In 2018–19 the Mint reported an PBT (Profit Before Tax) on continuing operations of $11.9 million and made cash payments of $24.1 million to the Commonwealth’s Official Public Account for seigniorage.
The Mint’s net assets increased by $8.4 million over the previous year, resulting from an increase in total assets of $5.1 million and a decrease in total liabilities of $3.3 million. The movement is a result of increased inventory and cash at year-end, and a reduction in tax and general payables.
Australian circulating coin inventory is administered by the Mint on behalf of the Commonwealth. A total of 111.77 million pieces of administered inventory were sold to the commercial banks in 2018–19 with a face value of $58.15 million. A total of 106.28 million Australian circulating coins were produced, a nine per cent reduction from last year. This is in keeping with the longer-term downward trend for circulating coin demand.
The National Coin Collection, for which the Mint is the custodian, was independently valued in 2018–19 at $21.9 million.
COIN SUPPLY CHANGE
The operational aspects of the Australian circulating coin supply environment are managed in accordance with the 2017 bilateral Coin Supply Agreements between the Mint and each of the four major commercial banks.
The Coin Consultative Committee, comprising representatives from the Mint and the four major banks, meets bi-monthly. The committee considers data and analysis provided by the Mint on coin holdings and the underlying demand for coins in Australia. At a broader level, it monitors and reviews industry-wide issues that may impact on coins.
The committee has a keen interest in identifying opportunities for improvements in coin usage, production, handling, transport and storage. Periodically, guests with specialist industry knowledge are invited to meet with the committee to discuss specific issues.
Three LEAN Program projects were completed in 2018–19:
- a stocktake of coin fairs and Mint shop inventory
- an assessment of product terminations, and
- a process review on standardising product quality.
The projects were implemented to ensure products:
- were not ‘over-processed’ to standards above customers’ expectations
- did not result in unnecessary time and cost implications for the Mint, and
- were managed and accounted for when removed for use in coin fairs and roadshows.
A product life cycle system has been developed to ensure products are not kept indefinitely, and that inventory is identified for destruction as required.
Mint staff focus continued through a number of development and education initiatives during the year including:
- LEAN training workshops to enhance collaboration, improve performance and focus team efforts
- formal education opportunities including LEAN Six Sigma yellow belt training – 45 staff members completed this course during the year, and
- ‘just do it now’ weekly meetings.