WEBVTT - Timing Commodity Cycles - The Next BIG Opportunity | Max Porterfield 0:00:13.640 --> 0:00:17.239 Hey, everyone, welcome to another episode of the Market Disruptors Show. Today, 0:00:17.320 --> 0:00:20.360 I am joined by Max Porterfield. He is the president, CEO, 0:00:20.680 --> 0:00:24.319 and the director of calin X Minds. Um. He is 0:00:24.560 --> 0:00:27.200 maybe what a lot of people would call a disruptor 0:00:27.240 --> 0:00:29.520 in the mining space, which is awesome because of course 0:00:29.520 --> 0:00:33.080 we're talking about disrupting markets on this show. Um. So, Max, 0:00:33.120 --> 0:00:34.640 I've been I've been really excited to talk to you. 0:00:34.680 --> 0:00:37.159 Thanks for joining us today. Yeah, thanks so much for 0:00:37.159 --> 0:00:39.319 having me. I'm really excited to be here. Yeah. So, 0:00:39.440 --> 0:00:42.040 you know, I've been following what your company has been 0:00:42.040 --> 0:00:43.720 doing for quite a while. We've talked about it in 0:00:43.760 --> 0:00:45.479 the past on this show. I'll get to that a 0:00:45.479 --> 0:00:47.199 little bit later. So I'm kind of familiar with you, 0:00:47.240 --> 0:00:49.479 but for those who really aren't familiar with you, just 0:00:49.479 --> 0:00:51.519 give us a little bit on your background and what 0:00:51.520 --> 0:00:55.960 you're doing. Yeah. So I'm originally from Texas. I got 0:00:56.000 --> 0:00:59.600 my undergraduate Texas Tech University, Border Raged, Texas out of 0:00:59.640 --> 0:01:03.640 West Exist originally and um again, starting my career in 0:01:03.640 --> 0:01:07.160 the natural resource space with a comic a US Global Investors. 0:01:07.160 --> 0:01:09.800 Spent nearly six years there and that's a fuch boutique 0:01:09.800 --> 0:01:13.080 investment firm. That specializes as in natural resources investing the 0:01:13.200 --> 0:01:16.679 run a mutual fund portfolio there really known across the 0:01:16.720 --> 0:01:18.800 world for their their expertise with that, and so that 0:01:18.840 --> 0:01:22.320 was a tremendous amount of education really on what does 0:01:22.360 --> 0:01:24.760 an institutional investor look at when looking at to make 0:01:24.800 --> 0:01:27.480 investments into the mining space in particular, which is what 0:01:27.760 --> 0:01:31.000 my next move was. So then I moved to Canada. 0:01:31.040 --> 0:01:35.880 In I did some investor relations there's some two notable 0:01:35.880 --> 0:01:38.959 companies for a couple of years to really understand the 0:01:39.000 --> 0:01:41.759 capital markets, and then went all in, so to speak, 0:01:41.800 --> 0:01:46.680 and taking over klin X and refocusing the company to 0:01:47.000 --> 0:01:51.840 these exploration within these prolific mining camps in Canada to 0:01:51.960 --> 0:01:55.480 make the next discoveries to really continue those long lived 0:01:55.800 --> 0:02:00.400 histories within those communities. Yeah, so that's cool. Worked with 0:02:01.160 --> 0:02:03.680 at US Global Investors. I had Frank Holmes on the 0:02:03.680 --> 0:02:07.920 show UM a few months back. He was he was great. 0:02:07.960 --> 0:02:09.880 I I learned a lot from him until he was awesome. 0:02:09.919 --> 0:02:11.600 So that's cool. That's a good person to mentor under, 0:02:11.600 --> 0:02:15.400 I would imagine. Yeah, so you went to uh you 0:02:15.440 --> 0:02:17.960 went to Canada in two thousand and twelve UM and 0:02:18.000 --> 0:02:21.000 started working in the capital markets. UM. I guess specifically 0:02:21.000 --> 0:02:24.640 trying to like maybe raise money for mining companies, but 0:02:24.680 --> 0:02:26.680 that probably wasn't the best time, right, That was kind 0:02:26.680 --> 0:02:28.200 of like at the peak before we went into a 0:02:28.200 --> 0:02:31.400 long bear market. Yeah, I know, I'm my whole career, 0:02:31.520 --> 0:02:33.359 I in a lot of ways has been in a 0:02:33.440 --> 0:02:35.720 bear market. I mean I came out of a university 0:02:35.720 --> 0:02:38.600 in two thousands and six, joined US Global and it 0:02:38.639 --> 0:02:41.320 was a nice you know right up watching the assets 0:02:41.360 --> 0:02:44.679 grow and really the last secular bull market for commodities. 