Core Viewpoint - Gold Royalty Corp. reported a second consecutive quarter of positive free cash flow, along with record revenue, adjusted EBITDA, and operating cash flow, indicating strong financial performance and growth potential [5]. Financial Performance - The company achieved record revenue and adjusted EBITDA, reflecting the successful curation of its asset portfolio over the past five years [5]. - Positive free cash flow for the second consecutive quarter demonstrates the company's effective capital management and operational efficiency [5]. Capital Allocation Strategy - The company emphasized its approach to capital allocation, indicating a focus on maximizing growth and value creation from its assets [6].

Financial Data and Key Metrics Changes - Nutrien reported adjusted EBITDA of $1.4 billion in Q3 2025, a 42% increase compared to the prior year [11] - The company raised its full-year potash sales volume guidance to 14-14.5 million tons, supported by strong offshore demand [12] - Capital expenditures were lowered by 10% year-to-date through optimization efforts, with guidance now at $2-$2.1 billion [29] Business Line Data and Key Metrics Changes - Upstream fertilizer sales volumes increased by approximately 750,000 tons compared to the same period last year [3] - Potash operations generated adjusted EBITDA of $733 million in Q3 2025, higher than last year due to increased net selling prices [11] - Nitrogen operations achieved a 94% ammonia utilization rate, up 7 percentage points from the previous year [4] - Phosphate operations generated adjusted EBITDA of $122 million in Q3 2025, with an 88% operating rate [13] Market Data and Key Metrics Changes - Global potash shipment projections for 2025 were increased to a record 73-75 million tons, with expectations for continued demand growth in 2026 [9][10] - In Brazil, fertilizer usage increased by 2% year-over-year, with Nutrien being the largest supplier of potash [46] - North American crop nutrient volumes are expected to be slightly higher in Q4 2025, with per ton margins similar to the prior year [15] Company Strategy and Development Direction - Nutrien is focused on simplifying its portfolio and reviewing non-core assets, with divestitures expected to generate approximately $900 million in gross proceeds [6] - The company is on track to achieve a $200 million cost reduction target one year ahead of schedule [5] - A strategic review of the phosphate business is underway, evaluating options including reconfiguring operations, strategic partnerships, or potential sale [7][23] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive outlook for the business, supported by expectations for healthy crop input demand and growth in global potash shipments in 2026 [17] - The company anticipates limited new global capacity additions in 2026, which supports a tight supply and demand balance [10] - Management highlighted strong crop yields and favorable weather conditions as supportive of nutrient replenishment needs for the upcoming crop year [36] Other Important Information - Nutrien allocated $1.2 billion to dividends and share repurchases in the first nine months of 2025, representing a 42% increase from the prior year [5] - The company is committed to enhancing cash returns to shareholders through stable and growing dividends and ratable share repurchases [29] Q&A Session Summary Question: How does cash generation for the phosphate business compare to the rest of the business? - Management indicated that phosphate contributes about 6% of EBITDA, prompting a strategic review to optimize free cash flow [22] Question: Can you reflect on initiatives undertaken since becoming CFO? - The CFO noted significant progress on strategic objectives set at the investor day, including upstream fertilizer sales volume growth and cost reduction targets [26] Question: What are the expectations for crop nutrient demand in Q4? - Management expects nitrogen volumes to be up, potash volumes to be flat, and phosphate volumes to be slightly down compared to last year [35] Question: What is the outlook for the Brazilian market? - Management confirmed that the improvement plan in Brazil is on track, with a 2% increase in fertilizer usage year-over-year [46] Question: What are the possibilities for the Trinidad asset? - The company is exploring optimal operating conditions for Trinidad, which contributes less than 1% of free cash flow [78] Question: What is the optimal outcome for the phosphate strategic review? - Management is considering various alternatives, including reconfigured operations and potential partnerships or sales, focusing on maximizing free cash flow [49]

