EXHIBIT 99.1
February 26, 2013
Central Fund of Canada Limited (Symbols: NYSE MKT - CEF, TORONTO - CEF.A) has today released selected comparative financial information relating to net assets and results of operations for the three months ended January 31, 2013.
CENTRAL FUND OF CANADA LIMITED
Statements of Net Assets
(expressed in U.S. dollars, unaudited)
| January 31 | October 31 | ||||||||
| 2013 | 2012 | ||||||||
| Net assets: | |||||||||
| Gold bullion, at market, (cost $1,355,145,634) | $ | 2,821,159,192 | 2,913,093,648 | ||||||
| Silver bullion, at market, (cost $964,091,381) | 2,465,160,222 | 2,484,401,248 | |||||||
| Cash and short-term deposits | 49,962,573 | 55,284,208 | |||||||
| Interest receivable and other | 338,412 | 103,931 | |||||||
| 5,336,620,399 | 5,452,883,035 | ||||||||
| Accrued liabilities | (5,527,318 | ) | (3,917,068 | ) | |||||
| Dividends payable | - | (2,544,327 | ) | ||||||
| Net assets representing shareholders’ equity | $ | 5,331,093,081 | 5,446,421,640 | ||||||
| Represented by: | |||||||||
| Capital stock | |||||||||
| Class A shares issued: 254,432,713 | $ | 2,419,770,678 | 2,419,770,678 | ||||||
| Common shares issued: 40,000 | 19,458 | 19,458 | |||||||
| 2,419,790,136 | 2,419,790,136 | ||||||||
| Retained earnings inclusive of | |||||||||
| unrealized appreciation of holdings | 2,911,302,945 | 3,026,631,504 | |||||||
| $ | 5,331,093,081 | 5,446,421,640 | |||||||
| Net asset value per share: | |||||||||
| Class A shares | $ | 20.95 | 21.40 | ||||||
| Common shares | $ | 17.95 | 18.40 | ||||||
| Exchange rate: U.S. | $1.00 = Cdn. | $ | 0.9992 | 0.9996 | |||||
| Net asset value per share expressed in Canadian dollars: | |||||||||
| Class A shares | $ | 20.93 | 21.39 | ||||||
| Common shares | $ | 17.94 | 18.40 | ||||||
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 audited October 31, 2012 Annual Report and 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 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 decreased by $115.3 million during the three months ended January 31, 2013 primarily as a result of decreases in the prices of gold and silver during the period of 3.2% and 0.8% respectively.
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CENTRAL FUND OF CANADA LIMITED
Statements of Income (Loss)
(expressed in U.S. dollars, unaudited)
| Three months ended January 31 | ||||||||
| 2013 | 2012 | |||||||
| Income (loss): | ||||||||
| Interest | $ | 32,986 | 42,858 | |||||
| Change in unrealized appreciation of holdings | (111,169,876 | ) | (11,982,693 | ) | ||||
| Total income (loss) | (111,136,890 | ) | (11,939,835 | ) | ||||
| Expenses: | ||||||||
| Administration fees | 2,351,094 | 2,328,960 | ||||||
| Safekeeping, insurance and bank charges | 1,587,177 | 1,509,506 | ||||||
| Shareholder information | 57,231 | 56,770 | ||||||
| Directors’ fees and expenses | 56,863 | 51,814 | ||||||
| Accounting fees | 54,768 | 26,500 | ||||||
| Stock exchange fees | 37,955 | 38,301 | ||||||
| Legal fees | 30,012 | 41,138 | ||||||
| Registrar and transfer agent fees | 16,476 | 21,212 | ||||||
| Miscellaneous | 93 | 62 | ||||||
| Total expenses | 4,191,669 | 4,074,263 | ||||||
| Net income (loss) inclusive of the change in unrealized appreciation of holdings | $ | (115,328,559 | ) | (16,014,098 | ) | |||
| Net income (loss) per share: | ||||||||
| Class A shares | $ | (0.45 | ) | (0.06 | ) | |||
| Common shares | $ | (0.45 | ) | (0.06 | ) | |||
Net loss, inclusive of the change in unrealized appreciation of holdings, for the three months ended January 31, 2013 was $115.3 million compared to $16.0 million for the comparative period in 2012. Virtually all of the net loss was a result of the change in the unrealized appreciation of holdings during the period. The price of gold decreased by 3.2% during the three months ended January 31, 2013 while the price of silver decreased by 0.8% during the period. Certain expenses such as administration fees and safekeeping fees, have varied in proportion to net asset levels. Administration fees, which are scaled, are calculated monthly based on the total net assets at each month-end, increased during the three month period ended January 31, 2013 to $2.4 million, from $2.3 million for the comparative period in 2012 as a direct result of the higher level of average net assets under administration during the period. Similarly, safekeeping fees increased to $1.6 million from $1.5 million during the comparative period in 2012.
Expenses as a percentage of average month-end net assets (the “expense ratio”) for the three month periods ended January 31, 2013 and 2012 remained unchanged at 0.08%. For the twelve month period ended January 31, 2013, the expense ratio was 0.31% compared to 0.30% for the twelve month period ended January 31, 2012.
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 January 31, 2013, the Class A shares of Central Fund were backed 99.1% by gold and silver bullion and may be purchased or sold with ease on either the NYSE MKT (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
