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).

GOR 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 Gold Road Resources Limited (GOR), the free cash flow value is 97.62M.

All amounts in AUD

Operating Cash
142.69M
Capital Expenditure
-45.08M
Free Cash Flow
97.62M

Gold Road Resources 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).

GOR Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Gold Road Resources Limited (ASX:GOR).

31 Dec 202031 Dec 201931 Dec 201831 Dec 2017
Net Income80.82M-4.66M-23.85M-15.5M
Depreciation51.43M13.21M965k602k
Change To Netincome-18.03M10.72M8.29M-360k
Change To Account Receivables14k-15k1.32M904k
Change To Liabilities28.27M18.32M-8.62M-5.65M
Change To Inventory-5.08M-2.67M-2.67M-2.67M
Change To Operating Activities-1.85M-1.23M746k230k
Total Cash From Operating Activities142.69M34.04M-21.16M-20.56M
Capital Expenditures-45.08M-45.99M-186.61M-103M
Investments18.07M-50k14.45M274.76M
Total Cashflows From Investing Activities-26.98M-46.35M-172.11M190.97M
Net Borrowings-89.2M69.68M3M3M
Other Cashflows From Financing Activities-1.46M-1.46M-2.58M-2.58M
Total Cash From Financing Activities-90.65M69.68M424k560k
Change In Cash25.05M57.38M-192.84M170.97M