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).

## AMI 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 Aurelia Metals Limited (AMI), the free cash flow value is 45.11M.

All amounts in AUD

Operating Cash
136.64M
Capital Expenditure
-91.53M
Free Cash Flow
45.11M

Aurelia Metals Limited has a positive 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).

## AMI Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Aurelia Metals Limited (ASX:AMI).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income42.92M29.44M36.02M99.11M
Depreciation77.93M57.76M54.45M37.29M
Change To Netincome20.67M19.87M18.54M-4.19M
Change To Account Receivables-11.9M517k549k-2.79M
Change To Liabilities18.69M-1.19M5.12M21.76M
Change To Inventory-4.67M-1.45M-4.97M-12.25M
Change To Operating Activities-7M5.58M-2.91M9.68M
Total Cash From Operating Activities136.64M110.53M106.78M151.76M
Capital Expenditures-91.53M-88.23M-70.2M-29.75M
Other Cashflows From Investing Activities-28.61M-26.01M2.09M-38k
Total Cashflows From Investing Activities-285.39M-111.48M-68.65M-89.75M
Dividends Paid-8.74M-17.47M-17.47M-17.47M
Net Borrowings28.8M-6.22M-878k-109.96M
Total Cash From Financing Activities144.87M-23.69M-753k-29.95M
Effect Of Exchange Rate-694k-562k-562k-562k
Change In Cash-4.57M-25.2M37.38M32.06M
Issuance Of Stock124.81M124.81M125k89.25M