2026 Market and Backlog January 21, 2026 Safe Harbor Statement Certain statements and projections contained in this presentation are, by their nature, forward- looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be ide ...

Core Insights - Meta Platforms Inc. has experienced a stock decline of 5.72% over the past five trading sessions, following a previous decline of 3.76%, largely due to concerns over AI capital expenditures announced in its FY 2025 Q3 earnings report [1] - Despite a significant correction of over 21%, shares have rebounded by 2.34% since bottoming on November 19, 2025, although the stock is down 2.00% year-over-year [1] Financial Performance - In Q3 2025, Meta reported quarterly revenue of $51.24 billion, exceeding analysts' expectations of $49.41 billion by 26.2%, with adjusted EPS of $7.25 beating expectations of $6.69 by 20.2% [3] - However, GAAP EPS of $1.05 fell 82.6% short of expectations of $6.70 [3] - Year-over-year sales growth for Q3 was 26%, marking the highest revenue growth since FY 2024 Q1 [3] Stock Buyback and Dividend - Meta authorized a $50 billion stock buyback and announced the initiation of a dividend, currently yielding 0.33%, equating to $0.52 per share quarterly or $2.08 annually [4] Revenue and Net Income Growth - From 2014 to 2024, Meta's revenue grew by 1,196.16%, from $12.466 billion to over $164 billion, while net income increased from $2.940 billion to over $62.36 billion [6] - The primary driver of this growth has been advertising revenue from its social media platforms [6] Key Business Segments - As of year-end 2023, 99% of Meta's revenue comes from its Family of Apps segment, despite its expansion into augmented and virtual reality through Reality Labs [7] Strategic Focus Areas 1. **AI Investment**: Meta is heavily investing in AI, with a focus on expanding its capabilities and improving ad revenue, which saw a 10% year-over-year increase [9] 2. **Renewable Energy Development**: Meta aims for net zero by 2030, with 100% of its operations supported by renewable energy since 2020, which is expected to reduce utility costs and carbon footprint [9] 3. **Free Cash Flow Growth**: Meta's free cash flow reached a record $43 billion in 2023, up from $21 billion in 2019, indicating a strong focus on efficiency [10] Stock Price Predictions - The median one-year price target for Meta is $821.33, representing a potential upside of 35.95% from the current share price, with a consensus "Strong Buy" rating from analysts [11] - 24/7 Wall St. projects a 2026 price target of $935.29, indicating a potential upside of 54.81% [11] - By the end of the decade, the stock price is forecasted to reach $1,216.82, reflecting a potential upside of 101.42% [13]

Core Insights - The article emphasizes the importance of identifying underpriced equities with strong upside potential and overappreciated companies with inflated valuations in investment strategies [1] - It highlights the significance of analyzing Free Cash Flow and Return on Capital for deeper investment insights beyond simple profit and sales analysis [1] - The author acknowledges that while some growth stocks may deserve premium valuations, it is crucial for investors to investigate whether the market's current opinions are accurate [1] Industry Focus - The research primarily concentrates on the energy sector, including oil & gas supermajors, mid-cap, and small-cap exploration & production companies, as well as oilfield services firms [1] - The analysis also extends to various other industries, such as mining, chemicals, and luxury goods [1]

Group 1 - The A-share market has shown a significant spring rally in early 2026, with sectors like commercial aerospace, brain-computer interfaces, AI applications, humanoid robots, and semiconductor equipment experiencing notable gains [1][18] - Recent regulatory cooling has led to warnings from major tech companies, and many prominent investors have faced account suspensions, indicating a crowded tech sector [1][18] - Institutions are increasingly favoring "old economy" sectors for their long-term investment value, viewing dividend-paying assets as one of the few reliable long-term options [1][18] Group 2 - A report indicates that sectors such as commercial aerospace, semiconductors, digital marketing, and quantum technology are currently crowded, while low-volatility dividends and white goods are less crowded [22] - The market is experiencing significant volatility, with financing leverage being reduced and major stocks facing pressure, leading to a need for diversified investment strategies [3][22] - The Hong Kong stock market is seen as having quality companies with relatively low valuations, but liquidity and sentiment issues are currently restraining its performance [23][25] Group 3 - The emergence of index funds focused on "free cash flow" has become a focal point for public funds, with over a hundred such funds established in just one year [26][29] - Performance data shows that all newly established free cash flow funds have positive returns, with the top fund achieving a return of 6.06% [10][29] - Dividend assets are highlighted as a strategic opportunity in the low-interest-rate environment, with a focus on sectors like insurance, banking, energy, and public utilities [25][31]

