Brett:

Really fascinating. I’m thinking like an apartment complex, you have a net operating income you have the management, and you have utilities, and you have repairs, and maintenance, and you have CAPEX, and you have all of these things, reserves, I mean, it’s the same thing, it’s a business model. What you’re saying is the key here is making sure that you’re going into it with success on the exit as well as on the management of it. Because even if you find something remote place, if you find it, the ability to get it out, and to actually be able to make sense on the numbers to exit it. You have a very little nook and cranny has to be considered.

Max:

So in terms of if you look at the most successful people in the mining business, most successful people probably in real estate, I could give you a real estate analogy just as easily. But if you don’t know who you’re going to sell it to, before you go out and do it. It’s like you don’t know your customer. If you go into housing, you want to be a housing redeveloper You want to go into an area that you see is going to be favorable. One of the most successful traders I’ve ever had was when I right out of college during the financial crisis, when I was like, what are you gonna move out? I was like, I better go buy a place. so I ended up buying a place. But it was the most hated area at the time. It was people say, you know that most risk you’d say because it was being re gentrified. We’ll put it that way. It wasn’t a very favorite place to live. But my view in terms of that in terms of real estate, you want to put yourself to proximity, and my proximity was to the urban environment, I felt that the trek that all these homeowners were having living in more suburban areas and taking a toll on people. I think as empty nesters came around, they wanted to urbanize in gonna go where they can have more of an urban type of field. so with that being said, I made, one of my first investments in San Antonio was in a historic neighborhood that just got deemed historic a couple of years later, was going on within a mile of the Alamo. But it was unfavorable. But I saw the transition to come in the same thing in terms of mining and exploration, if you look in the base metals, base metals weren’t excited to explore for when I started Callinex or took over Callinex in 2014. It was the bottom of the cycle. you want to enter a cycle in a cyclical environment at the bottom, and you want to exit at the top, just so you want to buy a stock at the bottom, you can exit the top. The base metal markets in general, are cyclical. you want to look to position yourself for the exit. You want to do that where you kind of have your end buyer in mind and your access to the market in mind. So that’s kind of how we looked at building Callinex. Just like I would look to build any business outside of mining as well.

Brett:

Excellent. So talk to us a little bit more about Callinex. The vision and where you guys are at and tell us maybe about a cost a little bit about that one mind, you’re talking about you. You mentioned it, I forget the name of the place, but just kind of gives us the operations and the overview of Callinex, what it does, and then and then mentioned to I think he said it trades on the New York Stock Exchange or maybe NASDAQ or somewhere. Would you just kind of give us that and how if someone wants to like hey, I’m digging this I want to dive in more take the next step to BBB and investor or something else could you talk a little bit about that.

Max:

First things first, we trade on the Toronto Venture Exchange and CNX. We also trade in the US under the OTC under the ticker CLL access. So that’s typical for exploration companies like ourselves. in terms of the company’s portfolio, so we have a deep portfolio, the portfolio has been built, again, proximity infrastructure, I’ll just touch on the stuff in Eastern Canada, we acquire these assets at the bottom of the Zinc cycle. One of them’s near-surface, minimal to an open pit based upon a preliminary economic assessment we did is a zinc-lead deposit. That’s just right of a provincial highway 25 kilometers away from a deepwater port power station rail line that gives you direct asset access to the market and the high unemployment rate in that community. then also in the buckskins district of Newfoundland, we have just announced a sizeable near-surface pick constrained gold copper zinc resource. So again, those assets are already in the portfolio, they’ve been drilled out, and really a backstop to the valuation that you see today. then in terms of our discovery, we’ve had a long-term view. I mean, when I took over Callinex in 2014, I built a technical team around me that has done it before and look to do it again, with a long term view that the mine Flin Flon the triple seven mines were going to be in of its mine life when we said that in 2014. So again, our technical team has been built in been credited with the discovery of three of the four largest mines in Flin Flon history, that’s been a camp is taking 26 mines in the immediate town, they are into production in triple sevens due to shut down next May. So again, triple seven do shut down next May. That’s 785 jobs in a town of 5500 people that are forecasted to go down to 50 by 2023. So the town is on a goddess back against the wall, so to speak, it’s not the first time. So we’re not living in a state of fear. In that, we do believe that we can change that based upon what we’ve discovered at the rainbow. A rainbow discovery is less than 30 minutes drive from Flin Flon by existing all-weather road, you can literally drive up to the property. The discovery is actually sitting within a mineral lease that has advanced permitting. In terms of hydroelectric power, it’s clean power, within 200 meters as a high voltage hydroelectric power line. There’s a historic shaft within 500 meters. when we’ve been made that discovery last August, it’s shaping up to be one of the top 10 highest-grade copper discoveries on the planet. To give you an idea of the average grade of copper mined on the planet right now is half a percent, to be in the top 10 highest-grade copper mines in the world. Predominantly seven out of 10 of them are central Africa, you need to be over 3.75% copper. By and large. The copper intercepts that we’ve announced outside of in rainbow have been over 4% copper and also carry gold, silver, and zinc as byproducts. We’ve now delineated the resource. The last we were just given an update. We’ve rolled up within 100 meters of surface, which is much more shallow than our initial discovery hole of 900 meters vertical depth and so on. Building tonnage there. So we’re building tonnage of a very, very high-grade copper, that has the potential to be powered by clean, low-cost power, at a really critical time as the world shifts away from hydrocarbons and oil and gas, and electric vehicles. So that’s why you have copper trading near all-time highs right now. So we’ve opportunity here with rainbow as we delineate it, to save a town to provide through the foot and very three-putt at a very critical time for this community. But also at a very, very critical time for the global markets in North America, in particular, as a world looks to shift away from hydrocarbons onto base metals. we have an opportunity not only to provide potential production but to do that in the cleanest way possible because it is the highest grade with the lowest cost, cleanest power source out there. Which will ultimately make it when we build sighs put economics around that one of the cleanest copper concentrates to be produced in the world. that’s the business’s aunties. That’s what we’re on to and that’s why I’m so passionate excited about our company.

