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Strategies & Market Trends : Winter in the Great White North

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To: Elizabeth Andrews who wrote (1344)8/28/2001 11:54:08 AM
From: tyc:>  Read Replies (1) of 8273
 
Thank you for your remarks Elizabeth.

Yes ! the total FCF of an enterprise is revenues LESS ALL EXPENDITURES of the enterprise throughout its life. It is what is left over after all expenditures have been covered. There is no benefit in an enterprise for anybody other than this.

The essential point is that Inmet shares these benefits (FCF) equally with the owners, and will start enjoying them at the same time as they will. Before that, they are simply getting their money back.

Of course, if revenue from this exceptional mine does not cover expenditures, then nobody benefits !

This IS simple .... I really don't think I have oversimplified.
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