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, 2009  
 
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 17, 2009
By:
/s/ J.C. STEFAN SPICER  
   
J.C. Stefan Spicer
  
   
President & CEO
  
       
 
 
 
EXHIBIT INDEX
CENTRAL FUND OF CANADA LIMITED

Exhibit to Form 6-K for 3rd Quarter Press Release of Selected Financial Data August 18, 2009


Exhibit A:
Press Release of 3rd Quarter Financial Statements as of July 31, 2009.


 
 
 
 
EXHIBIT A
August 18, 2009

Central Fund of Canada Limited (symbols: NYSE Amex U.S. - CEF, TORONTO - CEF.A) has today released selected comparative financial information relating to net assets and results of operations for the three and nine months ended  July 31, 2009.

CENTRAL FUND OF CANADA LIMITED
Statement of Net Assets
(expressed in U.S. dollars, unaudited)
 
   
July 31
    
October 31
  
   
2009
    
2008
  
Net assets:
            
Gold bullion, at market, average cost
$707,225,090 (2008: $526,252,976)
   $ 1,101,473,626       709,313,709  
Silver bullion, at market, average cost
$602,091,235 (2008: $475,723,982)
     799,383,050       450,336,352  
Cash
     1,023,350       1,470,435  
Short-term deposits
     59,302,420       45,498,877  
Prepaid insurance, interest receivable and other
     124,343       262,962  
      1,961,306,789       1,206,882,335  
Accrued liabilities
     (1,859,998 )     (1,358,756 )
Dividends payable
     -       (1,524,677 )
Net assets representing shareholders’ equity
   $ 1,959,446,791       1,203,998,902  
Represented by:
                
Capital stock
Class A shares issued:
184,967,713 (2008: 152,467,713)
   $ 1,367,183,782       1,041,656,871  
Common shares issued:
40,000 (2008: 40,000)
     19,458       19,458  
      1,367,203,240       1,041,676,329  
Contributed surplus
     541,981       4,693,182  
Retained earnings inclusive of unrealized
appreciation of holdings
     591,701,570       157,629,391  
    $ 1,959,446,791       1,203,998,902  
                 
Net asset value per share:
                
Class A shares
   $ 10.59       7.90  
Common shares
   $ 7.59       4.90  
Exchange rate:                    U.S. $1.00 = Cdn.
   $ 1.0790       1.2165  
                 
Net asset value per share expressed in Canadian dollars:
                
Class A shares
   $ 11.43       9.61  
Common shares
   $ 8.19       5.96  
 
This analysis should be read in conjunction with Central Fund’s financial statements prepared in accordance with Canadian generally accepted accounting principles included in its 2008 Annual Report and the accompanying Management’s Discussion and Analysis.

The change in net assets as reported in U.S. dollars from period to period is primarily a result of the public offerings completed during the period and 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 $755.4 million during the nine months ended July 31, 2009 as a result of the two public offerings completed on February 3, 2009 and April 16, 2009 as well as increases in gold and silver prices.

On August 13, 2009, the Company, through a public offering, issued 11,040,000 Class A shares for proceeds of $126,120,960 net of underwriting fees of $5,255,040. Costs relating to this public offering were approximately $600,000 and net proceeds were approximately $125,520,960.  The Company used the net proceeds from this public offering to purchase 69,342 fine ounces of gold at a cost of $67,404,584 and 3,467,086 ounces of silver at a cost of $52,595,695, both in physical bar form. The balance of $5,520,681 was retained by the Company in interest-bearing cash deposits for working capital purposes.
 
 
 
 
 
ENTRAL FUND OF CANADA LIMITED
Statement of Income
(expressed in U.S. dollars, unaudited)
 
   
Nine months ended July 31
    
Three months ended July 31
  
   
2009
    
2008
    
2009
    
2008
  
Income:
                        
 Interest
   $ 317,590       688,206     $ 50,216       183,323  
 Change in unrealized   
appreciation of  holdings
     434,072,179       215,828,975       124,125,245       69,423,469  
      434,389,769       216,517,181       124,175,461       69,606,792  
Expenses:
                                
 Administration fees
     2,755,238       2,444,251       1,029,723       845,688  
 Safekeeping, insurance and   bank charges
     1,200,313       1,204,281       456,437       432,038  
 Shareholder information
     154,286       137,977       18,950       21,891  
 Directors’ fees and expenses
     97,520       101,093       32,315       34,547  
 Stock exchange fees
     96,508       97,209       31,822       32,591  
 Accounting fees
     61,418       61,462       21,923       10,066  
 Registrar and transfer agent fees
     55,343       60,511       17,822       22,581  
 Legal fees
     46,159       95,447       5,823       4,153  
 Miscellaneous
     934       909       294       275  
 Foreign currency exchange loss
     1,072       1,851       581       700  
Total expenses
     4,468,791       4,204,991       1,615,690       1,404,530  
 Net income inclusive of the   
change in unrealized   
appreciation of holdings
   $ 429,920,978       212,312,190     $ 122,559,771       68,202,262  
Net income per share:
                                
 Class A shares
   $ 2.56       1.69     $ 0.66       0.53  
 Common shares
   $ 2.56       1.69     $ 0.66       0.53  
 
The net income (inclusive of the change in unrealized appreciation of holdings) for the three months ended July 31, 2009 was $122.6 million compared to $68.2 million for the comparative period in 2008.  For the nine months ended July 31, 2009, the net income (inclusive of the change in unrealized appreciation of holdings) was $429.9 million compared to $212.3 million for the same period in 2008.  Virtually all of the income respectively was due to the change in 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.  Administration fees, which are calculated monthly based on net assets at each month end, increased during the three month period to $1,029,723 from $845,688 for the same period in 2008 and for the nine month period to $2,755,238 from $2,444,251 for the same period in 2008 as a direct result of the higher level of net assets under administration.

Expenses as a percentage of average month-end net assets for the three-month period ended July 31, 2009 were 0.08%, compared to 0.09% for the same three-month period in 2008.  Expenses as a percentage of average month-end net assets for the nine-month period ended July 31, 2009 were 0.26%, compared to 0.29% for the same nine-month period in 2008.  For the twelve months ended July 31, 2009, this expense ratio was 0.35% compared to 0.39% for the prior twelve-month period in 2008.

Central Fund of Canada Limited is a specialized investment holding company which invests primarily in long-term holdings of allocated, segregated and unencumbered gold and silver bullion and does not speculate in gold and silver prices.  At July 31, 2009, the Class A shares of Central Fund were backed 97% by gold and silver bullion and may be purchased or sold with ease on either the NYSE Amex (Symbol: CEF) or The Toronto Stock Exchange (Symbols: 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