ANNUAL REPORT June 2026 Notes to the Consolidated Financial Statements 7. RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH FLOW FROM OPERATING ACTIVITIES 2026 A$’000 2025 A$’000 Profit / (loss) after income tax expense 7,113 (39,228) Depreciation and amortisation expense 17,432 12,037 Impairments expense - 5,820 Share based payments expense 17,233 3,736 Net foreign exchange loss / (gain) 1,678 (180) Change in fair value of financial assets & liabilities 1,701 1,612 Loss on disposal of fixed assets 866 941 Non-cash finance costs (accretion / amortised borrowing costs) 1,740 (8,643) Operating profit before working capital movements 47,763 (23,905) (Increase)/ Decrease in trade and other receivables (37,824) 9,178 Increase in other receivables (non-current) (881) (489) Increase in prepayments (3,243) (996) Increase in inventories (5,271) (16,370) (Decrease)/ Increase in trade and other payables (6,751) 14,428 Increase in provisions 612 1,236 Net movement in working capital (53,358) 6,987 Net cash used in operating activities (5,595) (16,918) 8. FINANCIAL ASSETS AND LIABILITIES Financial assets Note 2026 A$’000 2025 A$’000 Cash and cash equivalents 8(a) 28,180 1,874 Trade and other receivables 8(b) 43,733 10,694 Financial assets 8(b) 1,465 3,066 73,378 15,634 Financial liabilities Note 2026 A$’000 2025 A$’000 Trade and other payables 8(c) 32,612 62,493 Lease liabilities 8(c) 12,286 14,379 Convertible notes 8(c) - 2,779 Financial liabilities 8(c) 10,804 12,542 Borrowings 8(c) 24,506 43,608 80,208 135,801 EQ Resources Limited Annual Report 2026 75
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