Financial Data and Key Metrics Changes - The third quarter EBITDA per ton was $111, which is 25% above the historical average margin, indicating structural improvements in the company's financial performance [3][4] - The underlying business generated approximately $0.5 billion in free cash flow for the first nine months, despite investing close to $1 billion in strategic growth projects [4][5] - The company expects to capture $0.7 billion in structural EBITDA improvement this year, with a medium-term impact of $2.1 billion remaining unchanged [3][4] Business Line Data and Key Metrics Changes - The company reported record levels of shipments at its Calvert facility, contributing positively to North American operations [20] - In Europe, the expectation is that imports will decrease by about 40%, allowing the company to capture a larger market share [14] Market Data and Key Metrics Changes - The outlook for the business has improved compared to three months ago, with new trade tools proposed by the European Commission expected to support a more sustainable steel sector [4][5] - The demand in Europe is currently moving sideways, with stable order books across the group [28][50] Company Strategy and Development Direction - The company is focused on enabling the energy transition by supplying steel for new energy and mobility systems, as well as investing in high-quality electrical steels [5] - The company aims to maintain a diversified asset base across geographies and markets, with a clear capital return policy that has allowed for a 16% compound growth in dividends over the past five years [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business outlook, citing improvements in trade conditions and the potential for higher capacity utilization in Europe [4][32] - The company is actively engaging with governments to address high energy costs in Ukraine and is committed to maintaining production under challenging conditions [58][59] Other Important Information - The company has a clear policy for capital allocation and is focused on ensuring that the European business can earn its cost of capital [32] - The company is confident in the recovery of its Mexican operations and does not expect the operational issues faced this year to recur in 2026 [10][54] Q&A Session Summary Question: What unusual or exceptional costs should be considered for 2026? - Management indicated that there are no significant changes expected regarding tariffs, and operational losses in Mexico are not anticipated to recur in 2026 [10][12] Question: How much can production be flexed in Europe if imports decline? - The company expects to capture a larger market share as imports decrease, with production capacity in Europe exceeding current output levels [14] Question: What is the CapEx profile for the medium term? - The company plans to maintain a CapEx range of $4.5 billion to $5 billion, including strategic and maintenance investments [24] Question: How is the company managing order books for 2026? - The order book remains stable, with no significant changes anticipated, and the company is preparing for a stronger 2026 [28] Question: How confident is the company about the release of working capital in Q4? - Management expressed confidence in a significant release of working capital, driven by seasonal factors and operational normalizations [46][47] Question: What is the company's stance on the situation in Brazil and India? - The company remains bullish on Brazil and continues to invest, while in India, demand is strong despite low prices due to new capacity [56][57] Question: What is the company's approach to CO2 emissions and free allocations? - The company does not expect to lose free emissions meaningfully and anticipates that CBAM will create a level playing field for costs [82][86] Question: How is the Calvert EAF ramp progressing? - The ramp-up is on track, with expectations to end the year at a run rate of 40% to 50% [91] Question: What is the company's view on the European trade policy proposals? - Management is hopeful for the swift implementation of trade measures to support the domestic industry [97]

Financial Data and Key Metrics Changes - Underlying revenue growth for Q3 was 5%, consistent with H1 run rate, driven by sports medicine and advanced wound management [2][3] - Revenue for the quarter was $1.5 billion, with a reported growth of 6.3% due to a 130 basis point tailwind from foreign exchange [5] - Free cash flow guidance raised from over $600 million to around $750 million, reflecting improved working capital discipline and operational efficiencies [3][12] Business Line Data and Key Metrics Changes - Orthopedics grew 4.1% on an underlying basis, with strong performance in hips in the US offsetting softer knee sales [5][7] - Trauma and extremities grew 7.5%, with strong contributions from Evos plating system and Atos shoulder [8] - Advanced wound management grew 6%, with advanced wound care growing 1.1% and Bioactives up 12.2% [9][10] Market Data and Key Metrics Changes - US market grew 5.5%, while other established markets grew 3.9% and emerging markets grew 5.4% [5] - Excluding China, underlying revenue growth was 6.4%, with joint repair growth at 13% [3][9] - China headwinds are beginning to abate, with expectations of a gradual recovery [3][8] Company Strategy and Development Direction - Innovation remains central to growth, with over half of growth coming from products launched in the last five years [13][15] - The company is focused on cash and capital efficiency, expecting further margin expansion beyond 2025 [12][42] - Upcoming capital markets day will outline the next phase of growth and midterm priorities [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting revenue guidance for Q4, supported by new customer integrations and product placements [21][31] - The impact of Medicare reimbursement changes is anticipated to be a headwind for Advanced Wound Management sales in 2026 [10][41] - Management acknowledged the ongoing portfolio rationalization in US knees, which has led to some volume loss but remains a strategic focus [27][39] Other Important Information - The company launched several new products, including the Alevi Complete Care dressing and the Legion medial stabilized knee [14][15] - The company is committed to building a sustainable business in China, evaluating product lines for investment [43] Q&A Session Summary Question: Concerns about revenue guidance and Q4 performance - Management remains confident in Q4 revenue guidance, citing strong sales funnel and new customer integrations [21][31] Question: US knees performance and portfolio rationalization impact - Management acknowledged the gap between US knees and market performance, attributing it to ongoing portfolio rationalization [27][39] Question: Margin guidance and headwinds for 2026 - Management expects margin expansion despite headwinds from knees and hips, with specific guidance to be provided at the capital markets day [40][42] Question: Pricing trends and competitive landscape - Management noted a return to more normalized pricing levels in orthopedics, with expectations of continued competitive positioning [64][65] Question: Other recon performance and expectations for Q4 - Management expressed optimism about Q4 performance in other recon, citing strong placements and utilization [71]

