Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF).

29M Free Cash Flow Analysis

Free cash flow, a measure commonly used by analysts to assess a company's profitability, represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

The Free Cash Flow is calculated using a number of methods including using Operating Cash Flow. Following is the formula to calculate Free Cash Flow based on Operating Cash Flow.

Free Cash Flow = Operating Cash Flow - Capital Expenditures

Using above formula to calculate Free Cash Flow for 29Metals Limited (29M), the free cash flow value is 102.82M.

All amounts in AUD

Operating Cash
152.33M
Capital Expenditure
-49.51M
Free Cash Flow
102.82M

29Metals Limited has a positive free cash flow as per the latest annual Cash flow statement released by the company. Positive free cash flow is cruscial for the financial health of a company, which can be used to pay dividends, expand operations, and deleverage its balance sheet (i.e., reduce debt).

29M Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for 29Metals Limited (ASX:29M).

31 Dec 202031 Dec 201931 Dec 2018
Net Income33.19M81.74M18.1M
Depreciation131.79M114.95M100.17M
Change To Netincome-7.67M18.41M44.42M
Change To Liabilities
Change To Operating Activities-4.98M-27.27M32.63M
Total Cash From Operating Activities152.33M187.84M195.33M
Capital Expenditures-49.51M-36.77M-39.61M
Total Cashflows From Investing Activities-107.29M-93.84M-78.03M
Net Borrowings120.72M-82.08M23.23M
Other Cashflows From Financing Activities-12.67M-11.87M-16.43M
Total Cash From Financing Activities-67.97M-60.78M-142.84M
Change In Cash-22.93M33.22M-25.54M
Repurchase Of Stock-176.03M-176.03M-185.82M