Brookfield Asset Management - the hydro cash flow story

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An interesting piece here about Brookfield Asset Management (link to be functional within 12 hours) - making the point that BAM " . . . with a focus on hydroelectric generation, . . . is one of the lowest cost producers of electricity in North America. They generate, transmit and distribute electricity in Ontario, Quebec, British Columbia, New England, Pennsylvania, Maryland, New York State, Louisiana and Brazil".

What is striking about the company is that it has over $1 billion in free cash flow generated annually.

With hydropower, the only thing that can really interfere with the steady cash flow is an inadequate rainfall period. This can raise hydropower prices quite quickly, although BAM by having diversified hydro resources is reasonably hedged against this.

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