0:02:45.639 --> 0:02:48.519 But then that will popp ur the financial crisis and 0:02:48.520 --> 0:02:51.959 and really it's been a tough time through throughout that past, 0:02:52.040 --> 0:02:54.919 you know, over a decade at this point. But I 0:02:55.000 --> 0:02:57.480 think we are re entering a new secular bull market 0:02:57.560 --> 0:03:00.720 for the commodities space. And really always said to myself 0:03:00.720 --> 0:03:02.799 that you want to ride the wave when the wave comes, 0:03:03.840 --> 0:03:05.760 and yeah, certainly that's what we're doing. You're with calin 0:03:05.919 --> 0:03:08.680 x and hitting these discoveries when the winds really behind 0:03:08.680 --> 0:03:11.360 our sales in a lot of ways. So you know, 0:03:11.800 --> 0:03:14.480 these cycles they come, and when they come, they come 0:03:14.520 --> 0:03:16.720 really big. And we're in the middle a very big 0:03:16.760 --> 0:03:19.080 cycle coming force in the basic process metal space. In 0:03:19.080 --> 0:03:21.560 my opinion, Yeah, I love. I love what you said. 0:03:21.639 --> 0:03:24.160 So I'm in I'm in California. I'm a surfer. So 0:03:24.200 --> 0:03:26.440 I always talk about like investing like a surfer. Right, 0:03:26.480 --> 0:03:28.560 I can see a storm brewing from far away, I 0:03:28.560 --> 0:03:30.639 contract that the storm's coming, and then I wait and 0:03:30.680 --> 0:03:32.880 I just ride that wave. Um. And so that's kind 0:03:32.880 --> 0:03:35.240 of what you're talking about. So it's kind of always 0:03:35.280 --> 0:03:36.720 work with my analogy. But the other thing I like 0:03:36.760 --> 0:03:39.880 about what you said is, you know you've kind of 0:03:40.000 --> 0:03:43.160 been through these bear markets and so um. I love 0:03:43.160 --> 0:03:46.360 the quote that a smooth seas never made a skilled sailor. Right, 0:03:46.360 --> 0:03:48.080 you have to go through these tough times and you've 0:03:48.120 --> 0:03:50.920 made it, so you're definitely prepared for that. But talking 0:03:50.920 --> 0:03:53.560 about this wave coming or you said the wind at 0:03:53.560 --> 0:03:56.600 our back, Um, what do you see being the catalyst 0:03:56.640 --> 0:03:58.680 with the gold price? I mean, obviously we were in 0:03:58.720 --> 0:04:03.160 this gold you know, bull market recently, but now we've 0:04:03.200 --> 0:04:05.320 seen this weakness in the price and some people maybe 0:04:05.320 --> 0:04:07.360 are starting to doubt that. But you think we have 0:04:07.400 --> 0:04:10.760 this bull market head, talk to me about that. Yeah, 0:04:10.880 --> 0:04:13.560 most certainly. I think we're in the early stages of 0:04:13.840 --> 0:04:16.280 a secular bull market for the real assets out there. 0:04:16.320 --> 0:04:19.440 And that's just do basically, you know, simply to the 0:04:19.720 --> 0:04:23.120 what's going on and the government spending. The amount of 0:04:23.160 --> 0:04:26.240 printing of dollars is unprecedented. The last time you've seen 0:04:26.360 --> 0:04:28.640 anything like this was during the financial crisis, and that 0:04:28.680 --> 0:04:31.520 was probably three trillion dollars of the FED and that 0:04:31.640 --> 0:04:35.480 took a gold move from six dollars announced north announce 0:04:35.520 --> 0:04:37.520 at that time, right, and that was you know what 0:04:37.560 --> 0:04:39.960 I got to experience the end of that in terms 0:04:39.960 --> 0:04:42.800 of the last rodeo for a very very short period 0:04:42.800 --> 0:04:45.520 of time. And you know, this is the situation now 0:04:45.600 --> 0:04:47.560 with the COVID. Whether you agree with the reaction or not, 0:04:48.279 --> 0:04:50.960 I'll leave that up to other people's debate a different conversation. 0:04:51.560 --> 0:04:54.000 But the amount of money printing is just next level. 0:04:54.040 --> 0:04:57.480 You're looking probably three times that in terms of money printing. 