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).

ANL 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 Amani Gold Limited (ANL), the free cash flow value is -9.05M.

All amounts in AUD

Operating Cash
-1.33M
Capital Expenditure
-7.72M
Free Cash Flow
-9.05M

Amani Gold 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).

ANL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Amani Gold Limited (ASX:ANL).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income-3.8M-18.96M-1.45M245.08k
Depreciation73.14k31.01M33.02k25.11k
Change To Netincome438.79k-13.83M-142.93k-1.76M
Change To Account Receivables-74.54k14.16k-14.51k-128.78k
Change To Liabilities2.04M289.9k-75.54k125.9k
Total Cash From Operating Activities-1.33M-1.48M-1.65M-1.5M
Capital Expenditures-7.72M-4.57M-14.12M-8.48M
Total Cashflows From Investing Activities-7.72M-4.57M-14.13M-8.81M
Net Borrowings2.1M1.35M583.97k-148.84k
Other Cashflows From Financing Activities-256.4k-467.83k-25.73k-661.43k
Total Cash From Financing Activities6.64M8.7M15.57M11.02M
Effect Of Exchange Rate16.83k2.45k18.16k-65.75k
Change In Cash-2.39M2.65M-195.11k646.02k
Issuance Of Stock4.8M7.81M15.01M11.83M