SARB Reports on Mint Performance and New Coin Series

The Reserve Bank of South Africa (SARB) runs the South African Mint as a wholly owned subsidiary. In its 2022/23 annual report it highlighted the issue of the fourth decimal coin series on 3 May 2023, the first new coin series in 34 years. This was delivered at a lower conversion cost than budgeted and with a lower waste rate.

SARB has a mission to ensure the cost-effective availability and integrity of currency, to optimise the currency supply chain and to enhance the integrity of banknotes and coins.

The South African Mint is accredited to the ISO 9001 (quality), 14001 (environmental management) and 45001 (occupational health and safety) standards. It is a founding member of the sustainability sub-committee of the International Mint Directors Association.

During the year the Mint increased its shareholding in Prestige Bullion from 60% to 80%. Prestige Bullion distributes and sells bullion Krugerrand coins to local and international markets. The Mint is responsible for the manufacturing while the marketing and distribution of the coins is carried out by Rand Rand Refinery.

800 million coins were delivered on time and in full to SARB during the year. As a result, coin stocks were at over six months of the required amount. The value of coins in circulation rose from R7,087 million to R7,424 million, a 4.8% increase.

Prestige Bullion introduced one kilogramme and five ounce collectable ‘Big 5’ gold and silver coins. While domestic demand was lower than previously, international sales were strong and diversification in the US market was achieved.

The Mint achieved EBITDA of R188.7 million against a budget of R 83 million and compared with R119 million in 2021/22. The Mint contributed R381 million to Group profits compared with R360 million in 2021/22.

Prestige Bullion, meanwhile, achieved:

The Mint and Prestige Bullion achieved a profit before tax of R683 million, compared with R777 million the year before. Record sales of collectable coins was achieved, with 70% being exported. A rally in commodity prices also contributed to these results.