Timing Commodity Cycles - The Next BIG Opportunity | Max Porterfield

having me. I'm really excited to be here. Yeah. So, you know, I've been following what your company has been doing for quite a while. We've talked about it in the past on this show. I'll get to that a little bit later. So I'm kind of familiar with you, but for those who really aren't familiar with you, just give us a little bit on your background and what

you're doing. Yeah. So I'm originally from Texas. I got my undergraduate Texas Tech University, Border Raged, Texas out of West Exist originally and um again, starting my career in the natural resource space with a comic a US Global Investors. Spent nearly six years there and that's a fuch boutique

investment firm. That specializes as in natural resources investing the run a mutual fund portfolio there really known across the world for their their expertise with that, and so that was a tremendous amount of education really on what does an institutional investor look at when looking at to make investments into the mining space in particular, which is what my next move was. So then I moved to Canada.

In I did some investor relations there's some two notable companies for a couple of years to really understand the capital markets, and then went all in, so to speak, and taking over klin X and refocusing the company to these exploration within these prolific mining camps in Canada to make the next discoveries to really continue those long lived histories within those communities. Yeah, so that's cool. Worked with at US Global Investors. I had Frank Holmes on the

show UM a few months back. He was he was great. I I learned a lot from him until he was awesome. So that's cool. That's a good person to mentor under, I would imagine. Yeah, so you went to uh you went to Canada in two thousand and twelve UM and started working in the capital markets. UM. I guess specifically trying to like maybe raise money for mining companies, but that probably wasn't the best time, right, That was kind of like at the peak before we went into a

long bear market. Yeah, I know, I'm my whole career, I in a lot of ways has been in a bear market. I mean I came out of a university in two thousands and six, joined US Global and it was a nice you know right up watching the assets grow and really the last secular bull market for commodities. But then that will popp ur the financial crisis and and really it's been a tough time through throughout that past,

you know, over a decade at this point. But I think we are re entering a new secular bull market for the commodities space. And really always said to myself that you want to ride the wave when the wave comes, and yeah, certainly that's what we're doing. You're with calin x and hitting these discoveries when the winds really behind our sales in a lot of ways. So you know, these cycles they come, and when they come, they come really big. And we're in the middle a very big

cycle coming force in the basic process metal space. In my opinion, Yeah, I love. I love what you said. So I'm in I'm in California. I'm a surfer. So I always talk about like investing like a surfer. Right, I can see a storm brewing from far away, I contract that the storm's coming, and then I wait and I just ride that wave. Um. And so that's kind of what you're talking about. So it's kind of always work with my analogy. But the other thing I like about what you said is, you know you've kind of

been through these bear markets and so um. I love the quote that a smooth seas never made a skilled sailor. Right, you have to go through these tough times and you've made it, so you're definitely prepared for that. But talking about this wave coming or you said the wind at our back, Um, what do you see being the catalyst with the gold price? I mean, obviously we were in this gold you know, bull market recently, but now we've seen this weakness in the price and some people maybe

are starting to doubt that. But you think we have this bull market head, talk to me about that. Yeah, most certainly. I think we're in the early stages of a secular bull market for the real assets out there. And that's just do basically, you know, simply to the what's going on and the government spending. The amount of

printing of dollars is unprecedented. The last time you've seen anything like this was during the financial crisis, and that was probably three trillion dollars of the FED and that took a gold move from six dollars announced north announce at that time, right, and that was you know what I got to experience the end of that in terms of the last rodeo for a very very short period of time. And you know, this is the situation now

with the COVID. Whether you agree with the reaction or not, I'll leave that up to other people's debate a different conversation. But the amount of money printing is just next level. You're looking probably three times that in terms of money printing. In the magnitude that's going to have on real sets, it's gonna be tremendous. And you know, ideally placed you know, owning real estate, goal precious medals, based medals art I think is it's gonna have a big run to Yeah.

