Unassociated Document
 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 
Form 6-K

 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

 
For July 31, 2008
 

CENTRAL FUND OF CANADA LIMITED
(Translation of registrant's name into English)


Suite 805, 1323 - 15th Avenue S.W., Calgary, Alberta , Canada T3C 0X8
(Address of principal executive office)
 
 
 
[Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F o  Form 40-F x
 
[Indicate by check mark whether the registrant by furnishing the information in this Form is also hereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
YES o   NO x 

[If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A]
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

     
 
CENTRAL FUND OF CANADA LIMITED
        (Registrant)
 
 		  
 		  
 
Date     August 18, 2008              By:   /s/ J.C. STEFAN SPICER 
 
(Signature)*
*Print the name and title under the signature of the signing officer J.C. Stefan Spicer, President & CEO 

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EXHIBIT INDEX
CENTRAL FUND OF CANADA LIMITED

Exhibit to Form 6-K for Press Release of Financial Statements August 19, 2008


Exhibit A:
Press Release of 3rd Quarter Financial Statements as of July 31, 2008.
 
 
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Exhibit A
 
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 2007 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.

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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
 
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