August
19, 2008
Central
Fund of Canada Limited (symbols: AMEX-CEF, TORONTO-CEF.A) has today released
selected comparative financial information relating to net assets and
results of
operations for the nine-months ended July 31, 2008.
CENTRAL
FUND OF CANADA LIMITED
Statement
of Net Assets
(expressed
in U.S. dollars, unaudited)
|
|
April
30
|
|
October
31
|
|
|
|
2008
|
|
2007
|
|
|
|
|
|
|
|
Net
assets:
|
|
|
|
|
|
Gold
bullion, at market, average cost
$394,735,830
(2007: $370,416,530)
|
|
$
|
723,439,845
|
|
|
635,681,207
|
|
Silver
bullion, at market, average cost
$360,523,156
(2007: $336,022,132)
|
|
|
683,892,969
|
|
|
576,419,467
|
|
Cash
|
|
|
1,988,783
|
|
|
2,330,873
|
|
Interest-bearing
cash deposits
|
|
|
27,500,000
|
|
|
25,200,000
|
|
Prepaid
insurance, interest receivable and other
|
|
|
203,107
|
|
|
202,060
|
|
|
|
|
1,437,024,704
|
|
|
1,239,833,607
|
|
Accrued
liabilities
|
|
|
(1,149,099
|
)
|
|
(1,063,139
|
)
|
Dividends
payable
|
|
|
-
|
|
|
(1,251,345
|
)
|
Net
assets representing shareholders’ equity
|
|
$
|
1,435,875,605
|
|
|
1,237,519,123
|
|
|
|
|
|
|
|
|
|
Represented
by:
|
|
|
|
|
|
|
|
Capital
stock
Class
A shares issued:
|
|
|
|
|
|
|
|
Class
A shares issued: 129,452,713 (2007: 125,134,532)
|
|
$
|
775,326,312
|
|
|
721,079,758
|
|
Common
shares issued: 40,000
|
|
|
19,458
|
|
|
19,458
|
|
|
|
|
775,345,770
|
|
|
721,099,216
|
|
Contributed
surplus
|
|
|
8,466,857
|
|
|
10,762,435
|
|
Retained
earnings inclusive of unrealized
appreciation
of holdings
|
|
|
652,062,978
|
|
|
505,657,472
|
|
|
|
$
|
1,435,875,605
|
|
|
1,237,519,123
|
|
|
|
|
|
|
|
|
|
Net
asset value per share:
|
|
|
|
|
|
|
|
Class
A shares
|
|
$
|
11.09
|
|
|
9.89
|
|
Common
shares
|
|
$
|
8.09
|
|
|
6.89
|
|
|
|
|
|
|
|
|
|
Exchange
rate:
U.S.
$1.00 = Cdn.
|
|
$
|
1.0095
|
|
|
0.9499
|
|
|
|
|
|
|
|
|
|
Net
asset value per share
expressed
in Canadian dollars:
|
|
|
|
|
|
|
|
Class
A shares
|
|
$
|
11.19
|
|
|
9.39
|
|
Common
shares
|
|
$
|
8.17
|
|
|
6.54
|
|
This
analysis should be read in conjunction with Central Fund’s financial statements
prepared in accordance with Canadian GAAP included in its 20
07
Annual
Report and the accompanying MD&A.
The
change in net assets as reported in U.S. dollars from period to period
is
primarily a result of the changing market prices of gold and silver and
the
proportion of each held by the Company. Changes in the value of the U.S.
dollar
relative to the Canadian dollar will also have an impact on net assets
when
reported in Canadian dollars.
Net
assets increased by $198.4 million during the six months ended April
30, 2008 as
a result of the increases in gold and silver prices and the public offering
of
Class A shares completed on March 5, 2008. The Company used the net proceeds
from this public offering to purchase 25,416 fine ounces of gold at a
cost of
$24,319,300 and 1,270,800 ounces of silver at a cost of $24,501,024,
both in
physical bar form. The balance of $5,399,666 was retained by the Company
in
interest-bearing cash deposits for working capital purposes.
