RE: RE: RE: RE: RE: RE: IR (Marla) Recent Response True, but OCF helps show us what a company can do when they turn off the building and drilling tap. If OF is 200+ million and free cash flow is 0 this year is that bad? Next year OCF goes up to 250+ million maybe more, cap ex. drops because of Agbaou completon and free cash flow explodes.
Hounde will cost money, but the process starts again. Except this time FCF will stay highly positive. More than enough gold is already found, the rest is bonus, but drilling here isnt required. I dont discredit OCF it means a great deal, FCF is good but one leads directly to the other.
I would also pount out that a significant number of non-mining companies have close to no FCF. They have massive OCF but huge capex, no drilling of course. Yes, they do pay divididends, but they also have huge debt loads and capex. Yet they trade a 15+ x OCF, vs. EDV at perhaps 3.