Core Viewpoint - Delta Air Lines is entering 2026 with a focus on maintaining discipline, sustaining cash flow, and emphasizing balance-sheet flexibility, which is a message not commonly heard from airlines [1][2][3] Financial Guidance - Delta's guidance for 2026 earnings per share (EPS) is projected to be between $6.50 and $7.50, aligning closely with Bank of America's estimate of $7.30 and the broader market estimate of $7.26 [4] - Despite a strong business year, Delta has not significantly altered its financial guidance, indicating a cautious approach to future earnings [4] Market Conditions - Bank of America notes that Delta's management is responding to economic changes in 2025 without indicating a breakdown in demand, as both businesses and consumers have adapted to volatility [5] - High demand for luxury products continues to support Delta's market position [5] Investment Appeal - Delta is viewed as a favorable investment due to its premium positioning, which may allow it to perform better than competitors that rely heavily on low-cost flying, especially in a potentially turbulent sector [6] - The airline industry is expected to maintain good capacity in the first half of 2026, which could enhance pricing and unit revenue if supply remains balanced [6] Maintenance, Repair, and Overhaul (MRO) Business - Delta's MRO segment, previously considered minor, is gaining attention as it transitions from a "nice-to-have" to a significant contributor to revenue [7] - The MRO income had stagnated around $800 million for several years, but recent changes in business operations and a rising backlog, including a notable 10-year deal with UPS, suggest potential for growth [7][9]

Core Viewpoint - Wesdome Gold Mines Ltd. anticipates a consolidated gold production of 180,000 to 205,000 ounces in 2026, driven by its fill-the-mill strategy and upcoming mineral reserve updates [1][8] Group 1: 2025 Operating Results - In Q4 2025, total ore milled reached 147,270 tonnes, an increase from 122,779 tonnes in Q4 2024 [2] - Gold production for 2025 totaled 185,575 ounces, up from 172,034 ounces in 2024, with Q4 production at 46,638 ounces [2] - The company reported a nearly tripled cash position year-over-year, exceeding $350 million, enhancing financial flexibility for 2026 [2][3] Group 2: 2026 Guidance - Gold production guidance for Eagle River is set at 105,000 to 115,000 ounces, while Kiena is expected to produce 75,000 to 90,000 ounces, marking a 13% increase over 2025 [6][8] - Average processed grades are projected at 13.0 to 14.0 g/t for Eagle River and 8.0 to 9.5 g/t for Kiena [6][8] - Total capital investment for 2026 is estimated at $205 million, with $110 million for sustaining capital and $95 million for growth capital [10] Group 3: Exploration and Growth Initiatives - The company plans a $55 million exploration budget for 2026, focusing on step-out drilling to enhance resource growth [4][15] - Key exploration targets include Kiena Deep and the Presqu'île Zone, with the latter expected to contribute significantly to mill feed once permitted [16][19] - The exploration program aims to replace and grow reserves while testing near-mine growth opportunities [15][19] Group 4: Financial Outlook - Wesdome is positioned to generate significant free cash flow in 2026, supported by higher production and expanding margins [11] - A $100 per ounce change in gold prices is estimated to impact annual free cash flow by approximately $20 million [11] - The company has repurchased 706,100 shares for a total of $14.4 million since initiating its share buyback program [6][11] Group 5: Technical Reports and Updates - Updated technical reports are expected to be released in June 2026, summarizing production and operating costs, along with long-term potential insights [14] - The reports will include an updated Mineral Reserve and Resource Statement as of December 31, 2025 [14]

Core Insights - The performance of the Southeastern Small-Cap Fund has been mixed, with the underlying developments of holdings being better than stock price returns, particularly in a challenging market environment [2][3] - The fund's portfolio has a lower percentage of big winners compared to the Russell 2000, with only 15% of its holdings up an average of 30% compared to over 35% of the index's holdings up 70%+ [3] - The fund has maintained a strong position in the mid-range performance category, outperforming the Russell 2000 in that segment [4] - The fund's exposure to decliners was limited, with only 10% of the portfolio in this category, resulting in lower average losses compared to the index [5] Performance Analysis - The fund's average performance in the -20% to +20% return bucket was better than the Russell 2000's 0% return, with key holdings like White Mountains, CNX, and Rayonier contributing positively [4] - The fund's cash position and stable investments like Kodak initially provided safety but later became performance headwinds [6] - The fund's leverage rules have been effective in avoiding pitfalls, and adjustments to the overweight rule have been made to enhance performance [7][8] Notable Contributors - Beclé, a tequila and whiskey manufacturer, was a significant contributor due to its undervaluation and strong market position [9] - GCI Liberty, a communications company in Alaska, benefited from its unique market position and insider support from John Malone [10] - Graham Holdings showed strong performance due to growth in its education and healthcare segments [11] - Mattel has positioned itself well with strong brand power and a robust balance sheet, leading to significant stock repurchases [12] - Oscar Health experienced above-market growth but was exited due to emerging industry risks [14] Notable Detractors - Boston Beer faced challenges due to declining volumes in its major brands, although management is actively addressing these issues [15] - Clearwater Paper struggled with a weak market for solid bleached sulfate paperboard, but management is focusing on share repurchases [16] - Park Hotels & Resorts was impacted by macroeconomic concerns affecting leisure travel, leading to a decision to exit the position [18] Portfolio Activity - The fund made seven new purchases during the year, including GCI Liberty and Beclé, while exiting eight positions, including Kodak and Oscar Health [20][19] Outlook - The fund anticipates continued engagement through research perspectives and podcasts, focusing on quality investments amid market volatility [21] - The fund's strategy emphasizes owning resilient, free cash flow-generating assets to navigate market fluctuations effectively [22]