CENTRAL
FUND OF CANADA LIMITED
Statement
of Income
(expressed
in U.S. dollars, unaudited)
|
|
Six
months ended April 30
|
|
Three
months ended April 30
|
|
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
Income:
|
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
504,883
|
|
|
538,096
|
|
$
|
191,928
|
|
|
279,728
|
|
Unrealized
appreciation (depreciation)
of
holdings
|
|
|
146,405,506
|
|
|
98,562,023
|
|
|
(58,691,683
|
)
|
|
24,551,481
|
|
|
|
|
146,910,389
|
|
|
99,100,119
|
|
|
(58,499,755
|
)
|
|
24,831,209
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administration
fees
|
|
|
1,598,563
|
|
|
1,254,330
|
|
|
837,609
|
|
|
641,809
|
|
Safekeeping,
insurance &
bank
charges
|
|
|
772,243
|
|
|
549,426
|
|
|
416,729
|
|
|
282,267
|
|
Shareholder
information
|
|
|
116,086
|
|
|
105,507
|
|
|
67,828
|
|
|
60,380
|
|
Legal
fees
|
|
|
91,294
|
|
|
45,775
|
|
|
48,501
|
|
|
24,071
|
|
Directors’
fees and expenses
|
|
|
66,546
|
|
|
62,217
|
|
|
33,449
|
|
|
26,787
|
|
Stock
exchange fees
|
|
|
64,618
|
|
|
36,967
|
|
|
36,134
|
|
|
27,725
|
|
Accounting
fees
|
|
|
51,396
|
|
|
70,805
|
|
|
33,230
|
|
|
53,805
|
|
Registrar
and transfer agent fees
|
|
|
37,930
|
|
|
36,845
|
|
|
24,150
|
|
|
21,841
|
|
Miscellaneous
|
|
|
634
|
|
|
595
|
|
|
338
|
|
|
274
|
|
Foreign
currency
exchange
loss (gain)
|
|
|
1,151
|
|
|
(130
|
)
|
|
1,151
|
|
|
(130
|
)
|
Total
expenses
|
|
|
2,800,461
|
|
|
2,162,337
|
|
|
1,499,119
|
|
|
1,138,829
|
|
Net
Income (loss) inclusive of
unrealized
appreciation
(depreciation)
of holdings
|
|
|
144,109,928
|
|
|
96,937,782
|
|
|
(59,998,874
|
)
|
|
23,692,380
|
|
Net
income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A shares
|
|
$
|
1.14
|
|
|
0.88
|
|
$
|
(0.47
|
)
|
|
0.21
|
|
Common
shares
|
|
$
|
1.14
|
|
|
0.88
|
|
$
|
(0.47
|
)
|
|
0.21
|
|
Net
income (inclusive of unrealized appreciation of holdings) for the six
months
ended April 30, 2008 was $144.1 million compared to $96.9 million for
the same
period in 2007. Virtually all of the net income for the six month period
was due
to unrealized appreciation of holdings. Certain expenses, such as administration
fees which are scaled, have varied in proportion to net asset levels
or, in the
case of stock exchange fees, with market capitalization based on the
number of
Class A shares issued. Safekeeping fees and bullion insurance costs increased,
reflecting the higher prices of gold and silver bullion and increased
bullion
holdings. Administration fees increased to $1,598,563 from $1,254,330
for the
six months based on the increased assets under administration.
Expenses
as a percentage of average month-end net assets for the six-month period
ended
April 30, 2008 were 0.20%, compared to 0.22% for the same six-month period
in
2007. For the twelve months ended April 30, 2008, this expense ratio
was 0.41%
compared to 0.45% for the prior twelve-month period.
Central
Fund of Canada Limited operates as a specialized investment holding company
which invests primarily in long-term holdings of allocated, segregated
and
unencumbered gold and silver bullion and does not actively speculate
with regard
to short-term changes in gold and silver prices. At April 30, 2008, the
Class A
shares of Central Fund were backed 98% by gold and silver bullion and
may be
purchased or sold with ease on either the American Stock Exchange (CEF)
or The
Toronto Stock Exchange (CEF.A in Canadian dollars and CEF.U in U.S.
dollars).
For
further information please contact:
J.C.
Stefan Spicer, President & CEO
Email:
info@centralfund.com
Website:
www.centralfund.com
Telephone:
905-648-7878