RAM Rebrands for the Future

According to the recently published Royal Australian Mint (RAM) annual report for 2021/22, the circulating coin, collectible and investment business lines achieved revenue of A$182 million and a surplus of A$23 million after tax, which resulted in a 33% Return on Net Assets (RONA).

After a notable increase in the demand for circulating coin last financial year, the 2021-22 demand returned to pre-COVID levels. The RAM achieved $58 million in sales of circulating coins, equivalent to 71% of last year’s sales figure and 80% against the 2021–22 budget. Seigniorage was $25 million, a 40% reduction from the last financial year. 118 million coins were produced (versus 135 million the previous year). It also produced more than 3.4 million circulating coins for Vanuatu and over 19 million circulating coins for Papua New Guinea.

The RAM’s collectible and investment business line, even with the impact of COVID-19, performed exceptionally well, said RAM CEO Leigh Gordon, with sales of $123 million, 7% above budget and 10% above last financial year’s result. Key programs released during the reporting year were the Great Aussie Coin Hunt 3, run in partnership with Australia Post, and the Commonwealth Games coin program. The gross margin for both collectible and investment coins was $59 million, 44% above the last financial year’s result.

In 2019, the RAM commissioned a study from Kantar Consulting to determine the cultural currency of collecting and identify commercial growth opportunities.

One result was that collecting is less about ‘the object’ and far more to do with ‘rewarding experience’. Another was that the Mint was perceived by customers and the public as an organisation that may be ‘institutional and distant’.

The study also recommended that the RAM refocus from being ‘a manufacturer, distributor, and retailer of coins to being a customer-facing business that creates experiences engaging people in the exciting world of collecting’.

One outcome of the report is that RAM has created a new brand, logo, and visual identity, the gradual roll-out of which started in early 2022. It will be used to ‘tell the story of the Mint as a place that is friendly, playful, inviting and engaging — a place with which customers and visitors want to connect’ and to move the perception of the Mint from being solely a ‘government agency’ to a ‘national institution and tourist destination’.

For 2022-23, the RAM is forecasting sales of $185 million, a surplus of $39 million, and a RONA of over 30% for the next financial year.

Other key elements of the Mint’s forecasted 2022-23 performance include circulating coin revenue of $59 million, with seigniorage at $26 million, and collectible and investment coin revenue of $126 million.