Brett:

That’s amazing. You could write a book or two on all of that or a movie too. I’m curious about returns. I’m not sure if you’re allowed to even talk about returns. I want to make sure we are careful about that with certain things. But I mean, in real estate commercial real estate people are at 6,7,8 percent, maybe 9%, that’s really good. Then IRR is at 15 to 17. Already a three to five-year period depending on the level of risk and development of a property or if it’s just a value add a property or a lot of different moving factors. There are people borrowing it three to 4%, you’re leveraging up get the depreciation but anything as far as the returns that you can kind of talk about to kind of give our audience away. Cryptocurrency, I have clients that have invested 50,000 went to $50 million over seven crazy Bitcoin, Ethereum type of stuff and they’re selling, they’re diversifying with our strategy and going into different diversifying, really wanting to go into different things that are more stable. So, what can you just tell about overall investment returns, and what someone could be looking for if they’re interested?

Max:

In this business is where you can create the most amount of wealth for yourself in your shareholders in my position, obviously, I am a very large shareholder, myself and my family collectively own 15% of Callinex. So this is, obviously my big focus in, we’re gonna build wealth for myself and my family. With that being said, if you look at Callinex and evaluation when the metals are out of favor and were pre-discovery at Pine Bay, we got to Lowe’s, a three and a half million dollar market cap, which we were trading less in cash at one point there. At some point we’ve had big returns, I think we were up over 10 times from the bottom to our peak earlier this year. So you can create a really a lot a lot of wealth in a very short period of time on discovery. now is a very unique time, because the markets have kind of been off over the past four months, the share price has lagged. But that’s not driven by fundamentals. So in terms of what we’ve discovered, I think this is very early on because as we de-risk the discovery, which is the real key, we hit the discovery, which you saw a big revaluation. But as we delineate the discovery in the world can see what we are we check the boxes, so to speak, that’s when we can drive even higher share price depreciation, so equity valuation today of sub 30 million. While we’ve had a big upside, historically, we’re really just the beginning. Because some of these discoveries can ultimately go on to get taken out for billions of dollars, depending on how big they are. so we’ve got to show size and scale with rainbow. But in we’re very early on and doing that. we’re currently today trading at the same valuation when we only have three holes in the discovery. So I think that’s a really big opportunity during tax loss, selling, realizing you’re buying a company that’s done a tremendous amount of de-risking, since its initial discovery holes that were discovered last year, due to forces that are outside the fundamentals of the company, so to speak, with a big pipeline of news flow to come, I think is a tremendous opportunity in the shorter term. I think longer-term as we delineate the resource, we put ourselves in a really unique position to create a lot of value for ourselves and to meet the needs of the community.

Brett:

It’s awesome. I really like it. I’m really fascinated and I’ve never personally invested in metals just because I haven’t known someone like yours or gotten connected with one. So I think it’s really neat. I think your audience is gonna appreciate the opportunity to learn more about Max Porterfield by going to callinex.ca. That being said, I want to shift a little bit to capital gains tax briefly, and then we’ll go into our lightning round since we’re running out of time here. So you’re from Texas, I’m from California, Texas, previously, historically, and really forever has had better tax laws in California, A lot of the major companies are moving out of California to Texas. People are frustrated with capital gains tax when they go to sell their public stock, private stock. It could be anything that subsidies capital gains tax cryptocurrency, it could be precious metals, it could be artwork, collectibles, real estate. So I’m just curious being that you’re on kind of both sides of Texas and Canada now as a dual citizen, what’s been your biggest frustration as it pertains to capital gains tax, and or deferral when you want to exit at a high spot?

