RE: Cashflow - Gold01 (FCF)Cash flow is the movement of money into or out of a business, project, or financial product.
Cash flow from operations of a mining company:
Revenue or sales income (paid in cash)
minus materials and labor costs
Tax doesn´t matter. Tax matters only for the estimation of net earnings. I will do that in another post
The cash flow I have estimated for the year 2013 amounts to $ 9,000,000
Below is the information I received from XBR by email:
With a 250 ton/day mining/milling plant we are targeting to produce up to 20,000 ounces of gold at a cost of $100/ton. The company targets paying a dividend of half of the free cash flow.
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Gold01, just another point, because you were quoting the company by stating that the dividend will be half of the "FREE CASH FLOW".
Per definition, the "Free Cash Flow" (FCF) does incorporate taxes, to be deducted.
Formula: FCF = operating cash flow - tax - capex
https://moneyterms.co.uk/fcf/
Therefore, tax does matter in a cash flow calculation. As I pointed out in my previous post, the company has to pay taxes, which would cause the freely available cash figure to go down.
FANTOMAS