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).

AJM 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 Altura Mining Limited (AJM), the free cash flow value is -6.26M.

All amounts in AUD

Operating Cash
-5.26M
Capital Expenditure
-996.05k
Free Cash Flow
-6.26M

Altura Mining 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).

AJM Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Altura Mining Limited (ASX:AJM).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-72.8M-93.74M-26.66M-12.88M
Depreciation4.49M13.15M4.2M287k
Change To Netincome44.63M23.1M20.48M4.83M
Change To Account Receivables8.6M-7.25M93k1.09M
Change To Liabilities-40.48M182.22k18.07M948k
Change To Inventory22.52M-1.8M-9.94M-9.94M
Change To Operating Activities-867.67k-2.8M-260k265k
Total Cash From Operating Activities-5.26M-42.81M13.58M-5.45M
Capital Expenditures-996.05k-6.13M-119.82M-127.09M
Total Cashflows From Investing Activities201.42M-5.81M-90.31M-127.07M
Net Borrowings-197.41M-503.68k19.39M113.56M
Other Cashflows From Financing Activities-739.36k-774.3k-569k-1.4M
Total Cash From Financing Activities-198.14M41.48M57.37M147.99M
Effect Of Exchange Rate57.79k-63.95k85k8k
Change In Cash-1.93M-7.2M-19.27M15.47M