Core Viewpoint - The A-share market experienced a rebound on November 6, with the Shanghai Composite Index returning to 4000 points, indicating a positive shift in market sentiment and potential investment opportunities in the near future [1] Group 1: Market Performance - The National Free Cash Flow Index rose over 2.2%, with seven constituent stocks hitting the daily limit up, including Changbao Co., Haili Heavy Industry, Weichai Power, and others [1] - The largest free cash flow ETF (159201) followed the index's upward trend, attracting a total net inflow of 950 million yuan over the past 17 days, with intraday trading volume exceeding 330 million yuan [1] Group 2: Financial Indicators - National Investment Securities reported that the Q3 financial results for A-shares showed improvements in three core indicators: profit, revenue, and ROE compared to H1 [1] - The simultaneous improvement in free cash flow and net profit margin suggests that the earnings bottom for A-shares is becoming clearer, increasing the likelihood of a transition to a fundamental bull market over the next six months [1] Group 3: ETF and Fund Characteristics - The free cash flow ETF (159201) and its linked funds focus on industry leaders with abundant free cash flow, covering sectors such as non-ferrous metals, automotive, petrochemicals, and power equipment, which helps mitigate risks associated with single industry fluctuations [1] - The fund management annual fee is 0.15%, and the custody annual fee is 0.05%, both of which are among the lowest in the market [1]

Core Viewpoint - A-share companies are showing positive signs of profit improvement, with a significant increase in free cash flow in the third quarter [1] Group 1: Company Performance - Overall capital expenditure of listed companies has turned to negative growth, indicating a potential capacity contraction similar to the anti-involution context seen a decade ago [1] - There is a noticeable turning point in the performance of resource sectors, with high free cash flow yield observed [1] Group 2: Investment Opportunities - Traditional industries such as steel and non-ferrous metals have experienced a prolonged decline in capital expenditure, and any improvement in demand could lead to a significant price increase [1] - Investors are encouraged to pay attention to the cash flow ETF (159399), which has outperformed the CSI Dividend Index and the CSI 300 Index for nine consecutive years from 2016 to 2024 [1] - The underlying index of the cash flow ETF focuses on large and mid-cap stocks, with a higher proportion of central state-owned enterprises compared to similar cash flow indices [1] - The cash flow ETF has consistently paid dividends for eight consecutive months since its listing, making it an attractive option for interested investors [1]

Core Insights - The Guozheng Free Cash Flow Index has increased by 0.35% as of November 5, 2025, with significant gains in constituent stocks such as Changbao Co. and Haili Heavy Industry, which hit the daily limit, while other stocks like Hengdian East Magnetic and Guodian Nanzi rose over 6% [1][3] - The Free Cash Flow ETF (159201) has shown a 2.61% increase over the past two weeks, ranking first among comparable funds [1] - The Free Cash Flow ETF has seen continuous net inflows totaling 950 million yuan over the past 17 days, reaching a record high of 4.666 billion shares and a total scale of 5.495 billion yuan [1][3] Performance Metrics - The Free Cash Flow ETF's financing buy-in amount reached 25.0061 million yuan, with a financing balance of 88.466 million yuan as of November 5, 2025 [3] - Over the past six months, the ETF's net value has increased by 23.17%, with a maximum monthly return of 7% and a historical profit probability of 100% for holding periods of six months [3] - The ETF has the lowest management fee rate of 0.15% and a custody fee rate of 0.05% among comparable funds [3] Index Composition - As of October 31, 2025, the top ten weighted stocks in the Guozheng Free Cash Flow Index include China National Offshore Oil Corporation, SAIC Motor, Wuliangye, Gree Electric Appliances, and others, collectively accounting for 54.79% of the index [4]

