Centerra Gold Inc. (CGAU) Cash Flow Statement

The ratio of operating cash flow to net income is highly unstable across the ten quarters, falling below 1.0 in most periods and turning negative in 2024Q4 when net income was negative while operating cash flow stayed positive at $92.8M. This pattern suggests that reported profit is frequently inflated or deflated by non-cash items, working capital timing, and non-operating gains rather than steady operating output. The 2026Q3 ratio of 1.61 looks encouraging, but it appears to reflect a single period of working capital release rather than a durable shift in conversion quality.

Free cash flow was negative in four of the ten quarters, including the most recent 2026Q2 at -$23.0M, which reflects capital spending that frequently consumed most or all of operating cash flow. The peak 25.0% margin in 2025Q3 appears to have been driven by a favorable working capital inflow of $27.4M rather than repeatable operating strength. Investors should monitor whether the recent Öksüt recovery translates into consistently positive free cash flow over the next several quarters.

Capital intensity appears high relative to the depreciation charge, with D&A generally between $25M and $36M per quarter while capex frequently exceeded $60M, suggesting spending that goes beyond simple asset replacement and likely includes growth or development programs. This gap between capex and depreciation indicates the company is reinvesting well above its maintenance base, which limits the cash available for shareholder returns. Whether this spending earns an adequate return remains an open question that warrants further investigation into project-level disclosures.

The consistent negative working capital drag through 2025 and 2026 suggests receivables, inventory, or concentrate shipment timing are absorbing cash, which may reflect the gold-in-circuit build-up tied to the Öksüt restart. Such inventory accumulation can reverse sharply, as the 2025Q3 inflow of $27.4M illustrates, meaning current operating cash flow may overstate or understate underlying earnings power. Investors should expect continued quarter-to-quarter noise until the restart inventory normalizes.

The aggregate figures mask significant intra-period gaps, including a $52.5M net loss in 2024Q4 that coincided with $92.8M of operating cash inflow, and a $292.2M net income quarter that produced only $161.7M of operating cash flow. Over the longer horizon, the company appears to convert earnings into cash at a reasonable rate, but the quarter-level dispersion indicates reported profitability should not be extrapolated without adjustment. The balance of evidence suggests cash reality is more stable than the earnings line alone implies.