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)
|
|
July
31
|
|
October
31
|
|
|
|
2008
|
|
2007
|
|
Net
assets:
|
|
|
|
|
|
|
|
Gold
bullion, at market, average cost
$461,023,618
(2007: $370,416,530)
|
|
$
|
824,347,803
|
|
|
635,681,207
|
|
Silver
bullion, at market, average cost
$426,562,775
(2007: $336,022,132)
|
|
|
784,737,613
|
|
|
576,419,467
|
|
Cash
|
|
|
1,540,033
|
|
|
2,330,873
|
|
Interest-bearing
cash deposits
|
|
|
38,500,000
|
|
|
25,200,000
|
|
Prepaid
insurance, interest receivable and other
|
|
|
241,272
|
|
|
202,060
|
|
|
|
|
1,649,366,721
|
|
|
1,239,833,607
|
|
Accrued
liabilities
|
|
|
(1,737,495
|
)
|
|
(1,063,139
|
)
|
Dividends
payable
|
|
|
-
|
|
|
(1,251,345
|
)
|
Net
assets representing shareholders’ equity
|
|
$
|
1,647,629,226
|
|
|
1,237,519,123
|
|
Represented
by:
|
|
|
|
|
|
|
|
Capital
stock
Class
A shares issued:
140,567,713
(2007: 125,134,532)
|
|
$
|
918,877,671
|
|
|
721,079,758
|
|
Common
shares issued: 40,000
|
|
|
19,458
|
|
|
19,458
|
|
|
|
|
918,897,129
|
|
|
721,099,216
|
|
Contributed
surplus
|
|
|
7,245,650
|
|
|
10,762,435
|
|
Retained
earnings inclusive of unrealized
appreciation
of holdings
|
|
|
721,486,447
|
|
|
505,657,472
|
|
|
|
$
|
1,647,629,226
|
|
|
1,237,519,123
|
|
|
|
|
|
|
|
|
|
Net
asset value per share:
|
|
|
|
|
|
|
|
Class
A shares
|
|
$
|
11.72
|
|
|
9.89
|
|
Common
shares
|
|
$
|
8.72
|
|
|
6.89
|
|
Exchange
rate:
U.S.
$1.00 = Cdn.
|
|
$
|
1.0257
|
|
|
0.9499
|
|
|
|
|
|
|
|
|
|
Net
asset value per share
expressed
in Canadian dollars:
|
|
|
|
|
|
|
|
Class
A shares
|
|
$
|
12.02
|
|
|
9.39
|
|
Common
shares
|
|
$
|
8.94
|
|
|
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 $410.1 million during the nine months ended July 31,
2008 as
a result of the public offerings completed on March 5 and July 22, 2008
as well
as increases in gold and silver prices. The Company used the net proceeds
from
the March 5th 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. The Company
used
the net proceeds from the July 22nd public offering to purchase 67,397
fine
ounces of gold at a cost of $66,287,788 and 3,369,900 ounces of silver
at a cost
of $66,039,619, both in physical bar form. The balance of $11,122,993 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)
|
|
Nine
months ended July 31
|
|
Three
months ended July 31
|
|
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
688,206
|
|
|
806,744
|
|
$
|
183,323
|
|
|
268,648
|
|
Unrealized
appreciation (depreciation) of holdings
|
|
|
215,828,975
|
|
|
69,262,872
|
|
|
69,423,469
|
|
|
(29,299,151
|
)
|
|
|
|
216,517,181
|
|
|
70,069,616
|
|
|
69,606,792
|
|
|
(29,030,503
|
)
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administration
fees
|
|
|
2,444,251
|
|
|
1,876,888
|
|
|
845,688
|
|
|
622,558
|
|
Safekeeping,
insurance &
bank
charges
|
|
|
1,204,281
|
|
|
856,523
|
|
|
432,038
|
|
|
307,097
|
|
Shareholder
information
|
|
|
137,977
|
|
|
123,555
|
|
|
21,891
|
|
|
18,048
|
|
Directors’
fees and expenses
|
|
|
101,093
|
|
|
95,860
|
|
|
34,547
|
|
|
33,643
|
|
Stock
exchange fees
|
|
|
97,209
|
|
|
64,693
|
|
|
32,591
|
|
|
27,726
|
|
Legal
fees
|
|
|
95,447
|
|
|
52,545
|
|
|
4,153
|
|
|
6,770
|
|
Accounting
fees
|
|
|
61,462
|
|
|
83,684
|
|
|
10,066
|
|
|
12,879
|
|
Registrar
and transfer agent fees
|
|
|
60,511
|
|
|
55,637
|
|
|
22,581
|
|
|
18,792
|
|
Miscellaneous
|
|
|
909
|
|
|
1,096
|
|
|
275
|
|
|
501
|
|
Foreign
currency
exchange
loss
|
|
|
1,851
|
|
|
1,166
|
|
|
700
|
|
|
1,296
|
|
Total
expenses
|
|
|
4,204,991
|
|
|
3,211,647
|
|
|
1,404,530
|
|
|
1,049,310
|
|
Net
Income (loss) inclusive of
unrealized
appreciation
(depreciation)
of holdings
|
|
$
|
212,312,190
|
|
|
66,857,969
|
|
$
|
68,202,262
|
|
|
(30,079,813
|
)
|
Net
income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
A shares
|
|
$
|
1.69
|
|
|
0.61
|
|
$
|
0.53
|
|
|
(0.27
|
)
|
Common
shares
|
|
$
|
1.69
|
|
|
0.61
|
|
$
|
0.53
|
|
|
(0.27
|
)
|
Net
income (inclusive of unrealized appreciation of holdings) for the three
months
ended July 31, 2008 was $68.2 million compared to a net loss (inclusive
of
unrealized depreciation of holdings) of $30.1 million for the comparative
period
in 2007. For the nine months ended July 31, 2008, the net income (inclusive
of
unrealized appreciation of holdings) was $212.3 million compared to $66.9
million for the same period in 2007. For both the three and nine month
periods,
virtually all the income or loss was due to unrealized appreciation
(depreciation) respectively 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 $2,444,251
from
$1,876,888 for the nine months based on the increased assets under
administration. Legal fees increased due to changes in accounting policies
and
regulatory requirements.
Expenses
as a percentage of average month-end net assets for the nine-month period
ended
July 31, 2008 were 0.29%, compared to 0.33% for the same nine-month period
in
2007. For the twelve months ended July 31, 2008, this expense ratio was
0.39%
compared to 0.44% 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 July 31, 2008, the
Class A
shares of Central Fund were backed 97.6% 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