $38 million for the financial year ended 30 June 2009.
The 2009 figure compares to a profit of $3.7 million in 2008 and was achieved on the back of a major increase in market demand for precious metal bullion and coins.
Gold Corporation experienced a sharp increase in global demand for its minted products, with unit sales of coins, bars and medallions increasing by 50% to 2.7 million (1.8 million units previously). World market share in gold bullion coins was maintained at about 9%.
"The strong result was testament to Gold Corporation’s investment in additional and improved factory equipment, ensuring we could streamline production and take advantage of the favourable market conditions" said Ed Harbuz, Chief Executive Officer.
The strength of Gold Corporation’s operating result was also evident in the performance of its depository business, with the value of customer precious metal deposits increasing from $1.5 billion to $2 billion.
Mr Harbuz said the exceptional performance was attributable to the organisation’s ability to benefit from the sharp rises in global demand for gold coins and bullion.
"The strength of our business here in Western Australia and the reach of our established global sales and distribution network allowed us to take full advantage of the burgeoning demand for precious metals in all forms.
"Precious metals are traditionally a safe haven investment and the uncertainty and volatility in global equity markets resulted in significantly higher levels of activity across all of Gold Corporation’s business divisions.
"Despite the global economic downturn, demand also increased across Gold Corporation’s numismatic coin business, with sales of commemorative collector coins strong both in Australia and in worldwide markets."
Mr Harbuz said the performance of the Depository business was particularly pleasing, with the value of client’s precious metals on deposit with Gold Corporation reaching the $2 billion mark for the first time.
The Perth Mint facility in Perth also welcomed 77,000 visitors through its tourist attraction during the year. With the planned investment in the refurbishment the Visitor Experience, Gold Corporation is hopeful it can build on the tourist element of its operations.
Another pleasing aspect of the year was the improved performance of AGR Matthey (the gold refining and precious metal products business 40% owned by Gold Corporation).
"While the global economic environment is likely to improve over the next 12 months, and with demand for precious metals expected to ease, Gold Corporation maintains a positive outlook for the next financial year."
"The Corporation is aiming to take advantage of the renewed interest in precious metals, with a concerted push towards improving its market shares."
Additional Highlights Follow:
- Record profit before tax of $38 million (previous year $3.7 million)
- Record turnover of $2.48 billion (up 200%)
- Number of coins sold up 46% to 2.7 million
- Value of precious metals held for depositors up 33% to $2 billion
- Major benefits from investor flight to safety during Global Financial Crisis
- Sharp rises in demand for precious metal bullion and coins
- 9% global market share in gold bullion coins.
For full details of Gold Corporation’s 2008/09 financial results, visit http://www.perthmint.com.au/about_us_the_perth_mint_annual_reports.aspx.
About Gold Corporation
Gold Corporation was established in 1987 to take over the operations of The Perth Mint (founded as a branch of the Royal Mint in 1899) and to launch Australia’s official bullion coin program.
Today, Gold Corporation facilitates investment in precious metals through the supply of coins and bars, and provides the opportunity for investment in precious metals without the issues associated with taking physical metal, via the various products offered through Perth Mint Depository.
The Perth Mint has a reputation for innovation and superb quality in its commemorative and numismatic coins and is an important supplier of precious metal blanks to other major mints around the world.
With over 80% of its turnover contributed by exports, Gold Corporation is the eleventh largest exporter in Western Australia. It also operates a tourist attraction based on the themes of gold, coins and the history of The Perth Mint.