Source: press release
The net income in those first 9 months of the year was $30.6M, or $1.10 per share. That’s fine, but we ultimately care more about the company’s cash flows as those are the main source of funding for the sustaining and expansion capex, as well as for the planned lithium expenses (see later).
In those first 9 months, AMG generated a total operating cash flow of $40.7M, which is approximately $42.7M in adjusted operating cash flow. The total capex came in at $22.7M, but it’s important to realize the sustaining capex was just $9M, with the remaining capex used for expansion (at the tantalum mine and the graphite mine). Even though no details have been announced for the expansion capex and what the impact will be in the future, we hope to learn more at the end of this year when the annual report will be completed.
Anyway, if we would deduct the sustaining capex from the adjusted operating cash flow, AMG generated approximately $33M in free cash flow, and will very likely boost this to in excess of $40M on a full-year basis (and we are hoping to see $45M). This would result in approximately 1.5 EUR per share, which means AMG currently has a free cash flow yield of 9%, which isn’t expensive at all, given the push to expand the current operations.