Perth Mint books record $38m profit

23/09/2009 - 11:27

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The safe haven status of gold during the global financial crisis has boosted The Perth Mint's profit before tax to a record $38 million in 2008/09.

The safe haven status of gold during the global financial crisis has boosted The Perth Mint's profit before tax to a record $38 million in 2008/09.

In its full-year report released today, the Gold Corporation, which trades as The Perth Mint, said the 2009 financial year profit compared to a profit of $3.7 million reached the previous year.

Turnover hit a new record of $2.48 billion, up 200 per cent on the previous year, while the number of coins sold jumped 46 per cent to 2.7 million units. The corporation's global market share in gold bullion coins was maintained at 9 per cent.

The value of precious metals held for depositors was up 33 per cent to $2 billion.

Favourable market conditions for the precious metal saw Gold Corporation deliver a dividend of $16 million and an income tax equivalent of $13.1 million to the corporation's sole shareholder, the WA government.

Chief executive Ed 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," he said.

"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."

The corporation is maintaining a positive outlook for this financial year although economic conditions are improving.

"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," Mr Harbuz said.

"The Corporation is aiming to take advantage of the renewed interest in precious metals, with a concerted push towards improving its market shares."

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