Is again, you know, you just can't print that kind of currency and think nothing's gonna happen. Just like you or anybody out there can't run a big credit card debt and think that's not gonna be ramifications to that. And anytime you have a negative real interest rate environment, you're gonna see the precious medals ride and perform very very well during those periods of time. And that's, you know, certainly what we have today. And I don't see that

changing that for the foreseeable future. And you know, the Fed's reiterated that too, So it's not like I'm coming up. Oh, they've they've they've they've given us a lot of words like infinity. Yeah, they're not even thinking about thinking about changing Uh now they've projected out you know, five years, so yeah, definitely, they've they've told us that. And it's

interesting what you said. The three trillion dollars and two thousand and eight drove it from you know whatever, six eight to two thousand, just that same move, what could push us up a four or five thousand, But as you've just said, they've actually done three times that amount, So yeah, that could be conservative, we don't know. But but there's other drivers as well. So I think we're

almost seeing this kind of perfect storm. Um, I know a lot of people think it maybe just depends on a strong or a week dollar, which has kind of been been that historically. But I think you've probably seen it move up against either or strong or a week would you say that's correct? Yeah, yeah, you will see that. And I think what's also overlooked is gonna supply side

of things. I mean everyone thinks that you look at a price and the price is just set by you know, stronger demand, but you know, stronger demand met with stronger supply coming online will net out, you know, really a flat move in any kind of commodity. So you're seeing this new demand come on both on investment demand in different types of consumption, certainly on the gold side, but then on the supply side. These discoveries are becoming very,

very difficult to make. You look at how many multimillionaiuts gold discoveries are made, and it's becoming more and more rare. So a lot of that is going to be supply side driven as well. When you have increasing demand but you don't have supply that can meet you meet up and keep over with that demand, that's when you have big moves and price action and not online medals seeing happening in gold. You saw that happen in silver, and more recently, I think, you know, again, silver can continue

to have a big run with it. I mean the move that silver had this year, you haven't seen a moving silver like that since the nineteen eighties. Um So, again, it's a supply side story in a lot of ways as well, because while you had that big movement and it's been a tough period, you've also had lack of investment into exploration across the board base meals in particular, because you know, seventy of all exploration dollars raised, believe

it or not, go to gold. Um So again, Uh, you know, I do see a bright future and it's gonna be both supply and demand oriented. Yeah. Well, I love that you say that because, um I always, you know, try to break things down very simply, and you know, there's a lot of complex ways to look at the markets, but at the end of the day, really it all boils down to supply and demand, and so, um you

have increasing demand for a bunch of different reasons. But then the simple sides, you can see the supply side going down as you're seeing, and so that leads to that that price increasing. Um. You know you talked about you know, the FED printing all this money, and when they print the money, fake money values are dropping and it seems like that's gonna naturally push people into real things like possibly commodities, which is the space you're in. I mean, do you see that that migration of people

wanted to leave fake money into like real assets like commodities. Yes, for sure, you know it's you're seeing a new wave of an investor coming into the commodity space. And you can always tell that's the telltale sign. Um. You know. I like to think of money and when in terms of that flows as the water, you know, you can

like that as the waves and a knowedge. But when you have asset flows into a sector, a small sector like the mining businesses, you know, all ships are gonna rise in the rising tide, and you've certainly seen that. But I think again you don't have anywhere near which you saw into doesn't six yet and the market really has it's truly caught on another big thing you know that's been changed in the market, which I think is very very healthy. Do this pandemic and when have you?

Is the advent of the day trader or the personal investor, and that was something I thought. It was a loss so which I really I give a lot of credit to you know, outfits like yourselves that educate investors out there about the markets and what have you. But it was the one big concern I saw overall in the markets in general is you know, investors stopped taking responsibility

for their own futures. You go to a financial advisor, broker, get stuck into a mutual fund that's supposed to be you know, slated for you, and then you kind of walked away. And that whole uh commanditization, I would say, of the financial industry that actually heard it, because it took away people's connect them to their own money and this adamant of robin Hood and the monials coming in and you know, sports being shut down and people moving

to the markets. I think while it's building some you know, unique price action some of these stocks, of these momentum that's drawn into them, it's gonna be longer term, very very healthy for the capital markets. And something that I like to see. Uh you know, one of the unfortunate things I think being you know anno cap stock or microcap stock today is that those investors don't aren't able to readily access us a certain trading platforms. And you know,

we'll get to fix that in the future. Um, you know, as we get them hire more market cap, will be able to uplist and what have you. And uh, you know see where it carries out from there. Yeah, that that has been amazing phenomenon of of the rise of the robin Hood trader, as you say, and and a very welcome one. I mean, I'm trying to encourage people to take control of their financial future and so uh,

we're definitely seeing that happen, which is cool. Um. Now, as far as the mining goes, I know you're you know, you operate across multiple front commodities gold, coppers, beeing, silver, etcetera. Um, but talk to me about how the mining um is set up. So we have this move where people are going to be demanding you know, more commodities, whether that's gold or silver or copper. Um, we have a supply side that's down and so we're expecting these big moves up.

