Mint Solves Problem of Missing Gold

By Daniela Cambone, Kitco News

December 21, 2009

(Kitco News) -- The Royal Canadian Mint concluded the saga of the missing gold today. It released findings of third party reviews which fully account for the difference between the Corporation’s stock keeping records and the physical amount of precious metals on hand for the 2008 fiscal year.

In an issued press release,

, President and CEO of the Royal Canadian Mint stated, "Last month, the RCMP concluded their investigation and established that no theft of gold occurred at the Mint. Today, I am pleased to announce that following extensive and thorough reviews, all precious metals for 2008 have been accounted for."

After a June 2009 review from

, it was determined that the unaccounted difference of 17,500 ounces of gold was not the result of a 2008 accounting or transactional errors. Following this, the Mint decided to engage third parties including The Banks Group, the RCMP, Microsoft Services and IBI Group to review specific aspects of its operations.

The Banks Group conducted a full review of the Mint's physical security while Microsoft Services reviewed the Corporation's computer records and security protocol. They concluded that the missing gold was not the result of criminal activities, either by theft, fraud or reasons relating to data manipulation of information technology systems.

Rather the findings revealed that the missing gold was due to three primary factors: an underestimate of physical gold on hand balance at the October 2008 count of slag by-products processed internally (5,400 ounces); underestimate of gold consumed in by-products processed externally (3,600 ounces) and an underestimate of gold in by-products consumed as part of the internal refining process (350 ounces).

"The Mint's Board of Directors accepts the conclusions of these reviews and commends management for leading a detailed and conclusive examination," said

, Chairman of the Board. "The additional checks and balances now put in place will allow the Mint to continue to lead the minting industry as well as thrive in the months and years ahead."