[Company Overview and Q1 2024 Highlights](index=1&type=section&id=Company%20Overview%20and%20Q1%202024%20Highlights) The company's CEO highlighted environmental data validation and U.S. government interest, while Q1 2024 saw a net loss and specific liquidity figures [Executive Summary & CEO Commentary](index=1&type=section&id=Executive%20Summary%20%26%20CEO%20Commentary) The CEO emphasized 2024 as a pivotal year for validating environmental impacts with data, highlighting a significant environmental baseline data submission to the ISA. He also noted growing U.S. government interest in deep-seafloor minerals and the company's financial flexibility to support its exploitation contract application - CEO expects data to displace speculation on environmental impacts, with a **large environmental baseline dataset** submitted to the International Seabed Authority (ISA)[4](index=4&type=chunk) - The U.S. government is actively exploring **deep-seafloor minerals**, with the Pentagon currently analyzing domestic nodule processing and refining opportunities[4](index=4&type=chunk) - The company maintains **financial flexibility**, supported by major shareholders, to deliver a world-class application for a NORI exploitation contract[4](index=4&type=chunk) [Q1 2024 Financial Highlights](index=1&type=section&id=Q1%202024%20Financial%20Highlights) TMC reported a net loss of $25.2 million ($0.08 per share) and used $11.9 million in operations for Q1 2024. Total liquidity stood at approximately $49 million, including cash and credit facilities, with additional draws post-quarter end Q1 2024 Financial Highlights | Metric | Value (USD) | | :-------------------------------- | :---------- | | Cash used in operations | $11.9 million | | Net loss | $25.2 million | | Net loss per share | $0.08 | | Total liquidity (as of March 31, 2024) | ~$49 million | | Cash (as of March 31, 2024) | $4.0 million | | Drawn on credit facility (post-March 31, 2024) | ~$2.9 million | [Operational and Industry Developments](index=2&type=section&id=Operational%20and%20Industry%20Developments) The company achieved technological milestones like nickel sulfate production and strengthened its board, alongside significant regulatory and geopolitical advancements [Corporate and Technological Milestones](index=2&type=section&id=Corporate%20and%20Technological%20Milestones) TMC strengthened its board with Steve Jurvetson as Vice Chairman and achieved a world-first by producing nickel sulfate exclusively from deep-seafloor polymetallic nodules at pilot scale, demonstrating an efficient processing flowsheet - **Steve Jurvetson**, a renowned Silicon Valley investor, joined TMC's Board of Directors as **Vice Chairman** and Special Advisor to the CEO in April 2024[8](index=8&type=chunk) - TMC successfully produced the **world's first nickel sulfate** derived exclusively from seafloor polymetallic nodules during pilot-scale processing in April 2024[8](index=8&type=chunk) - The company's **efficient flowsheet** processes high-grade nickel-cobalt-copper matte directly to nickel sulfate, producing **fertilizer byproducts** instead of solid waste or tailings[8](index=8&type=chunk) [Regulatory and Geopolitical Updates](index=2&type=section&id=Regulatory%20and%20Geopolitical%20Updates) TMC's subsidiary NORI made a second extensive submission of deep-sea environmental data to the ISA's DeepData database. The ISA published a consolidated draft of deep-sea mining regulations, and the U.S. House of Representatives introduced legislation (RUSRA) supporting international governance and U.S. support for seafloor nodule collection and processing - NORI made a **second extensive submission of key environmental data** from prior baseline campaigns to DeepData, an open database managed by the International Seabed Authority (ISA), in May 2024[8](index=8&type=chunk) - The ISA published a **consolidated 225-page draft of deep-sea mining regulations** in February 2024, signaling the next phase in negotiations[8](index=8&type=chunk) - The U.S. House of Representatives introduced the **Responsible Use of Seafloor Resources Act (RUSRA)** in March 2024, calling for U.S. support for international governance and allied partners' seafloor nodule collection, processing, and refining[8](index=8&type=chunk) [Financial Review](index=3&type=section&id=Financial%20Review) The company reported a significant increase in net loss for Q1 2024, primarily driven by higher exploration and evaluation expenses, with detailed financial statements provided [Financial Results Overview](index=3&type=section&id=Financial%20Results%20Overview) TMC reported a net loss of $25.2 million for Q1 2024, an increase from $13.7 million in Q1 2023, primarily due to higher exploration and evaluation expenses, which rose to $18.1 million from $7.2 million YoY, driven by increased engineering work, nodule transportation, and personnel costs. General and administrative expenses also saw a slight increase Q1 2024 vs Q1 2023 Financial Performance | Metric | Q1 2024 (USD) | Q1 2023 (USD) | Change (YoY) | | :-------------------------------- | :------------ | :------------ | :----------- | | Net loss | $25.2 million | $13.7 million | +$11.5 million | | Net loss per share | $0.08 | $0.05 | +$0.03 | | Exploration and evaluation expenses | $18.1 million | $7.2 million | +$10.9 million | | General and administrative expenses | $6.6 million | $6.2 million | +$0.4 million | - The significant increase in exploration and evaluation expenses was primarily due to a **$10.4 million increase** in mining, technological, and process development, including increased engineering work, expenses for nodule transportation to Japan, and higher personnel costs[10](index=10&type=chunk) - General and administrative expenses increased due to **higher amortization of share-based compensation and consulting fees**, partially offset by lower legal costs[11](index=11&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for TMC, including the Balance Sheets, Statements of Loss and Comprehensive Loss, Statements of Changes in Equity, and Statements of Cash Flows, providing detailed financial positions and performance for the periods ended March 31, 2024, and December 31, 2023 (for balance sheet) or March 31, 2023 (for income and cash flow statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets decreased to $65.46 million from $68.90 million at December 31, 2023, primarily driven by a decrease in cash. Total liabilities increased to $63.65 million from $57.98 million, mainly due to higher accounts payable and accrued liabilities and warrants liability. Total equity significantly decreased to $1.81 million from $10.92 million Condensed Consolidated Balance Sheets (Key Figures) | Metric | March 31, 2024 (USD thousands) | December 31, 2023 (USD thousands) | Change (vs. Dec 31, 2023) | | :-------------------------------- | :------------------------------- | :-------------------------------- | :------------------------ | | Cash | $3,991 | $6,842 | -$2,851 | | Total Current Assets | $5,944 | $8,820 | -$2,876 | | Total Non-current Assets | $59,511 | $60,076 | -$565 | | **TOTAL ASSETS** | **$65,455** | **$68,896** | **-$3,441** | | Accounts payable and accrued liabilities | $36,470 | $31,334 | +$5,136 | | Total Current Liabilities | $36,470 | $31,334 | +$5,136 | | Warrants liability | $2,500 | $1,969 | +$531 | | **TOTAL LIABILITIES** | **$63,645** | **$57,978** | **+$5,667** | | Common shares | $454,431 | $438,239 | +$16,192 | | Deficit | $(574,096) | $(548,902) | -$25,194 | | **TOTAL EQUITY** | **$1,810** | **$10,918** | **-$9,108** | [Condensed Consolidated Statements of Loss and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) For the three months ended March 31, 2024, the company reported an operating loss of $24.68 million, significantly higher than $13.38 million in the prior year period. This led to a net loss of $25.19 million, or $0.08 per share, compared to a net loss of $13.75 million, or $0.05 per share, in Q1 2023. The increase was primarily driven by higher exploration and evaluation expenses Condensed Consolidated Statements of Loss and Comprehensive Loss | Metric | Three months ended March 31, 2024 (USD thousands) | Three months ended March 31, 2023 (USD thousands) | | :-------------------------------- | :------------------------------------------------ | :------------------------------------------------ | | Exploration and evaluation expenses | $18,123 | $7,169 | | General and administrative expenses | $6,559 | $6,214 | | **Operating loss** | **$24,682** | **$13,383** | | Equity-accounted investment loss | $78 | $219 | | Change in fair value of private warrants liability | $531 | $544 | | Fees and interest on credit facility | $271 | $27 | | **Loss and comprehensive loss for the period** | **$25,194** | **$13,748** | | **Loss per share - basic and diluted** | **$0.08** | **$0.05** | | Weighted average number of Common Shares outstanding | 311,521,854 | 272,029,603 | [Condensed Consolidated Statements of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) For the three months ended March 31, 2024, total equity decreased from $10.92 million at January 1, 2024, to $1.81 million, primarily due to the net loss of $25.19 million for the period, partially offset by $9.00 million from a Registered Direct Offering and $6.90 million in share-based compensation. Common shares outstanding increased to 318.29 million Key Changes in Equity (Q1 2024) | Item | Amount (USD thousands) | | :------------------------------------------------ | :--------------------- | | Total Equity as of January 1, 2024 | $10,918 | | Issuance of shares and warrants (net) | $9,000 | | Exercise of stock options | $190 | | Share-based compensation and expenses | $6,896 | | Loss for the period | $(25,194) | | **Total Equity as of March 31, 2024** | **$1,810** | | Common Shares Outstanding (March 31, 2024) | 318,291,383 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended March 31, 2024, net cash used in operating activities significantly decreased to $11.85 million from $23.48 million in Q1 