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Cash flow statements differ from income statements and balance sheets, and every company must balance payments to investors versus investing into the business. Cash flows drive the value of the business.
Commodity price falls and China worries overhung the market at the start of 2016, and some miners posted terrible results. But February’s reporting season had some bright spots and room for optimism.
Company releases relating to acquisitions, mergers or divestments, by nature, have the objective of painting a positive outlook. A deeper dive into the facts allows us to make more educated investment decisions.