THIS IS THE ONE TO WATCH!

This is huge; some industries were HIT badly from the trade dispute and some got OBLITERATED.

When this trade war began, I told you that I will not stop until I find the most beaten-down, yet profoundly undervalued and well-financed junior company and I have FINALLY found it.

I’m never cease to be amazed by the boom and bust cycle in the commodities business and what it can do, but even I had to shake my head and make sure my eyesight was intact when I saw the following:

1. In October/November of 2016, just when Donald Trump was elected, this stock had a market of CAD$60M. In 2018, as the trade war intensified, it had a market cap of CAD$40M.

Today, the same company, which owns the SAME EXACT assets, has a market cap of only a few millions dollars. In three years, the trade dispute wiped-out over CAD$50M of equity; that’s around 90% of the value GONE!

1. The enterprise value is quite low.

Get this, the company’s PEA (Preliminary Economic Assessment) on just TW0 of its projects, out of a total of six, has a Net Present Value, based on a discount rate of 8%, (NPV), pre-tax of CAD$230M (post-tax of CAD$128M)!

In my career, I’ve never encountered this scenario, ever. The market cap is less than CAD$10M.

In early 2018, the same company was worth 10-times its current value with the exact same assets.  If the trade fears subside, its base metals portfolio may get attention again.

Since 2017, the Nash Creek Indicated zinc equivalent resource was increased, thanks to successful drilling programs, to 13.6 Mt averaging 3.2% Zn Eq. (2.7% Zn, 0.6% Pb and 17.9 g/t Ag) containing 963 million pounds of zinc equivalent mineralization, a growth of 74% since the project was acquired in 2016.  Additionally, the Inferred zinc equivalent resource increased by 385%, to 5.9 Mt averaging 3.1% Zn Eq. (2.7% Zn, 0.5% Pb and 14.0 g/t Ag) containing 407 million pounds of zinc equivalent mineralization. In other words, while this unjustified decimation of equity is occurring, the geologists are making SIGNIFICANT PROGRESS.

Management and associates are all over this, owning 28% of the company.

Institutions and family offices own an additional 21% of the outstanding shares and the reason is that the jurisdictions are some of the most prolific on the planet, both from the standpoint of historical mining success and of safety.

Nash Creek and Superjack, Callinex Mines issued a Preliminary Economic Assessment (PEA) that has tagged the property with the Net Present Value, based on a discount rate of 8%, (NPV), pre-tax of CAD$230M (post-tax of CAD$128M).  Further, the Nash Creek and Superjack properties have significant exploration upside along a 20-kilometre trend with previously identified high-grade mineral occurrences..

Callinex Mines (TSX-V: CNX & US: CLLXF) is a rare case – know that.

Top to bottom, you can go through the lists of the thousands of mining companies that trade on the public markets and you won’t FIND even one that owns an asset like Nash Creek and trades for 6%-10% of what it did just three ago. This is a CRITICAL moment, as I see it.

In October and in November of 2016, just when Donald Trump was elected, this stock had a market value of CAD$60M. In 2018, as the trade war intensified, it had a market cap of CAD$40M. Base metals have been one of the unintended casualties of the dispute between East and West and of the zero rates policies of central banks.

Look at the ENTIRE TSX Venture Exchange chart; it’s been brutal!

In 12.5 years, the exchange is down 84.2%. In normal times, this would not be happening.

Thanks to this, investors that are PATIENT and are willing to bite their lips, can buy stocks that are generationally-cheap and wildly discounted.

Callinex Mines (TSX-V: CNX & US: CLLXF) is the same company it was three years ago. It owns the SAME EXACT assets, but has a market cap of CAD$8.6M. In three years, the trade dispute wiped out CAD$51.4M of equity; that’s 85.6% of the value – GONE!

Callinex is currently implementing its fully funded drilling program at both Nash Creek and Superjack projects. The Nash Creek and Superjack projects are the company's flagship assets and represent its most advanced projects.

In Flin Flon, adjacent to Hudbay’s 777 mine, Callinex Mines (TSX-V: CNX & US: CLLXF) owns the Pine Bay Project.  The 777 mine is part of a community consisting of 32 mines that have operated over the past 95 years.  The 777 mine is going to be depleted by 2022, so if HudBay doesn’t want to undergo reclamation costs that could be in the hundreds of millions, they MUST acquire a new deposit and get it up and running. Callinex Mines owns Pine Bay, which is an asset in the vicinity that shows promise with a new exploration tactic that could yield something significant. Now that’s an unbelievable exploration opportunity.

Pine Bay in the Flin Flon district is the WILD CARD. If their hunches are proven right, the exploration program in that camp could be no less than a game-changer.

Your bet is that they’re right, plain and simple.

From a valuation perspective, you’re buying shares for as little as some of the founders and institutions bought their own stocks. I mean, at these levels, the projects are priced at the value of the dirt, not the mineralization.

The rule is to buy CHEAP or not buy AT ALL. My strategy is to pay below CAD$1.25 and accumulate over time.

Max and his award-winning team of geologists are going to sink their teeth into another drilling program in Nash Creek and in Superjack, shares literally took off.

The following is a recap of the company’s story:

1. 1.Nash Creek is the most advanced of their six projects. Max and the team have advanced it so much that it is part of the MINORITY of resource assets that ever reach the PEA stage (Preliminary Economic Assessment).

The reason they’re drilling again, starting today, is to enhance the economics and resource making it an attractive asset – that’s a sound strategy.

1. 2.Pine Bay in the Flin Flon district is the WILD CARD. If their hunches are proven right, the exploration program in that camp could be no less than a game-changer.

Your bet is that they’re right, plain and simple.

From a valuation perspective, you’re buying shares for as little as some of the founders bought their stock. I mean, at these levels, the projects are priced at the value of the dirt, not the mineralization.

Know this: before Trump started the trade war that made BASE METALS the most hated sector in the market, Callinex was worth CAD$60M, which is 7-TIMES today’s value.

As late as last year, before the tariffs were implemented, the company was worth 5-TIMES its current valuation.

This is what investors LIVE FOR in the resource sector. When everyone LOVES a company and just can’t stop talking about it, it’s easy to buy, but on most occasions, that spells doom.

Buy cheap or don’t buy at all!

Cautionary Note.  The PEA is preliminary in nature and it includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the PEA will be realized