Max:

Well, candidly, I’m in a unique situation, because I am actually a dual citizen of both countries now. I can tell you that one of the most frustrating things about being an ex-pat is the US government’s the only government in the world that taxes you based on your global income. So really, I’m in a position because of that, I can’t shelter my a lot of my wealth in the same way that the average person can, because I’m not a US citizen living in Canada, I cannot invest in the equivalent of a Roth IRA in Canada, because of the way that the US government looks at that as a foreign trust. So I’m limited to that. at the end of the day, if I’m in a situation where I can limit my tax exposure in the United States in Canada, I then have to pay the United States government. So I pay an exceptional amount of tax. Do I think it’s fair and not necessarily so. But at the end of the day, I do realize that that’s part of life. So in terms of my own bone to pick is, am paying the highest prevailing tax rate, and then become a Canadian citizen, if I decided to move. Now I get an exit tax which is trust me, you can exit taxes and us to the Senate. Well, I am just in a different financial position. Because I emigrated to Canada when I was 26, or 27 or so. Now I’m 37. So I’m in a different financial situation. So again, I think being an ex-pat, as is very, obviously great being an American, but I think treating all Americans as tax mules, when you leave the country, not necessarily to evade taxes, but to just change your life. I don’t necessarily agree with candidly, in now, you look to renounce a US citizen they’ll chase you for seven years after just as a kind of foresight that you continue to file after seven years at pay the exit tax. So that’s, that’s been my own situation. I know my situation is very unique.

Brett:

Thanks for sharing that. I appreciate that. It’s good to know about the other one that’s kind of for nationals who are investing in US investments and are subject to capital gains tax, and or build up their wealth inside of the US. It’s only a $60,000 exclusion on the death tax, which is really fascinating. If you’re married and you’re an American citizen, it’s 22 million married right now, 12 million single, but anything above and beyond that gets hit with a 40% death tax. That’s not to do with a stepped-up basis. if your foreign national team works, you only have $60,000. So let’s imagine you, you came your foreign, foreign national, and you invested in the United States for 50 years, and you built your net worth up to $100 million inside of the US. if it’s inside the taxable estate, your exclusion as a foreign or not a US citizen, it’s going to be $60,000, which means 40 million, the day you die after six months is owed to the US you’re like, wait, what? Whereas if you’re least if you can get it outside your taxable estate and or do some estate tax planning, You can that or even potentially eliminate some of that with proper planning. That’s part of what we’re here to help people do and how to do that you can go to capitalgainstaxsolutions.com and we can talk about the Deferred Sales Trust. That being said, are you ready for the lightning round?

Max:

Let’s do it.

Brett:

All right, knowing what you know now, Max, if you go back to your 25-year-old self, what’s the one golden nugget you tell yourself to do?

Max:

Trust myself and trust my intuition.

Brett:

Perfect. Question number two, what’s the number one book you’ve recommended the most in the past year?

Max:

That would be Joe Dispenza, Breaking the Habit of Being Yourself. The book is really on a scientific approach or basis when you meditate, what that does to your brain on a scientific level and your brain waves to get yourself in suggestible state candidly, I owe a lot of the success that I have because of meditating, not necessarily the book itself. But I was already learning to meditate through a guy that I have, so to speak. it was the best thing that ever happened to me. I’m a guy that inherently likes to help people, as you probably tell. So if I ever see anybody that can benefit in one way or another, I’m open to sharing. Certainly, I think, mental health, particularly now with everything going on in the world, has benefited me dramatically. That would be the book that would kind of break it down in simple terms, with more of a scientific approach to the process,

Brett:

Beautiful. I love Breaking the Habit of Being Yourself. Question number three, what are you most curious about right now?

Max:

I would say up until that point, 2019. If you’d asked me at 30, when I became CEO of Callinex, I would have told you the fear of failure. As I mentioned before, I don’t live in that state of failure anymore. So, I’m driven by a different mindset.

Brett:

That’s beautiful. It’s a great transformation. Thank you for sharing that. Next question, what are you most curious about now?

Max:

What I’m most curious about right now, is how they can think about unwinding this debt that the country the globe has gotten themselves into. It’s very concerning, I believe they’re gonna inflate out of it. I think the only way to inflate out of that obviously is capital preservation in mitigating taxes is one thing, but you’ve got to basically out, gain the inflation rate at this point. I really think that we’re reliving a period of time, not dissimilar to the early 1960s through to the 1980s, where you have a lot of the world space exploration was big at the time, the US got itself off the gold standard. At that time, you had the advent of the Cold War, which I think was re percolating with a different foe right now. As opposed to maybe the Russians we now have the Chinese to pick a bone with the oil and gas markets, the different rights movements that are very particular right now I see that really is a repeat as we kind of go through that process right now and you can learn a lot about history and how to position yourself and that’s a candidly why I feel like I exceptionally position what’s going on right now. Government spending, infrastructure spending, I’m really watching all those things. I think we’re in a perfect storm here for a big rise, but looking into the future. I am obviously looking for any kind of I don’t say dangerous but anything on the horizon that can derail that.

Brett:

Yes, fantastic Max. For our listeners who want to get in touch with you. What’s the best place for them to connect with you?

Max:

Well, definitely on our website at callinex.ca you can get our contact information or news flow as well. Then if you’d like to purchase shares you can do so in Canada under the ticker see annex on the Toronto Venture Exchange in the US and Callinex Mines Inc. (CNX.V)

Brett:

I want to thank you for being on the show, Max Porterfield. I wanna encourage you to keep using the gifts and talents you’ve given intuition and foresight, taking a visionary approach to the macroeconomics of all things metals, taking Callinex to the next level, and helping people create preserve our wealth, the metals.