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 -106.23M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

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 201930 Jun 201830 Jun 201730 Jun 2016
Net Income-26.66M-12.88M-6.13M-31.5M
Change To Netincome20.48M4.83M-4.81M20.88M
Change To Account Receivables93k1.09M-2.21M1.63M
Change To Liabilities18.07M948k7.13M452k
Change To Inventory-9.94M-9.94M-9.94M-9.94M
Change To Operating Activities-260k265k123k29k
Total Cash From Operating Activities13.58M-5.45M-5.56M-4.05M
Capital Expenditures-119.82M-127.09M-43.59M-3.11M
Total Cashflows From Investing Activities-90.31M-127.07M-43.58M-1.71M
Net Borrowings19.39M113.56M113.56M-31k
Total Cash From Financing Activities57.37M147.99M40.31M25.82M
Effect Of Exchange Rate85k8k5k-9k
Change In Cash-19.27M15.47M-8.82M20.04M
Issuance Of Stock37.98M35.82M42.39M26.95M