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