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).

AHK 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 Ark Mines Limited (AHK), the free cash flow value is -1.22M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Ark 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).

AHK Cash Flow Statement History

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

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income6.89M-2.45M-1.57M-647.01k
Change To Netincome-7.04M1.95M679.22k-118.04k
Change To Account Receivables40.19k3.17k21.09k-63.1k
Change To Liabilities-1.07M188.21k369.27k-32.38k
Total Cash From Operating Activities-1.18M-276.88k-97.71k-803.86k
Capital Expenditures-45.81k-43.42k-231.46k-634.01k
Total Cashflows From Investing Activities-45.81k-33.42k17.34k-706.19k
Dividends Paid-2.84M-2.84M-2.84M-2.84M
Net Borrowings14k3k3k3k
Other Cashflows From Financing Activities4.01M305.44k-1.88k-1.88k
Total Cash From Financing Activities1.18M349.44k64.12k64.12k
Change In Cash-39.27k39.13k-16.25k-1.51M