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).

## A1G 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 African Gold Limited (A1G), the free cash flow value is -1.81M.

All amounts in AUD

Operating Cash
-618.82k
Capital Expenditure
-1.19M
Free Cash Flow
-1.81M

African Gold Limited has a negative 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).

## A1G Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for African Gold Limited (ASX:A1G).

31 Dec 202031 Dec 201931 Dec 2018
Net Income-715.14k-983.49k-1.49M
Depreciation1.85k1.47k1.47k
Change To Netincome65.28k228.37k1M
Change To Account Receivables-10.56k-61.3k-61.67k
Change To Liabilities-25.83k-91.14k156.75k
Change To Operating Activities65.57k13.93k9.65k
Total Cash From Operating Activities-618.82k-892.17k-383.95k
Capital Expenditures-1.19M-1.25M-1.25M
Total Cashflows From Investing Activities-1.19M-1.74M-32.73k
Other Cashflows From Financing Activities-4.58k-267.7k-67.59k
Total Cash From Financing Activities1.65M4.23M473.77k
Effect Of Exchange Rate390-27.69k-27.69k
Change In Cash-160.43k1.58M57.09k
Issuance Of Stock1.65M4.5M541.36k