0:04:57.640 --> 0:05:00.440 In the magnitude that's going to have on real sets, 0:05:01.000 --> 0:05:03.760 it's gonna be tremendous. And you know, ideally placed you know, 0:05:03.839 --> 0:05:08.440 owning real estate, goal precious medals, based medals art I 0:05:08.480 --> 0:05:11.039 think is it's gonna have a big run to Yeah. 0:05:11.240 --> 0:05:14.120 Is again, you know, you just can't print that kind 0:05:14.120 --> 0:05:17.360 of currency and think nothing's gonna happen. Just like you 0:05:17.560 --> 0:05:19.479 or anybody out there can't run a big credit card 0:05:19.520 --> 0:05:22.320 debt and think that's not gonna be ramifications to that. 0:05:22.640 --> 0:05:25.080 And anytime you have a negative real interest rate environment, 0:05:25.120 --> 0:05:27.960 you're gonna see the precious medals ride and perform very 0:05:28.040 --> 0:05:31.159 very well during those periods of time. And that's, you know, 0:05:31.360 --> 0:05:33.800 certainly what we have today. And I don't see that 0:05:33.920 --> 0:05:36.159 changing that for the foreseeable future. And you know, the 0:05:36.200 --> 0:05:40.320 Fed's reiterated that too, So it's not like I'm coming up. Oh, 0:05:40.360 --> 0:05:42.479 they've they've they've they've given us a lot of words 0:05:42.480 --> 0:05:46.520 like infinity. Yeah, they're not even thinking about thinking about 0:05:47.040 --> 0:05:49.960 changing Uh now they've projected out you know, five years, 0:05:49.960 --> 0:05:52.200 so yeah, definitely, they've they've told us that. And it's 0:05:52.200 --> 0:05:54.800 interesting what you said. The three trillion dollars and two 0:05:54.800 --> 0:05:56.560 thousand and eight drove it from you know whatever, six 0:05:56.680 --> 0:05:59.479 eight to two thousand, just that same move, what could 0:05:59.520 --> 0:06:02.479 push us up a four or five thousand, But as 0:06:02.520 --> 0:06:05.599 you've just said, they've actually done three times that amount, 0:06:06.000 --> 0:06:10.039 So yeah, that could be conservative, we don't know. But 0:06:10.040 --> 0:06:12.520 but there's other drivers as well. So I think we're 0:06:12.520 --> 0:06:15.120 almost seeing this kind of perfect storm. Um, I know 0:06:15.160 --> 0:06:17.760 a lot of people think it maybe just depends on 0:06:17.800 --> 0:06:20.640 a strong or a week dollar, which has kind of 0:06:20.680 --> 0:06:24.200 been been that historically. But I think you've probably seen 0:06:24.200 --> 0:06:26.720 it move up against either or strong or a week 0:06:26.920 --> 0:06:31.120 would you say that's correct? Yeah, yeah, you will see that. 0:06:31.160 --> 0:06:34.320 And I think what's also overlooked is gonna supply side 0:06:34.360 --> 0:06:36.400 of things. I mean everyone thinks that you look at 0:06:36.400 --> 0:06:39.880 a price and the price is just set by you know, 0:06:40.520 --> 0:06:44.360 stronger demand, but you know, stronger demand met with stronger 0:06:44.400 --> 0:06:46.960 supply coming online will net out, you know, really a 0:06:46.960 --> 0:06:50.760 flat move in any kind of commodity. So you're seeing 0:06:50.760 --> 0:06:54.240 this new demand come on both on investment demand in 0:06:54.279 --> 0:06:57.440 different types of consumption, certainly on the gold side, but 0:06:57.480 --> 0:07:01.280 then on the supply side. These discoveries are becoming very, 0:07:01.360 --> 0:07:04.520 very difficult to make. You look at how many multimillionaiuts 0:07:04.560 --> 0:07:07.960 gold discoveries are made, and it's becoming more and more rare. 0:07:08.200 --> 0:07:10.880 So a lot of that is going to be supply 0:07:10.960 --> 0:07:13.320 side driven as well. When you have increasing demand but 0:07:13.400 --> 0:07:15.720 you don't have supply that can meet you meet up 0:07:15.760 --> 0:07:17.680 and keep over with that demand, that's when you have 0:07:17.760 --> 0:07:21.600 big moves and price action and not online medals seeing 0:07:21.640 --> 0:07:24.800 happening in gold. You saw that happen in silver, and 0:07:24.840 --> 0:07:27.320 more recently, I think, you know, again, silver can continue 0:07:27.360 --> 0:07:29.520 to have a big run with it. I mean the 0:07:29.520 --> 0:07:31.160 move that silver had this year, you haven't seen a 0:07:31.200 --> 0:07:36.160 