Financial Data and Key Metrics Changes - Sunoco reported a record third quarter with adjusted EBITDA of $496 million, an increase from $470 million a year ago, excluding one-time transaction-related expenses [4] - Distributable cash flow, as adjusted, was $326 million for the third quarter [4] - The company declared a distribution of $0.9202 per common unit, representing a 1.25% increase compared to the previous quarter, resulting in a trailing 12-month coverage ratio of 1.8 times [5][6] Business Line Data and Key Metrics Changes - In the fuel distribution segment, adjusted EBITDA was $238 million, compared to $214 million in the second quarter and $253 million in the third quarter of last year [8] - Volumes in the fuel distribution segment reached 2.3 billion gallons, up 5% from the previous quarter and 7% year-over-year [8] - The pipeline system segment reported adjusted EBITDA of $182 million, an increase from $177 million in the second quarter and $147 million in the third quarter of last year [10] - The terminal segment delivered adjusted EBITDA of $76 million, compared to $73 million in the second quarter and $70 million in the third quarter of last year [11] Market Data and Key Metrics Changes - The company has become the largest independent fuel distributor in the Americas following the acquisition of Parkland Corporation, which is expected to provide significant financial benefits [2][3] - The combined entity is projected to deliver over 15 billion gallons of refined products, enhancing its position in the Atlantic Basin [14] Company Strategy and Development Direction - The immediate priorities for the company include integrating Parkland and restoring the balance sheet to a four times leverage ratio within 12 months [15] - The company expects over $250 million in synergies from the Parkland acquisition, with a focus on expense management and optimizing gross profit [15][20] - The company aims for free cash flow to exceed $1 billion annually in the near future, enhancing its capital allocation strategy [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another record year, with all business segments performing well [13] - The company anticipates that the fundamentals for the fuel distribution business remain strong, despite broader market challenges [52] - Management highlighted the importance of scale and key assets in maintaining a competitive advantage in the market [14] Other Important Information - The company successfully completed the acquisition of Parkland Corporation for approximately $9 billion, enhancing its financial position and scale [2][3] - Sunoco Corp will begin trading on the New York Stock Exchange under the ticker SUNC, broadening investment options [4] Q&A Session Summary Question: Synergies from the Parkland acquisition - Management confirmed a floor of over $250 million in synergies, with both expense and commercial opportunities identified [18][20] Question: Dividend equivalency for Sunoco Corp - Management stated that minimal corporate income taxes are expected for at least five years, supporting the distribution strategy [23] Question: Growth potential for distribution - Management indicated that the acquisition of Parkland positions the company for meaningful distribution growth beyond the current target of at least 5% [26][27] Question: Impact of Hurricane Melissa - The business impact from Hurricane Melissa was largely limited to Jamaica, with no material impact expected on fourth quarter results [29][30] Question: Opportunities in West Coast terminaling assets - Management expressed optimism about leveraging the refinery and terminal assets in response to potential market shifts due to refinery closures [33][34] Question: 2026 guidance and expectations - Management plans to provide guidance early next year, emphasizing strong performance from both the Parkland and legacy businesses [41][42]

Group 1 - Funds are suitable investment products for ordinary people [2] - New investors should consider what type of funds are appropriate for them [2] - There is a free course available to help new investors understand fund investment from scratch [2] Group 2 - Dividend indices are a common type of strategy index [5] - Strategy indices are based on specific investment strategies and cover a wide range of industries [6] - There are four main types of indices: broad-based indices, strategy indices, industry indices, and thematic indices [6] Group 3 - The core strategy of dividend indices is to select stocks with high dividend yields [8] - Dividend yield is calculated by dividing the total cash dividends by the company's market capitalization [8] - For example, a company with a market cap of 10 billion and annual dividends of 500 million has a dividend yield of 5% [8]

Group 1 - The A-share market experienced a low opening on November 5, with the Guozheng Free Cash Flow Index declining approximately 0.65%. Stocks such as Changbao Co. and Hailu Heavy Industry hit the daily limit up, while Yun Aluminum and Xiamen Xiangyu led the declines [1] - The largest free cash flow ETF (159201) has seen continuous net inflows over the past 16 days, totaling 0.893 billion yuan, reaching a new high of 5.418 billion yuan in total assets [1] - According to China Merchants Securities, the market is entering a period of performance, event, and policy vacuum, leading to a phase of volatility as it awaits new developments by year-end. Corporate earnings showed a significant rebound in Q3, with a notable improvement in free cash flow, indicating stable fundamentals in the A-share market [1] Group 2 - The Free Cash Flow ETF (159201) and its linked funds (A: 023917; C: 023918) closely track the Guozheng Free Cash Flow Index, selecting stocks with positive and high free cash flow after liquidity, industry, and ROE stability screening. The index is characterized by high quality and strong risk resistance, suitable for long-term investment [2] - The fund management fee is set at an annual rate of 0.15%, and the custody fee at 0.05%, both of which are among the lowest in the market, maximizing benefits for investors [2]