2023, mainly due to changes in working capital. Net cash provided by financing activities was $9.05 million, primarily from a Registered Direct Offering. Overall, cash decreased by $3.14 million, ending the period with $3.99 million Condensed Consolidated Statements of Cash Flows (Key Figures) | Activity | Three months ended March 31, 2024 (USD thousands) | Three months ended March 31, 2023 (USD thousands) | | :-------------------------------- | :------------------------------------------------ | :------------------------------------------------ | | Net cash used in operating activities | $(11,852) | $(23,484) | | Net cash used in investing activities | $(340) | $0 | | Net cash provided by financing activities | $9,048 | $5,000 | | **Decrease in cash** | **$(3,144)** | **$(18,484)** | | Cash - end of period | $3,991 | $28,412 | - The decrease in net cash used in operating activities was largely driven by a positive change in accounts payable and accrued liabilities of **$5.54 million** in Q1 2024, compared to a negative change of **$14.76 million** in Q1 2023[23](index=23&type=chunk) - Financing activities in Q1 2024 included **$9.00 million** from a Registered Direct Offering[23](index=23&type=chunk) [Additional Information](index=3&type=section&id=Additional%20Information) This section provides details on the company's mission and exploration rights, conference call information, and a standard disclaimer regarding forward-looking statements [About The Metals Company](index=4&type=section&id=About%20The%20Metals%20Company) The Metals Company explores lower-impact battery metals from seafloor polymetallic nodules, aiming to supply metals for the global energy transition with minimal negative impacts and to establish a metals commons through tracing, recovery, and recycling. The company holds exploration and commercial rights in the Clarion Clipperton Zone - TMC's **dual mission** is to supply metals for the global energy transition with the least possible negative impacts and to trace, recover, and recycle metals to help create a metals commons[14](index=14&type=chunk) - The company holds exploration and commercial rights to **three polymetallic nodule contract areas** in the **Clarion Clipperton Zone** of the Pacific Ocean, regulated by the International Seabed Authority[14](index=14&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) TMC scheduled a conference call for May 13, 2024, at 4:30 p.m. EDT to discuss recent corporate developments, Q1 2024 financial results, and upcoming milestones. Registration links for audio-only dial-in and virtual webcast with slides were provided Q1 2024 Conference Call Details | Detail | Information | | :----- | :---------- | | Date | Monday, May 13, 2024 | | Time | 4:30 pm EDT | | Access | Audio-only dial-in or virtual webcast with slides (registration required) | | Replay | Available on Company's website under 'Investors' tab | [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, cautioning that actual results may differ materially from projections due to various risks and uncertainties. It lists numerous factors that could cause discrepancies, including regulatory approvals, environmental impacts, financing needs, and market fluctuations, and states that the company disclaims any obligation to update these statements - The press release contains **forward-looking statements** subject to **risks and uncertainties**, and actual results may differ materially from expectations[15](index=15&type=chunk) - **Key risk factors** include the ISA's ability to adopt the Mining Code, obtaining exploitation contracts, regulatory uncertainties, environmental impacts, financing availability, and fluctuations in metal prices[15](index=15&type=chunk) - The company expressly **disclaims any obligation to update** forward-looking statements, except as required by law[15](index=15&type=chunk)

TMC the metals company Inc. (NASDAQ:TMC) Q4 2023 Earnings Call Transcript March 25, 2024 4:30 PM ET Company Participants Craig Shesky - CFO Gerard Barron - Chairman and CEO Conference Call Participants Dmitry Silversteyn - Water Tower Research Matthew O'Keefe - Cantor Fitzgerald Vasu Patel - Patel Holdings LLC Operator Good afternoon, everyone, and thank you for participating in the metals company Fourth Quarter and Full Year 2023 Corporate Update Conference Call. Joining us today are the metals company's C ...

Key partners: PFS offshore progress 16 Post collection test monitoring Environmental baseline studies 17 18 PILOT COLLECTOR SYSTEM TEST PROGRAM IN 2022 100+ studies | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-39281 Table of Contents Securities registered pursuant to Section 12(g) of the Exchange Act: None Indicate by check mark if the regi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): March 22, 2024 TMC THE METALS COMPANY INC. (Exact name of registrant as specified in its charter) British Columbia, Canada 001-39281 Not Applicable (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) 595 Howe Street, 10th Floor Vancouver, Br ...

