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)
 
   
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 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 $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.
 
 
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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
 
 
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