But how does that work for a mining company? So it's easy I see, you know, gold jumps up a hundred bucks or silver jumps up you know, three or four bucks, But how how do you look at moves in the physical and then kind of compare that to a mining company and the share price. Yeah, so it really depends on stage of the mining company. So there's

three different stages in the mining business. You have the explorers that Calnex fits in, and that's kind of really gonna be heavily based upon making discoveries which will create a lot of value for your shoulders, and that's where you can make the biggest wins in the businesses through exploration. But also it's very hard to make a discovery, so

that carries obviously the biggest risks. And in the kind of the our, you make a discovery and you start going through the engineering phase that's called the development page for the developers, and then the final group is gonna be the producers. So when you ever, ever you see a you know, price action movement in a short period of time like you mentioned, that's gonna obviously immediately impact the producers because those are the companies that are immediately

generating revenues. And so again you have rising metal prices, you have increasing revenues, and then your margins should expand because your profit margins. All that's being equally going to say the same you fixed costs. So those are the

three different sectors. Now, once you have a move in underlying moving the metal, and then the market realize that that's that's gonna be a stabilized price going forward, and there's confidence that this isn't like a you know, a fluke move up and then you know, shorter term move up and then gonna come back down type of situation. That's when you're gonna see the developers and then even more so the explorers follows suit and actually outperform the producers.

So again that's kind of how the sector is broken up in terms of those three different subsectors and how the underlying commodity prices can have an impact on them depending on where you are in the cycle. Okay, and so you have like the producers are the ones that are actually producing the gold hence the name producers putting

that gold to market. Um, but they they constantly need to be refilled, so they're kind of like draining their reserves of gold, and so they're leaning on the developers and the explorers to then keep bringing them uh fresh gold. So it looks like the market is really um kind of set up for like M and A, you know, mergers and absolutely all the way up. So that is that kind of the typical play. That's absolutely so you know, calin x per Se has a potential um to go

into production. But more realistically, what you'd see as a producer mid tier major come out and I want to acquire that asset say then again to kind of go into their pipeline and production. Typically when you make a discovery from you know, discovery hole to producing seven years for copper and it's really no different for a lot of these other minds, and you can compress that timeline.

You know, there's obviously permanent environmental studies that need to be done and what have you, but that's typically how it goes. And so the only way these these mid tiers really kind of replenish their future cash flows is buying these development stage assets and taking into production because

again there's a lot of expertise and skill sets. I mean, it's one thing to find a mind, then there's amount of engineering and then actually going in and producing uh is you know, it's a lot of work and it's broken down in those subsectors and it's not you know, in terms of explorations, it's like a biotech stock. You know, you come up with your exploration thesis, which be simply like someone's trying to come up with those cure for

cancer or concoction or what have you. And then you go and you test that hypothesis and we test our HYPOTHESI students our business by doing geophysical tests that will you know, further build up what that hypothesis is, and build our exploration model on different data sets. And then ultimately we've drill test it, which is the most sense

of part of the business is drilling. Uh. And then once we drill it, that's really the truth machine they call it in the business, to see what you hid, is your hypothesis correct or incorrect, or what you need to do to continue vectoring to make that discovery no difference than a biotech cycle will have when a drug goes through celinical trials to see what are those results for those trials. Our trials happened to be the droll. But you can't create wealth in any other business as

quickly as you can through a discovery. And then you know, that's really what we're focused on set out to do, uh, you know with caln X. Yeah. So as an investor looking to invest into the market, I mean, I I love the mining sector. That's why I've been talking about a lot lately. I mean, I see this massive need for gold, this demand as you say, and you know,

the miners give us that asymmetric return. But as so as an investor looking into the space, um with that sustained gold price being up, like you said, the miners have um leverage to that, right, So they have so much gold or silver copper in the ground, so when the ice moves up, they have multiples on that UM. And I think that's why we get those big moves. I know in our portfolio we've we have several that