moving silver like that since the nineteen eighties. Um So, again, 0:07:36.280 --> 0:07:38.280 it's a supply side story in a lot of ways 0:07:38.320 --> 0:07:40.760 as well, because while you had that big movement and 0:07:40.800 --> 0:07:43.320 it's been a tough period, you've also had lack of 0:07:43.400 --> 0:07:47.720 investment into exploration across the board base meals in particular, 0:07:48.160 --> 0:07:51.960 because you know, seventy of all exploration dollars raised, believe 0:07:52.000 --> 0:07:56.120 it or not, go to gold. Um So again, Uh, 0:07:56.200 --> 0:07:57.800 you know, I do see a bright future and it's 0:07:57.800 --> 0:08:01.200 gonna be both supply and demand oriented. Yeah. Well, I 0:08:01.280 --> 0:08:03.880 love that you say that because, um I always, you know, 0:08:04.280 --> 0:08:06.760 try to break things down very simply, and you know, 0:08:06.920 --> 0:08:09.040 there's a lot of complex ways to look at the markets, 0:08:09.040 --> 0:08:10.440 but at the end of the day, really it all 0:08:10.440 --> 0:08:13.600 boils down to supply and demand, and so, um you 0:08:13.720 --> 0:08:17.280 have increasing demand for a bunch of different reasons. But 0:08:17.320 --> 0:08:19.360 then the simple sides, you can see the supply side 0:08:19.400 --> 0:08:21.800 going down as you're seeing, and so that leads to 0:08:21.880 --> 0:08:25.360 that that price increasing. Um. You know you talked about 0:08:25.440 --> 0:08:29.000 you know, the FED printing all this money, and when 0:08:29.040 --> 0:08:32.440 they print the money, fake money values are dropping and 0:08:32.480 --> 0:08:35.360 it seems like that's gonna naturally push people into real 0:08:35.480 --> 0:08:38.360 things like possibly commodities, which is the space you're in. 0:08:38.400 --> 0:08:40.520 I mean, do you see that that migration of people 0:08:40.520 --> 0:08:44.680 wanted to leave fake money into like real assets like commodities. Yes, 0:08:44.760 --> 0:08:47.080 for sure, you know it's you're seeing a new wave 0:08:47.120 --> 0:08:50.160 of an investor coming into the commodity space. And you 0:08:50.160 --> 0:08:53.280 can always tell that's the telltale sign. Um. You know. 0:08:54.320 --> 0:08:56.360 I like to think of money and when in terms 0:08:56.400 --> 0:08:58.679 of that flows as the water, you know, you can 0:08:58.720 --> 0:09:00.880 like that as the waves and a knowedge. But when 0:09:00.880 --> 0:09:03.480 you have asset flows into a sector, a small sector 0:09:03.559 --> 0:09:06.400 like the mining businesses, you know, all ships are gonna 0:09:06.480 --> 0:09:08.480 rise in the rising tide, and you've certainly seen that. 0:09:09.080 --> 0:09:11.880 But I think again you don't have anywhere near which 0:09:11.880 --> 0:09:15.360 you saw into doesn't six yet and the market really 0:09:15.360 --> 0:09:17.720 has it's truly caught on another big thing you know 0:09:17.760 --> 0:09:19.679 that's been changed in the market, which I think is 0:09:19.800 --> 0:09:21.800 very very healthy. Do this pandemic and when have you? 0:09:21.880 --> 0:09:26.320 Is the advent of the day trader or the personal investor, 0:09:26.360 --> 0:09:28.120 and that was something I thought. It was a loss 0:09:28.120 --> 0:09:30.360 so which I really I give a lot of credit 0:09:30.400 --> 0:09:33.400 to you know, outfits like yourselves that educate investors out 0:09:33.440 --> 0:09:35.559 there about the markets and what have you. But it 0:09:35.720 --> 0:09:38.640 was the one big concern I saw overall in the 0:09:38.720 --> 0:09:43.440 markets in general is you know, investors stopped taking responsibility 0:09:43.480 --> 0:09:46.840 for their own futures. You go to a financial advisor, broker, 0:09:46.840 --> 0:09:48.800 get stuck into a mutual fund that's supposed to be 0:09:48.920 --> 0:09:50.320 you know, slated for you, and then you kind of 0:09:50.320 --> 0:09:55.240 walked away. And that whole uh commanditization, I would say, 0:09:55.240 --> 0:09:58.240 of the financial industry that actually heard it, because it 0:09:58.280 --> 0:10:01.440 took away people's connect them to their own money