Equinox Gold Corp. (EQX) Cash Flow Statement

The gap between net income and operating cash flow in 2026Q1 and 2026Q2 appears driven by working capital outflows, particularly a $102.7M and $68.6M negative swing, respectively. This may indicate that strong reported earnings are not yet fully converting to cash, possibly due to inventory build-up or receivable timing. Investors should monitor whether this conversion gap narrows as Greenstone stabilizes.

The trajectory shows a clear shift from negative FCF in 2025Q1 (-$39.3M) to positive in 2026Q1, though 2026Q2 dipped slightly to -$1.3M. This appears to align with the Greenstone ramp-up, but the sustainability of positive FCF depends on capex moderation and working capital management. The 2025Q4 FCF margin of 41.6% was inflated by unusually low capex, so investors should focus on the underlying trend.

The elevated capex in 2024 and early 2025 reflects the final stages of Greenstone construction, with capex/revenue peaking at 43.4% in 2024Q1. As the mine ramps up, capex intensity appears to be normalizing, though 2026Q2's 26.6% remains high relative to peers like Kinross (not directly comparable). This suggests that the company is still in a capital-intensive phase, and investors should expect a gradual decline toward maintenance levels.

The persistent negative working capital changes, particularly in 2026Q1 and 2026Q2, suggest that cash is being tied up in inventory and receivables as production scales. This may be a temporary effect of the Greenstone ramp-up, but it warrants monitoring for efficiency improvements. The positive swing in 2025Q2 ($7.5M) and 2024Q4 ($38.0M) shows that the company can release cash when operations stabilize.

The significant acquisition outflows in 2026Q1 and 2025Q4 suggest continued M&A activity, consistent with management's growth strategy. The initiation of dividends in 2026Q1 and Q2, albeit modest, signals a shift toward shareholder returns as free cash flow improves. However, the lack of buybacks in most quarters suggests a preference for debt reduction and growth investments, which may be prudent given the company's leverage history.

The cumulative operating cash flow of $1.44B versus net income of $1.17B suggests that cash conversion has been strong overall, despite quarterly volatility. This may reflect non-cash charges like D&A and impairments that reduce net income but not cash. However, the gap narrowed in recent quarters, and investors should watch for any reversal if working capital demands persist.