Core Insights - The article emphasizes the importance of identifying underpriced equities with strong upside potential and overappreciated companies with inflated valuations in investment strategies [1] - It highlights the significance of analyzing Free Cash Flow and Return on Capital for deeper investment insights beyond basic profit and sales analysis [1] - The author acknowledges that while some growth stocks may deserve premium valuations, it is crucial for investors to investigate whether the market's current opinions are accurate [1] Industry Focus - The research primarily concentrates on the energy sector, including oil & gas supermajors, mid-cap, and small-cap exploration & production companies, as well as oilfield services firms [1] - Additionally, the analysis extends to various other industries such as mining, chemicals, and luxury goods [1]

Core Insights - New Gold Inc. achieved its 2025 production targets, generating over $532 million in free cash flow for the year, with a strong quarterly performance in Q4 2025 [1][2][4] Production Performance - Q4 2025 gold production was 107,778 ounces and copper production was 11.0 million pounds, contributing to a full year total of 353,772 ounces of gold and 50.1 million pounds of copper, meeting the guidance ranges [3][4] - The New Afton Mine produced 13,355 ounces of gold and 11.0 million pounds of copper in Q4 2025, with full year production of 63,536 ounces of gold and 50.1 million pounds of copper, also achieving its guidance [4][5] Financial Highlights - The company generated $240 million in free cash flow in Q4 2025 after capital investments exceeding $67 million, and $532 million for the full year after over $310 million in capital expenditures [4][12] - Cash generated from operations was $327 million for Q4 2025 and $898 million for the full year [4][12] Operational Efficiency - The total recordable injury frequency rate (TRIFR) for 2025 was 0.65, a 10% reduction from the previous year, marking the lowest TRIFR recorded by the company [2] - Rainy River Mine achieved a production of 94,423 ounces of gold in Q4 2025, with full year production of 290,236 ounces, reaching the top end of its guidance [4][5] Growth Initiatives - Growth initiatives are progressing well, with the C-Zone cave construction at New Afton on track for completion in early 2026 and a 45% improvement in development rates at Rainy River underground [2][4]

Core Thesis - Charter Communications, Inc. is viewed positively due to its resilient core businesses, accelerating free cash flow (FCF), and aggressive share buybacks, which support a compelling long-term risk/reward profile [1][5][6] Financial Performance - Charter reported third-quarter results with revenue and EBITDA showing modest year-over-year declines of 0.9% and 1.5% respectively, but adjusted revenue grew 0.4% and EBITDA was roughly flat when accounting for one-off merger costs and other factors [2] - The stock initially reacted negatively, gapping down 6.5% before recovering to close up 1.3% as investors analyzed the report [2] Subscriber Trends - The company lost 109,000 broadband subscribers due to intense competition, particularly from fiber and AT&T's fixed wireless access rollout, although average revenue per user (ARPU) remained stable [3] - Mobile services showed strong performance with a 22% year-over-year subscriber growth, nearing 20% penetration in its market, with potential to reach 50% over the next five years [3] Cash Flow and Share Buybacks - Charter's cash flow generation is robust, supported by tax benefits and normalized working capital, allowing the company to repurchase $1.8 billion in shares this quarter, reducing the share count by 2.4% [4] - Peak capital expenditures are expected to moderate starting in the second half of 2025, which could nearly double free cash flow over the next two years even without significant revenue growth [5] Strategic Outlook - The company is exploring strategic options, including new mobile offerings through a T-Mobile MVNO partnership, which adds potential upside [5] - John Malone's retirement is noted as the end of an era, but it is not expected to cause strategic disruption [5]