and 0:10:01.480 --> 0:10:04.200 this adamant of robin Hood and the monials coming in 0:10:04.280 --> 0:10:06.360 and you know, sports being shut down and people moving 0:10:06.400 --> 0:10:09.360 to the markets. I think while it's building some you know, 0:10:09.520 --> 0:10:12.000 unique price action some of these stocks, of these momentum 0:10:12.080 --> 0:10:14.760 that's drawn into them, it's gonna be longer term, very 0:10:14.840 --> 0:10:17.920 very healthy for the capital markets. And something that I 0:10:18.120 --> 0:10:20.599 like to see. Uh you know, one of the unfortunate 0:10:20.600 --> 0:10:22.839 things I think being you know anno cap stock or 0:10:23.080 --> 0:10:27.080 microcap stock today is that those investors don't aren't able 0:10:27.120 --> 0:10:30.440 to readily access us a certain trading platforms. And you know, 0:10:30.760 --> 0:10:33.600 we'll get to fix that in the future. Um, you know, 0:10:33.640 --> 0:10:36.040 as we get them hire more market cap, will be 0:10:36.040 --> 0:10:38.600 able to uplist and what have you. And uh, you 0:10:38.640 --> 0:10:41.240 know see where it carries out from there. Yeah, that 0:10:41.240 --> 0:10:44.320 that has been amazing phenomenon of of the rise of 0:10:44.320 --> 0:10:46.400 the robin Hood trader, as you say, and and a 0:10:46.520 --> 0:10:48.960 very welcome one. I mean, I'm trying to encourage people 0:10:49.000 --> 0:10:51.520 to take control of their financial future and so uh, 0:10:51.600 --> 0:10:54.640 we're definitely seeing that happen, which is cool. Um. Now, 0:10:54.800 --> 0:10:57.440 as far as the mining goes, I know you're you know, 0:10:57.880 --> 0:11:04.360 you operate across multiple front commodities gold, coppers, beeing, silver, etcetera. Um, 0:11:04.800 --> 0:11:08.160 but talk to me about how the mining um is 0:11:08.200 --> 0:11:10.440 set up. So we have this move where people are 0:11:10.440 --> 0:11:13.079 going to be demanding you know, more commodities, whether that's 0:11:13.120 --> 0:11:16.320 gold or silver or copper. Um, we have a supply 0:11:16.440 --> 0:11:19.000 side that's down and so we're expecting these big moves up. 0:11:19.240 --> 0:11:22.000 But how does that work for a mining company? So 0:11:22.040 --> 0:11:23.880 it's easy I see, you know, gold jumps up a 0:11:23.920 --> 0:11:26.439 hundred bucks or silver jumps up you know, three or 0:11:26.440 --> 0:11:29.120 four bucks, But how how do you look at moves 0:11:29.160 --> 0:11:32.000 in the physical and then kind of compare that to 0:11:32.320 --> 0:11:36.600 a mining company and the share price. Yeah, so it 0:11:36.640 --> 0:11:38.679 really depends on stage of the mining company. So there's 0:11:38.720 --> 0:11:41.400 three different stages in the mining business. You have the 0:11:41.440 --> 0:11:45.960 explorers that Calnex fits in, and that's kind of really 0:11:45.960 --> 0:11:48.720 gonna be heavily based upon making discoveries which will create 0:11:48.720 --> 0:11:50.240 a lot of value for your shoulders, and that's where 0:11:50.280 --> 0:11:53.079 you can make the biggest wins in the businesses through exploration. 0:11:53.160 --> 0:11:55.280 But also it's very hard to make a discovery, so 0:11:55.320 --> 0:11:58.880 that carries obviously the biggest risks. And in the kind 0:11:58.880 --> 0:12:01.120 of the our, you make a discovery and you start 0:12:01.160 --> 0:12:03.679 going through the engineering phase that's called the development page 0:12:03.679 --> 0:12:07.120 for the developers, and then the final group is gonna 0:12:07.120 --> 0:12:09.920 be the producers. So when you ever, ever you see 0:12:09.920 --> 0:12:12.120 a you know, price action movement in a short period 0:12:12.120 --> 0:12:16.679 of time like you mentioned, that's gonna obviously immediately impact 0:12:16.880 --> 0:12:19.120 the producers because those are the companies that are immediately 0:12:19.120 --> 0:12:23.400 generating revenues. And so again you have rising metal prices, 0:12:23.600 --> 0:12:27.520 you have increasing revenues, and then your margins should expand 0:12:27.520 --> 0:12:30.079 because your profit margins. All that's being equally going to 0:12:30.120 --> 0:12:33.280 say the same you fixed costs. So those are the 0:12:33.320 --> 0:12:35.559 three different sectors. Now, once you have a move in 0:12:36.040 --> 0:12:38.719 underlying moving the metal, and then the market realize that 0:12:38.720 --> 0:12:41.360 that's that's gonna be a stabilized price going forward, and 0:12:41.520 --> 0:12:44.000 there's confidence that this isn't like a you know, a 0:12:44.080 --> 0:12:46.360 fluke move up and then you know, shorter term move 0:12:46.440 --> 0:12:48.559 up and then gonna come back down type of situation. 