Golden year for The Perth Mint and Australia’s precious metals industry
October 13, 2016
A focus on identifying new global markets for Australia’s precious metal products has paid off for The Perth Mint, which has met strong international demand for bullion bars and coins in 2015/16, and delivered a record pre-tax profit of $41.04 million.
The Perth Mint – owned and backed by the Western Australian Government - has added significant value to the export capability of both the state and the nation over the period. It has also supported and promoted Australia’s precious metals industry locally and overseas.
Australia is the world’s second largest producer of gold after China, and The Perth Mint added value to more than 10 million ounces of gold and 22 million ounces of silver in 2015/16 through the export of a wide range of bullion products.
“It has been a good year for gold and silver sales,” said Chief Executive Officer, Richard Hayes. “International demand for precious metal was high and our operations were well positioned to take advantage of market opportunities,” he said.
The Perth Mint is a vertically integrated precious metals refining, manufacturing, minting, marketing and storage business, operating internationally across the precious metals value chain. It also plays a significant role in supporting Australian producers of precious metals.
The Perth Mint Refinery maintained its industry leadership position in 2015/16 despite local and overseas competition, refining 94 per cent of Australia’s gold doré production.
“The mining companies that supply gold and silver doré to us from local and overseas mines are critical to our business,” Mr Hayes said. “In 2015/16, $13.14 billion of gold was supplied by our refinery as value-added cast bars to overseas clients.
“Our Minted Products business more than tripled its production of gold, silver and platinum coins and minted bars over the period to 16.22 million, the majority of which was marketed and sold overseas. This was a significant factor in our record result,” he said.
“The Perth Mint has a long and proud 117-year history of both supporting the Australian gold mining industry, whilst adding significantly to Western Australia’s export capabilities,” said Premier Colin Barnett. “It is also a key strategic asset that creates value for the mining sector across the whole country.”
The Perth Mint is the state’s sixth largest exporter, and has contributed $200 million to Western Australia over the last 10 years by way of dividends and tax equivalent payments.
More than 30,000 local and international customers store their precious metal, valued in excess of $3 billion, in the Mint’s central bank grade vaults. Adding to its existing storage options, which are designed to allow customers to invest easily in gold and silver without the need to take physical delivery, The Perth Mint recently established its Depository Online facility with investment options available from as little as $50.
Mr Hayes believes there is good reason to be bullish about gold and silver.
“Investing in precious metals makes good sense given the global volatility and uncertainty we see today,” he said. “It’s a safe-haven asset class that has served investors very well over time.”
Since taking the reins in July 2015, Mr Hayes and a new executive team have restructured and revitalised the organisation into a more efficient and customer focused operation.
“A revised strategic direction, a greater focus on organisational culture and performance, and appropriate investment in technology and infrastructure supported by a reinvigorated Board has delivered results, and will continue to do so through the talent and commitment of our people,” he concluded.
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