have gone up a d percent. I think I talked about calin X on a video back in July, and it's up about I think sixty five percent just since I mentioned it in that video back in July. It was much higher. It's a little bit down um. And is that because of the reserves that you have in the ground is why it's really moved up? Or was it more? Uh? What was the driver for that? So

it's twofold. Obviously we we had we have existing resources in the ground in the portfolio and you know, coming out of the negative sentiment, and that's really when I picked market bottoms on anything, whether it be an individual commodity or their overall capital markets. It's really when this peak fear, and there was certainly peaked fear in March, and so coming out of that and cerainly's gonna help us.

But with that, we're also coming out of this you know, downturn so to speak, with key discoveries across our portfolio. And so we did hit two silver discoveries that are near surface with potential be a minimal to an open pit operation which has one third mining costs of an underground um again very widely space in New Brunswick near an International Creek property which also hosts a zinc lead deposit.

And then in tantem to that we were vectoring in UH to a big target in Flint Fond, which is a community that's been in production for almost a hundred years and thirty two minds in County. That's an area that is due to have their flagship MIND shutdown in Q two two UH and we just made a significant discovery there UH and that discovery is going to be copper, gold, silver, and zinc rich which is in high grade, which is what Flint fond is known for a very very critical

time for that community. And so right now again we're going to continue drilling there. We're gonna be following up also to the silver discoveries. But that was what drove that move. And as as just like I was mentioned in terms of a biotech stock, as we go forward and continue to drill and step out from that extra discovery hole and show the size of the deposit, then people can start really seeing, hey, the potential of what

the discovery is. The rainbow discovery Manitoba, uh, and then the two silver discoveries in New Brunswick you know have and you know, and that's when you get a huge move in terms of equity valuation. And an explorer like ourselves, particularly callin X, has such a type capital structure with just eleven million shares out and some very very strong supporters,

you know, within that scheerbase. So if I'm gonna summarize that, and then basically, you know, being being the the explorer is kind of the riskiest part because you don't know if you're gonna discover, but you're the greatest upside. So, just like most things of risk and reward, as you get further along, the price goes up. So you made a couple of big discoveries which brought the share price up, which now you're less risky, but if people jump in,

now there's less upside. So as you get further along, back to your biotech example, as you get further along clinical trial, as you're closer closer, closer, the price moves up, up, up, and people can jump in. There's less risk, but there's less reward. Kind of a thing, right, and so it actually it's very unique right now with caln X coln X. When we were you know, as you mentioned, we traded to four dollars to share, but that's actually before we

hit the discovery hole in Flint, Flont. We were just merely announcing we started that discovery hole in Flinn fund And in fact, now with you know calns trading roughly two dollars and fifty cents two thousand and sixty cents Canadian, you're able to buy the stock, if you're able to buy into these prices today at a cheaper price than before we actually physically hit on the discovery which is

why you saw myself and in our team. You know, we we obviously can only purchase after we have a news go public um and you know we have significant blackouts during drilling. But you know, I was a purchaser of the stock and end of my own position about three dollars because I really did see us having a big move off of that base. And and you know, in my own own way, it's it also worked out better for me. I had to buy some stock a

bit cheaper. But now is a very unique situation where you can buy a stock and actually a much higher

evaluation before you confirmed and actually derisked it significantly. And now between now and our step out from that discovery hole, as I think, a tremendous opportunity to look at the stock uh and again because you know, when once you go out to confirm the discovery, which is something that we didn't you know, we've we've had a big hole in Flint Fund before in the company, in before we had any of the assets in Eastern Canada, we we had a discovery UH and you know the company went

to nearly sixty million dollar valuation on that one discovery hole. So this time we've hit the discovery hole. We had the target going into that, which we didn't have in ten, with a much tighter capital structure because we restructure the company last year leading into this, you know, new wave coming and um, the market hasn't really believed that we're gonna it's been confirmed yet because we've hit a hole there before but haven't be able to confirm it. But

this is a much different scenario. And I'm really really excited about the drilling campaign and that's underway there and that could be a big, big catalyst for us in the next month as we step out to confirm that discovery and in in Manitoba. Yeah, I love what you said there about how how you're buying your You hold a lot of the stock and you even were buying