0:12:49.040 --> 0:12:52.120 That's when you're gonna see the developers and then even 0:12:52.120 --> 0:12:58.040 more so the explorers follows suit and actually outperform the producers. 0:12:59.080 --> 0:13:01.040 So again that's kind of how the sector is broken 0:13:01.120 --> 0:13:03.679 up in terms of those three different subsectors and how 0:13:03.760 --> 0:13:07.280 the underlying commodity prices can have an impact on them 0:13:07.320 --> 0:13:10.440 depending on where you are in the cycle. Okay, and 0:13:10.480 --> 0:13:12.400 so you have like the producers are the ones that 0:13:12.440 --> 0:13:15.439 are actually producing the gold hence the name producers putting 0:13:15.440 --> 0:13:18.520 that gold to market. Um, but they they constantly need 0:13:18.559 --> 0:13:20.880 to be refilled, so they're kind of like draining their 0:13:20.920 --> 0:13:23.760 reserves of gold, and so they're leaning on the developers 0:13:23.760 --> 0:13:27.360 and the explorers to then keep bringing them uh fresh gold. 0:13:27.640 --> 0:13:30.720 So it looks like the market is really um kind 0:13:30.720 --> 0:13:32.360 of set up for like M and A, you know, 0:13:32.400 --> 0:13:34.400 mergers and absolutely all the way up. So that is 0:13:34.440 --> 0:13:37.120 that kind of the typical play. That's absolutely so you know, 0:13:37.240 --> 0:13:41.360 calin x per Se has a potential um to go 0:13:41.440 --> 0:13:45.240 into production. But more realistically, what you'd see as a 0:13:46.000 --> 0:13:48.319 producer mid tier major come out and I want to 0:13:48.360 --> 0:13:51.560 acquire that asset say then again to kind of go 0:13:51.600 --> 0:13:54.800 into their pipeline and production. Typically when you make a 0:13:54.840 --> 0:13:58.880 discovery from you know, discovery hole to producing seven years 0:13:58.880 --> 0:14:01.520 for copper and it's really no different for a lot 0:14:01.559 --> 0:14:03.520 of these other minds, and you can compress that timeline. 0:14:03.640 --> 0:14:06.199 You know, there's obviously permanent environmental studies that need to 0:14:06.240 --> 0:14:08.839 be done and what have you, but that's typically how 0:14:08.840 --> 0:14:12.280 it goes. And so the only way these these mid 0:14:12.280 --> 0:14:17.199 tiers really kind of replenish their future cash flows is 0:14:17.280 --> 0:14:20.240 buying these development stage assets and taking into production because 0:14:20.480 --> 0:14:23.080 again there's a lot of expertise and skill sets. I mean, 0:14:23.240 --> 0:14:25.280 it's one thing to find a mind, then there's amount 0:14:25.320 --> 0:14:28.160 of engineering and then actually going in and producing uh 0:14:28.520 --> 0:14:30.680 is you know, it's a lot of work and it's 0:14:30.680 --> 0:14:33.040 broken down in those subsectors and it's not you know, 0:14:33.080 --> 0:14:36.640 in terms of explorations, it's like a biotech stock. You know, 0:14:36.680 --> 0:14:39.800 you come up with your exploration thesis, which be simply 0:14:40.000 --> 0:14:42.360 like someone's trying to come up with those cure for 0:14:42.440 --> 0:14:45.840 cancer or concoction or what have you. And then you 0:14:45.920 --> 0:14:48.440 go and you test that hypothesis and we test our 0:14:48.520 --> 0:14:52.360 HYPOTHESI students our business by doing geophysical tests that will 0:14:52.520 --> 0:14:55.040 you know, further build up what that hypothesis is, and 0:14:55.200 --> 0:14:58.120 build our exploration model on different data sets. And then 0:14:58.160 --> 0:15:00.200 ultimately we've drill test it, which is the most sense 0:15:00.200 --> 0:15:02.520 of part of the business is drilling. Uh. And then 0:15:02.560 --> 0:15:04.520 once we drill it, that's really the truth machine they 0:15:04.560 --> 0:15:07.000 call it in the business, to see what you hid, 0:15:07.320 --> 0:15:09.960 is your hypothesis correct or incorrect, or what you need 0:15:10.000 --> 0:15:13.200 to do to continue vectoring to make that discovery no 0:15:13.320 --> 0:15:15.960 difference than a biotech cycle will have when a drug 0:15:16.000 --> 0:15:19.080 goes through celinical trials to see what are those results 0:15:19.120 --> 0:15:21.240 for those trials. Our trials happened to be the droll. 0:15:22.320 --> 0:15:24.520 But you can't create wealth in any other business as 0:15:24.560 --> 0:15:27.080 quickly as you can through a discovery. And then you know, 0:15:27.160 --> 0:15:29.480 that's really what we're focused on set out to do, uh, 0:15:29.520 --> 0:15:32.840 you know with caln X. Yeah. So as an investor 0:15:33.080 --> 0:15:35.680 looking to invest into the market, I mean, I I 0:15:36.160 --> 0:15:38.080 love the mining sector. That's why I've been talking about 0:15:38.120 --> 0:15:40.360 a lot lately. I mean, I see this massive need 0:15:40.400 --> 0:15:42.960 for gold, this demand as you say, and you know, 0:15:43.000 --> 0:15:46.760 the miners give us that asymmetric return. But as so 0:15:46.840 --> 0:15:50.680 as an investor looking into the space, um with that 0:15:50.760 --> 0:15:53.920 sustained gold price being up, like you said, the miners 0:15:54.160 --> 0:15:57.240 have um leverage to that, right, So they have so 0:15:57.320 --> 0:15:59.720 much gold or silver copper in the ground, so when 0:15:59.720 --> 0:16:04.240 the ice moves up, they have multiples on that UM. 0:16:04.320 --> 0:16:05.920 And I think that's why we get those big moves. 0:16:05.960 --> 0:16:08.080 I know in our portfolio we've we have several that 0:16:08.080 --> 0:16:10.200 have gone up a d percent. I think I talked 0:16:10.240 --> 0:16:14.280 about calin X on a video back in July, and 0:16:14.680 --> 0:16:17.520 it's up about I think sixty five percent just since 0:16:17.560 --> 0:16:19.640 I mentioned it in that video back in July. It 0:16:19.680 --> 0:16:22.920 was much higher. It's a little bit down um. And 0:16:23.040 --> 0:16:25.160 is that because of the reserves that you have in 0:16:25.160 --> 0:16:27.280 the ground is why it's really moved up? Or was 0:16:27.360 --> 0:16:31.480 it more? Uh? What was the driver for that? So 0:16:31.480 --> 0:16:35.080 it's twofold. Obviously we we had we have existing resources 0:16:35.120 --> 0:16:37.760 in the ground in the portfolio and you know, coming 0:16:37.800 --> 0:16:41.040 out of the negative sentiment, and that's really when I 0:16:41.040 --> 0:16:43.840 picked market bottoms on anything, whether it be an individual 0:16:43.840 --> 0:16:47.080 commodity or their overall capital markets. It's really when this 0:16:47.200 --> 0:16:50.040 peak fear, and there was certainly peaked fear in March, 0:16:50.120 --> 0:16:52.440 and so coming out of that and cerainly's gonna help us. 0:16:52.760 --> 0:16:56.600 But with that, we're also coming out of this you know, 0:16:56.640 --> 0:16:59.760 downturn so to speak, with key discoveries across our portfolio. 0:17:00.400 --> 0:17:03.320 And so we did hit two silver discoveries that are 0:17:03.400 --> 0:17:05.560 near surface with potential be a minimal to an open 0:17:05.560 --> 0:17:08.359 pit operation which has one third mining costs of an 0:17:08.400 --> 0:17:12.960 underground um again very widely space in New Brunswick near 0:17:13.000 --> 0:17:16.640 an International Creek property which also hosts a zinc lead deposit. 