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).

A1M 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 AIC Mines Limited (A1M), the free cash flow value is -5.45M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

AIC Mines 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).

A1M Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for AIC Mines Limited (ASX:A1M).

31 Dec 202031 Dec 201931 Dec 201830 Jun 2018
Net Income-6.84M-8.16M-1.4M-2.31M
Change To Netincome1.36M4.89M-2.08M-87.37k
Change To Account Receivables-313k98k-104k-51.29k
Change To Liabilities325k669k-198k89.89k
Change To Operating Activities17k119k-158k-158k
Total Cash From Operating Activities-5.41M-2.31M-3.86M-2.31M
Capital Expenditures-37k-160k-109k-196.16k
Total Cashflows From Investing Activities808k2.48M-109k-196.16k
Other Cashflows From Financing Activities-437k-31k-58k-643.99k
Total Cash From Financing Activities4.24M-31k-58k9.56M
Change In Cash-356k145k-4.03M7.05M
Issuance Of Stock4.68M4.68M4.68M10.2M