Let's say FMG make a net profit of $100m before tax. Take from that income tax of $30m and loan repayments are $40m. That leaves $30m for the MRRT. All up result is net cash flow of nil.
You must remember that capital/loan repayments are not part of the profit calculation (only the interest component). FMG must service their debt and if their debt is high enough it will take their free cash flow.
I don't know if FMG will have free cash flow or not, but the point is a business's profit is only part of the story when it comes to cash flow.
