Hycroft Mining Holding Corporation (HYMC) Cash Flow Statement

The wide variance in OCF/NI ratios across ten quarters—ranging from 0.29 in 2026Q3 to 7.79 in 2025Q4—suggests that non-cash adjustments, rather than operational cash generation, are the primary driver of reported cash conversion. In 2025Q4, operating cash flow of -$60.7M far exceeded the -$7.8M net loss, implying significant working capital movements or non-operating items that temporarily cushioned the income statement relative to actual cash outflow. Investors should treat the OCF/NI ratio as an unreliable quality-of-earnings indicator here, since with zero revenue in every quarter, neither metric reflects a functioning operating cash cycle.

The absence of any positive free cash flow quarter confirms that Hycroft is in a pure cash-consumption phase, funding exploration and feasibility work without offsetting inflows. The 2025Q4 outlier of -$60.8M warrants scrutiny as it may reflect a lumpy working capital or one-time cash event rather than a step-change in burn rate, given that subsequent quarters returned to a -$8M to -$32M range. With $181.7M in cash, the implied runway appears constrained, though the pace of drawdown has not been uniform across the ten-period window.

The consistently sub-$1M capex figure indicates that Hycroft has not yet begun the major mill construction that would be required to commercialize the sulfide resource, consistent with its pre-feasibility stage. Depreciation and amortization ranging from $301K to $5.2M per quarter also reflects a minimal depreciable asset base, meaning the existing heap leach infrastructure is likely largely impaired or fully depreciated. This capital profile should be monitored for a step-change once a bankable feasibility study triggers construction spending, which would materially alter the cash flow trajectory.

The fact that operating cash flow was less negative than net income might superficially suggest better-than-reported cash generation, but this interpretation is misleading without adjusting for the approximately $47.3M in cumulative stock-based compensation that was added back to reconcile net income to operating cash flow. Adjusting for SBC, the underlying cash burn likely tracks closer to the net loss figures, suggesting that the reported operating cash flow understates true economic consumption. This divergence warrants further investigation into other non-cash items, such as impairment charges or deferred tax movements, that may be inflating the reconciliation between earnings and cash.