0:17:17.240 --> 0:17:19.960 And then in tantem to that we were vectoring in 0:17:20.800 --> 0:17:24.199 UH to a big target in Flint Fond, which is 0:17:24.480 --> 0:17:26.960 a community that's been in production for almost a hundred 0:17:27.040 --> 0:17:30.000 years and thirty two minds in County. That's an area 0:17:30.080 --> 0:17:32.920 that is due to have their flagship MIND shutdown in 0:17:33.240 --> 0:17:37.240 Q two two UH and we just made a significant 0:17:37.240 --> 0:17:42.760 discovery there UH and that discovery is going to be copper, gold, silver, 0:17:42.840 --> 0:17:45.800 and zinc rich which is in high grade, which is 0:17:45.840 --> 0:17:48.360 what Flint fond is known for a very very critical 0:17:48.400 --> 0:17:51.080 time for that community. And so right now again we're 0:17:51.280 --> 0:17:53.919 going to continue drilling there. We're gonna be following up 0:17:53.960 --> 0:17:56.240 also to the silver discoveries. But that was what drove 0:17:56.280 --> 0:17:59.000 that move. And as as just like I was mentioned 0:17:59.040 --> 0:18:01.880 in terms of a biotech stock, as we go forward 0:18:01.880 --> 0:18:04.480 and continue to drill and step out from that extra 0:18:04.600 --> 0:18:08.680 discovery hole and show the size of the deposit, then 0:18:08.680 --> 0:18:11.399 people can start really seeing, hey, the potential of what 0:18:11.480 --> 0:18:14.960 the discovery is. The rainbow discovery Manitoba, uh, and then 0:18:14.960 --> 0:18:17.679 the two silver discoveries in New Brunswick you know have 0:18:18.520 --> 0:18:20.879 and you know, and that's when you get a huge 0:18:20.880 --> 0:18:24.720 move in terms of equity valuation. And an explorer like ourselves, 0:18:25.080 --> 0:18:27.919 particularly callin X, has such a type capital structure with 0:18:27.960 --> 0:18:31.960 just eleven million shares out and some very very strong supporters, 0:18:32.560 --> 0:18:36.600 you know, within that scheerbase. So if I'm gonna summarize that, 0:18:36.840 --> 0:18:41.119 and then basically, you know, being being the the explorer 0:18:41.200 --> 0:18:44.000 is kind of the riskiest part because you don't know 0:18:44.040 --> 0:18:47.400 if you're gonna discover, but you're the greatest upside. So, 0:18:47.520 --> 0:18:49.959 just like most things of risk and reward, as you 0:18:50.040 --> 0:18:52.840 get further along, the price goes up. So you made 0:18:52.880 --> 0:18:55.359 a couple of big discoveries which brought the share price up, 0:18:55.720 --> 0:18:58.280 which now you're less risky, but if people jump in, 0:18:58.359 --> 0:19:00.960 now there's less upside. So as you get further along, 0:19:01.000 --> 0:19:03.400 back to your biotech example, as you get further along 0:19:03.400 --> 0:19:06.440 clinical trial, as you're closer closer, closer, the price moves up, up, up, 0:19:06.600 --> 0:19:09.040 and people can jump in. There's less risk, but there's 0:19:09.080 --> 0:19:10.840 less reward. Kind of a thing, right, and so it 0:19:11.000 --> 0:19:14.000 actually it's very unique right now with caln X coln X. 0:19:14.640 --> 0:19:16.280 When we were you know, as you mentioned, we traded 0:19:16.359 --> 0:19:18.600 to four dollars to share, but that's actually before we 0:19:18.680 --> 0:19:20.879 hit the discovery hole in Flint, Flont. We were just 0:19:20.960 --> 0:19:24.919 merely announcing we started that discovery hole in Flinn fund 0:19:25.359 --> 0:19:28.440 And in fact, now with you know calns trading roughly 0:19:28.480 --> 0:19:31.720 two dollars and fifty cents two thousand and sixty cents Canadian, 0:19:32.119 --> 0:19:34.879 you're able to buy the stock, if you're able to 0:19:34.880 --> 0:19:38.760 buy into these prices today at a cheaper price than 0:19:39.040 --> 0:19:42.119 before we actually physically hit on the discovery which is 0:19:42.160 --> 0:19:44.800 why you saw myself and in our team. You know, 0:19:44.880 --> 0:19:46.879 we we obviously can only purchase after we have a 0:19:46.960 --> 0:19:49.920 news go public um and you know we have significant 0:19:49.960 --> 0:19:52.720 blackouts during drilling. But you know, I was a purchaser 0:19:52.720 --> 0:19:54.280 of the stock and end of my own position about 0:19:54.320 --> 0:19:56.840 three dollars because I really did see us having a 0:19:56.840 --> 0:20:00.159 big move off of that base. And and you know, 0:20:00.400 --> 0:20:02.520 in my own own way, it's it also worked out 0:20:02.560 --> 0:20:04.399