more more stock at that price. You know. One thing that I talked about is as investors and we're looking at the market, UM, I always like to look at the team because you know that takes a lot of the workout right, And one of the things that I look for in the team is like do they have skin in the game? You know, are they are they investing? Are they buying into their own company? Um? Can you tell us roughly you know what the kind of insider

participation is with the company. Yeah, again, I own just under five percent of the company myself. My family collectively has been a big supporter in my career and their own roughly twelve percent across the board with you know, my family to extended families. So we're really happy to have that support. In terms of reformer chairman Mike Maslawski, remember the Canadian Mining Hall of Fame, Ban's just under

five percent of the shares outstanding as well. Uh And so you know, forms of management, we do have a big stake in the company, and you know our board

also has has positions. Our technical team have all been buyers in the stock more recently, but they're not filers per se, so that's not a but again, we all believe in what we're doing, and you know, I plan on creating a lot of wealth for myself and obviously my family that's been supporting me and my endeavors personally, and more importantly, we want to create long term job

creation within these communities. That need is discovery and I think that truly in life is a rescue for success, much like yourself, Mark, I mean your professions to educate people to make people happy and you know, help their with their financial decisions. And the more people that you mark, you help them more successful. Marks point to be financially as well as probably how he feels about himself. And one of the things that drives myself is saving fun.

Fun was one saving you know, the very high unemployment where you see in the bathrooms district and new runs like well Over pre pandemic. And you know, when I achieve those goals and our team achieves those goals of helping people, you know, our shoulders are gonna be rewarded and the we're big shareholders of that. Yeah, I h I love the fact that you have five percent, But I'm even more impressed that you got your family in

a twelve percent. Because if you're gonna bring your Jewish guilt, who knows if you bring your friends and family and you better be doing good. I let deliver. I'll tell you that. You know, there's no question because the first people are gonna call you when something goes wrong, as your friends and family. It's easy to let yourself down, right, but man, and we let your friends and family down, That's that's a tough one. No, Well, I'm not. First

of all, I won't let myself down. I mean, I you know, when the kind of the company got the baby got thrown out with the bathwater. You know, I when the zink price came down and we were known for calling the bottom of the zinc cycle in in ten making those acquisitions because there's a zinc component to

those those acquisitions in Eastern Canada. Um. But when when I saw the company go down to three and Apple into our evaluation, I really said to myself, Hey, what am I doing with my own career and what why am I doing this? And again I stated why I'm doing this. We're doing this to make discoveries to help

these communities. And uh and I said, you know, if I'm gonna do this, I'm gonna put my money where my mouth is and and put pretty much everything I had, you know, my age that I could into caln X and look forward to being rewarded with our shoulder basis we have success. But before now you talk about callin X, you know, copper, gold, zinc, silver. I mean, when I talked about it back in July, I think I was just talking about the silver, which I guess is those

deposits that you made. Um, are you just like a general miner or are you really specializing in one. If I was looking at the company, what I considered a silver miner, a copper miner, a gold miner, or I just look at all of that, Well, yeah, that's what you know. A lot often times in the industry, everybody wants to pure play. They want to get exposure for this and then and quite frankly, I mean if you were to buy Apple, I don't think you're buying Apple

just because they have iPhone. Uh. And a lot of people look at one key driver to drive something in their investment thesis. And that's fine if you're only looking for a leveraged play. But the reality is is where a v MS explorer. V MS stands for volcano genic massive sulfide deposits, and these deposits why I like them is because bloom or Bus, when a v MS mind goes into production, more likely than that it's going to stay in production. And that was a tribute to Flint Funds.

You know, a hundred year almost track record, um. And that's because of the polymetallic nature of the deposits. So oftentimes when you're marketed a zinc story or a silver story. You know, it's particularly in silver. If you ever market a silver story, you should really go look at the by products from either zinc, lead or copper because a majority of the world silver production really truly comes from

their copper dominant discovery or deposit or a zinc lead deposit. Uh. So again we're we look after these VMS deposits because they're high grade. They're polymetallic with a spread between base and precious metals. Uh. And again some of them be higher grades in various minerals and as supposed to others. For example, if you look at Nash Creek deposit itself,

that's a zinc lead mindali minilization. But adjacent to that, over that very long strike extent, we hit the silver discoveries and a majority of that has discovered a silver which is tremendously rare to find, you know, silver dominant near surface and open pittable grades. And then moving over to Flinn Flon. Flynn Flon is known for the high grade copper gold uh the flint media Flint Flon area

at the Triple Seven mine. But then you also have the zinc silver lead as byproducts so to speak for that. Um So, again, our discovery in the Manitoba as it stands today is is very copper rich, but also as significant precious metals components as well as that the zinc there. So you know, I don't like to say that we're

one one metal company. I think you know, we're an exploration company that has a purpose and let's to discover a big economic deposits in proximity infrastructure, particularly where there's an immediate need for discoveries, because that really accelerates your ability to fast tracks your discovery. Yeah. Now I talk a lot about gold and silver on this channel, mostly because you know, the money falling apart in the need

for like kind of back that real town money. But like we already already talked about, that's also going to push people back. Just two real assets commodities. UM I don't really talk a lot about copper. And since I have you on, maybe you can tell us maybe what you see as far as the cycle and copper. What are the drivers, like what are we expecting with copper?

You know, I think copper and zinc are both in the you know, tight supply side markets and that's due to a really tough decade in terms of base metal exploration. When I took over klin X, it was actually a focus on graphite exploration in northern Manitoba. And so what are we doing here, Yeah, we gotta go look for these these base metals b MS deposits in flint Fall and beyond um and and again. Copper overall as a as a commodity though is is one of the most

consumed metals in the world. It's often refer to his doctor Copper because when you can really look at copper as a bell weather to the global economy, if you want to see how the global economy is, you go look at copper because coppers are pretty much and every thing that you're using daily life between the electricity that's turning your lights on. So when you get in your car to drive to work. You know, everything in terms of the world is base metals is the building blocks

of the global economy in a lot of ways. So in terms of copper, right now, you've got in a tight supply, but you've got steady demand growth, particularly out of China. Uh and you know, as you see the world continue to come out of this, you know, want to call it a recession that we're already probably in pre pandemic. But as we come out of that with all the stimulus going on, I do see the base medals performing very very well in tandem with the precious

metal space. And I do think the government policy is going to be a key driver of that. And I don't mean for the money printing standpoint. Well, they're really really good at printing money. I hope that they're really really good at spending that money in a much better way than they have in the past. And I think that the way that needs to be done is to infrastructure spending. If you look at infrastructure spending is a key driver for job creation. Right you look at there's

a great depression. How did the FDR get us of the Great Depression? I don't know, speaking in from an American standpoint, now, is infrastructure spending? You know, the interstate build out in the nineteen fifties, the build out of the national parks, all this type of stuff, you know, creates jobs. And it seem it's called the cous net

cycle where we see job creation for twenty years. And if you look in terms of what China has done, um, China has used infrastructure spending to really facilitate the growth for the economy in terms of really the urbanization of their economy and their population, and then connecting their urban centers to the rural centers through their rail lines. They're Telegoni communication networks there, their highways, their ports, they're in airports.

All that is tremendous base and precious medals and UH consumption. And if you look in terms of their one wealth'm sorry, one Belt, one road plan, you're talking an infrasture actual plan that's never been seen before in terms of its scale, connecting China and rebuilding their old silk Road so to speak,

as they moved to the west. And in the United States, I know it's being a talking point, but I travel prior pandemic, I traveled the world quite frequently, and then one of the things I can assure you of as the infrastructure the United States needs to be updated as well, particularly in Eastern Canada, I think there's a total lack of infrastructure investments, you know, like in the profits of Quebec in particular, in that infrastructure spending is going to

create jobs, that's gonna be I think something that bipartisan groups can agree upon uh and and again it's gonna see be something that everybody can look at and go, you know what, I see my tax sellars go to work and I can appreciate where it's going, as opposed to many of us that look at what's going on and think that the dollars are being flushed on the toilet right after their printed. And again, that's gonna be big,

big for the base metal space. Yeah, yeah, I agree, And I've talked about that quite a bit that I believe that there is big infrastructure spending coming um in in my portfolio. I've actually been positioned for some of that, and we're starting to see some really good moves there. UM And I think regardless speaking in the US, I mean you did talk about the world in Canada and China,

et cetera. But specifically in the US, regardless of who wins, we're gonna have that, and specifically if the UM if the Democrat Party wins, I mean they're trying to push this Green New Deal or the Biden Deal or whatever, and they're talking, you know, thirty to ninety trillion dollars

of spending you have the that'd be real problem. I mean, it's gonna be a real problem as far as uh as far as what that's gonna do to the economy, but as far as the demand for base metals, right, So I know, I know, I mean, I'm just looking at the it's a very very big problem. I would be very very great for my life. But I'd say, you know, that amount of jeck going out there is is something that you know I would never want to see for my future generations. But that's exactly why you

are where you are. And I'm even talking about putting this on a video because this is coming whether you like it or not, and everybody's going to be in jet the over this. And if you don't as an individual person, as you said the Robin had Trader taking responsibly for the future, if you don't make these moves, you're gonna be in the side that gets left behind and gets damaged by this. But if you position yourself right, so the economy gets wrecked but copper goes up, maybe

I should be in copper and I can offset that loss. Yeah, I know. I honestly, I've told some of my friends you know, I always plan on doing well for myself and and just really matter what I put my mind to you, I've always had that, and then I'm dying belief and wavering belief that we're gonna make these discoveries as well, um, putting a lot of ways COVID is gonna, you know, create the well threefold what I could have ever dreamt of because of the you know again what

this is all set into place. You know, making a discovery is one thing, and then making multiple discoveries is a completely other thing, which I'm super excited about. To make these discoveries with the fore side of restructuring the company, tightening, the tightening that capital's structure up last year and really to put us in a position to catch that wave um with these discoveries, and then layering on what's going on in terms of globally monetary policy and fiscal policy.

You know, that's what's gonna, you know, make the wave really swell in this scry um. It's the tsunami of money. Yeah, you know, to protect yourself, you're absolutely right, by your real assets is the way to go. And I'm obviously a heavily lever to that. Yeah, yeah, definitely, And so that's what I continue to pound the table on. And uh, you know, it is unfortunate that the majority of people are not going to do well in this money transfer, but the few people that get it right are going

to do extremely well. I think you said three times extremely well. So um, that's why I continue to encourage people to do that. One other thing that I want to talk about because you have a background in it. I know you're not currently engaged in it, but talking about you know, potentially as Green New Deal or the Biden Deal whatever. And there's this massive push to renewable energy and so you know a lot of solar and wind and stuff like that, which probably also helped base

medals UM. But there's talk and I did a video on this recently where really, you know, maybe wind solar isn't the best option, maybe we should take a look at um at nuclear and so a lot of people are thinking that uranium could be a good mining play, and I talked about mine in the lots. I could ask this question a lot, and I know you have a background in uranium. So what do you see happening

in the world in regards to that? Uh, Well, in terms of uranium, I think uranium is gonna do okay, just given the back that again, my the thesis we've been talking about for the next greeps half hour really all ships rising, rising tide, and so I think uranium will do okay to that end. Um. But you know, I came to Canada on the pretense of uranium. I'm

a big admirer of the country of Japan. I've been to Japan probably once a year over the past five years, and I'm really quite frankly, if I could go anywhere right now, would probably be back to Japan. But the first time I actually went there, and the reason why I went there was I really wanted to get a pulse in terms of one of the Japanese perspectives on

nuclear reactors, you know. And the one thing about Japanese, if anybody's been there, is that Japanese overall have a great sense of pride um and that's one thing you can never take away from Japan there. The amount of pride that country has is something that's very, very unique that you don't see anywhere else. I in a lot of places, I should say, and you know, just mentioning Fukushima nuclear reaction to anybody that came across um that you could see was a big, big, ego hit right.

It was something that they didn't like to speak about because of you know, obviously what it did to the country, UM, not just from the act accident perspective, but the global perspective of of howevere looks at Japan UM. And they had a tremendous amount of reactors come on offline because of that. And that's when immediately knew that the kind of mindset that the reactors were gonna come back online,

I kind of strong order was was unlikely. UM. And so that's when I kind of personally turned a more negative outlook on on uranium. But on the again the supply side, I we always talk about demand and everybody wants to talk about, you know, the solution that uranium should have and should have on the baseload power. And I am a proponent for your for nuclear power. By the way, I do think the disaster that occurred in Fukushima was extremely unique and it went back down to

a design flaw. Basically, your backup generators were located below sea level. Probably don't need that to happen, and it was all old technology and yeah, it's just a design flaw really and and that needs to be addressed, but you can't get baseload of power as cheap as you can everywhere else. But with that being said, what also is very unique about the power is the cost of fuel is very very inexpensive relative you're operating costs for the fuel relative to all other costs being equal for

nuclear power. So I do think the nuclear plowers should have a place, but it's fighting overall public perceptions. Obviously, more of a trouble with nuclear power UM going forward in the fact that there's a lot of low cost production for uranium globally, particularly at the Kazakhstan where you're producing uranium eight a pound and the Russians. Basically, if you buy a new reactor from UM, it's cause ATA prompt uh. You know, they'll guarantee you fuel for your

reactor for a decade, you know. And really it's like, hey, we're gonna give a spare tire if you buy our car, you know. So you know again, and if you look in terms of the discoveries out of the Athabasque region of Canada, there's some monster high grade discoveries, uh. And as US go online, you know you're gonna have enough

uranium to feed in this whole notion about domestically source uranium. Yeah, I think, you know, Americans can be rest assured that you can look north to Canada to get that feed in the future, while the Chinese have bought a lot of that. Um you know there there's more discoveries been made up there and that's just take on uranium. Yeah. So um it sounds like uh if I've summarize your view and and it seems like it does kind of line up with what I've been seeing, is that the

demand side is still on its way down. I know in California we've shut down two of three reactors, the third one schedule to be shut down. As you said, Japan's pulling them down. Germany has been pulling them down, so we're kind of seeing them going down and probably haven't hit the bottom and definitely not going back up yet. So on the demand side is going down, and then you're talking about the supply side. We have an overabundance of supply and it's pretty cheap, so there's a ton

of uranium out there. So that was another thing. So in terms of the the demand, I'd say demand is probably flat because you do have a lot of reactors being coming online in China. Uh, that's been a big thing is the reactors that they've built. The quality of those reactors that was that I can't speak to, but those are supposed to be coming on a lot. You're gonna be like kind of a situation where you you'd

have a flat demand type situation. And then for a long time, there's been the down blending of the highly enriched uranium that seems to be never really ending. It was a twenty year deal that was supposed to end

a couple of years ago. We're basically as part of the Non Proliferation Treaty or one of the treaties that you'd see the Russians down blend they're highly enriched uranium that was used for their warheads and there were thousands of them during the Cold War into a lowly lower enrichment of uranium that can go as a fuel source for reactors, and then that was sold to the United States. The down blended uranium for a number of decades. It is supposed to end, it didn't need just got rechanged

and reject around. Uh. And you know, the last lobbying effort was trying to u get all this uranium source at the United States, which is quick really just not going to happen. So yeah, yeah, I would agree in general, but there is some demand growth out of China, but it's not going to be a you know, big move or demand growth like you see in electric cars for example.

But there's a big missnomer in my opinion when people look at electric car and say, hey, look how clean it is, because they don't understand the whole business cycle in terms of how do you get to get in the car, and there's you know, a lot of energy intensity that goes into these, um, these green deals and these green technologies because it just doesn't happen by magic, you know, out of the thin air, right, and a lot of it um And I recently just did a

video on this, I think last week UM talking about you know, the booming in electric vehicles and really what that means for every car needs a battery, and every battery needs minerals to go into it, right, right, A lot of copper, A lot of copper. So again right, so with uranium we see uh, too much supply and not enough demand. But with copper and gold we see too much demand and not enough supply, which is what

we want to see as investors. So um yeah, with that, we'll we'll wrap it up and and I appreciate you doing that, taking the time to explain that klin X minds again copper, gold, zinc and silver um now again. I talked about it back in July. I think I think it's up six since then, but I'll go ahead and link to it down below in the description as well. Is there anywhere else people should go to follow up with you or or follow you or follow the company? Yeah,

are on our website. The easiest is calin x dot c a uh and there you can get our corporate presentation or contact information. I'd always like to interact with different shielders and investors out there. I'm not too busy on the Twitter or anything like that. I'm really solely focused on making these discoveries. And and that's about it. Good, all right, Well, without we're gonna gohea and sign it out. Thanks so much for joining us today, Max, Thank you

very much for having me. I've had a great time