metals company The Metals Company Q3 2023 Corporate Update: Unlocking the World's Largest Estimated Undeveloped Source of Battery Metals November 9, 2023 Forward looking statements. This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that relate to future events, TMC the metals company Inc.'s ("TMC" or the "Company") future operations and financial performance, ...

Financial Data and Key Metrics - The company reported a net loss of approximately $12.5 million or $0.04 per share in Q3 2023, compared to a net loss of $27.9 million or $0.12 per share in Q3 2022 [33] - Exploration and evaluation expenses decreased to $7.9 million in Q3 2023 from $22.7 million in Q3 2022, primarily due to reduced environmental study spending and completion of the pilot mining test system [33] - General and administrative expenses were $4.6 million in Q3 2023, down from $5.9 million in Q3 2022, reflecting lower share-based compensation and insurance costs [34] - Free cash flow for Q3 2023 was negative $12.6 million, compared to negative $9.1 million in Q3 2022 [35] - The company held $22.5 million in cash as of September 30, 2023, with total pro forma liquidity standing at $56 million, including expected additional capital raise proceeds and an undrawn $25 million credit facility [36] Business Line Updates - The company has made significant progress on pre-feasibility work and the environmental impact statement for the NORI D Area, key prerequisites for the exploitation contract application [3] - The expected maximum capacity of the Hidden Gem vessel has been upgraded to 3 million wet tons of nodules per year, a 130% increase from the previous estimate of 1.3 million wet tons per year [10] - Pacific Metals Co (PAMCO) in Japan has validated that seafloor nodules can be processed through their current facility, producing intermediate products that align with the company's specifications [11] - The company expects to complete the pre-feasibility study in the first half of 2024, which will inform the application for an exploitation contract over the NORI D Area [11] Market and Regulatory Updates - The company has been sharing environmental data with stakeholders worldwide, including presentations at the recent ISA Meeting in Jamaica, where the data was well-received [4] - The ISA member states are working on streamlining regulatory tax into one document, with progress expected over the next two scheduled ISA meetings [5] - The company has a pro forma liquidity position of roughly $56 million, including $9 million expected from additional capital raise proceeds, $22.5 million in cash, and a $25 million undrawn credit facility [6] - The company's NORI and TOML projects are ranked as the largest undeveloped nickel projects in the world, with a nickel equivalent grade that stands apart from other resources [7] Strategic Direction and Industry Competition - The company is focused on delivering its mission with a capital-light approach, leveraging existing facilities like PAMCO in Japan for initial production [9] - The company's NORI D project outperforms all analyzed land-based production routes for nickel and copper and most for cobalt, according to a lifecycle assessment by Benchmark Minerals [14] - The company has developed a comprehensive set of sustainability goals and is engaging stakeholders for feedback to refine and finalize a robust set of targets and KPIs [17][18] Management Commentary on Operating Environment and Future Outlook - The company is encouraged by the progress at the ISA and the positive commentary from the ISA Secretary General on the close-to-final form of the regulations [28] - The company maintains its guidance on the intention to launch an application for an exploitation contract over the NORI D Area following the July 2024 ISA meeting [29] - The company believes its liquidity will be sufficient to meet working capital and capital expenditure requirements for the next 12 months [37] Other Important Information - The company has published its Second Annual Impact Report, examining the full scope of existing and future potential impacts, including lifecycle comparisons versus land-based resources [5] - The company has executed a complex three-desal campaign and continues to build upon its rich deep-sea dataset, with eight peer-reviewed papers published and many more to come [15] - The company has advanced its industry-first digital twin, DPE, in collaboration with Kongsberg Digital, bringing AI and hybrid machine learning to future deep-sea nodule collection operations [15] Q&A Session Summary Question: Regulatory concerns and potential delays - The company noted that 23 ISA member states have expressed reservations, but the majority continue to work on finalizing robust regulations [39] - The company believes that the legal obligation to deliver the mining code is not up for debate and expects more states to support the regulations as they near finalization [43] Question: Timing of profitability - The company expects to provide more detail on the economic model and profitability timeline with the release of the pre-feasibility study results in the first half of 2024 [44] Question: Processing of nodules sent to Japan - The 22 tons of nodules delivered to PAMCO in Japan have been used to demonstrate the viability of processing through existing facilities, while the remaining 2,980 tons are being used for testing and sharing with potential strategic partners [46][47] Question: Timing of additional capital raise - The $9 million capital raise is expected to be completed in staggered amounts, with $2.5 million expected by the end of November and the remaining $6.5 million in January [48] Question: China's potential illegal mining activities - The company views China's engagement with the ISA as constructive and does not speculate on potential illegal activities [49] Question: Post-collection test campaign - The company is not disclosing specific timing for the post-collection test campaign for security reasons but expects initial results to be available by the end of Q1 2024 [50][51] Question: China's potential application submission - The company believes it is unlikely for China or any other contractor to submit an application within several years due to the prerequisite of having at least three-plus years of environmental baseline data [52] Question: Cost of additional offshore campaign - The cost of the additional offshore campaign is within the company's guidance and is expected to be covered by the capital raise proceeds [53]

Part I Financial Information [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of loss, changes in equity, and cash flows, for the periods ended September 30, 2023 Condensed Consolidated Balance Sheets (Unaudited) | (in thousands of US Dollars) | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $27,873 | $49,602 | | **Total Assets** | $87,574 | $94,777 | | **Total Current Liabilities** | $19,344 | $41,614 | | **Total Liabilities** | $32,216 | $53,272 | | **Total Equity** | $55,358 | $41,505 | Condensed Consolidated Statements of Loss and Comprehensive Loss (Unaudited) | (in thousands of US Dollars) | Three months ended Sep 30, 2023 | Three months ended Sep 30, 2022 | Nine months ended Sep 30, 2023 | Nine months ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Exploration and evaluation expenses** | $7,905 | $22,663 | $23,172 | $40,340 | | **General and administrative expenses** | $4,613 | $5,944 | $15,958 | $22,502 | | **Operating loss** | $12,518 | $28,607 | $39,130 | $62,842 | | **Net loss and comprehensive loss** | $12,467 | $27,894 | $26,572 | $61,395 | | **Net loss per share - basic and diluted** | $0.04 | $0.12 | $0.09 | $0.27 | Condensed Consolidated Statements of Cash Flows (Unaudited) | (in thousands of US Dollars) | Nine months ended Sep 30, 2023 | Nine months ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(44,359) | $(46,760) | | **Net cash provided by (used in) investing activities** | $4,825 | $(959) | | **Net cash provided by financing activities** | $15,216 | $29,774 | | **Decrease in cash** | $(24,318) | $(17,945) | | **Cash - end of period** | $22,548 | $66,872 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, operational results, liquidity, and capital resources, noting the company remains in the exploration phase - The company is focused on preparing an application for its first exploitation contract for the NORI Area D, to be submitted to the International Seabed Authority (ISA) after the **July 2024** meetings Production is anticipated in **Q4 2025**, assuming a **one-year review and approval process**[99](index=99&type=chunk) - In **August 2023**, the company initiated a Registered Direct Offering to sell **12,461,540 common shares** and accompanying warrants, expecting gross proceeds of **$24.9 million**[100](index=100&type=chunk) - The company reported a **net loss of $12.5 million** for Q3 2023, a significant reduction from the **$27.9 million** net loss in Q3 2022 For the nine months ended September 30, 2023, the **net loss was $26.6 million**, down from **$61.4 million** in the prior year period[122](index=122&type=chunk)[134](index=134&type=chunk)[138](index=138&type=chunk) - As of September 30, 2023, the company had **$22.5 million** in cash Management believes this, along with proceeds from the Registered Direct Offering and available credit, is sufficient for the next twelve months However, an additional **$35 to $45 million** is needed to submit the exploitation contract application[144](index=144&type=chunk)[148](index=148&type=chunk)[150](index=150&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) The company's net loss decreased significantly in the third quarter and first nine months of 2023 compared to the same periods in 2022 Comparison of Financial Results (in thousands) | | For the Three Months Ended Sep 30, | For the Nine Months Ended Sep 30, | | :--- | :--- | :--- | | | **2023** | **2022** | **2023** | **2022** | | **Exploration and evaluation expenses** | $7,905 | $22,663 | $23,172 | $40,340 | | **General and administrative expenses** | $4,613 | $5,944 | $15,958 | $22,502 | | **Net Loss for the period** | $12,467 | $27,894 | $26,572 | $61,395 | - Exploration and evaluation expenses for Q3 2023 decreased by **$14.8 million** year-over-year, mainly due to a **$14.4 million** reduction in environmental studies and a **$3.7 million** reduction in PMTS costs, as the collector test was completed in **November 2022**[135](index=135&type=chunk) - General and administrative expenses for Q3 2023 decreased by **$1.3 million** year-over-year, primarily due to lower share-based compensation as certain long-term incentive plan options were fully amortized in **2022**[136](index=136&type=chunk) - A gain of **$13.75 million** was reported in the first nine months of 2023 from NORI's contribution of a **2%** gross overriding royalty on its project area to Low Carbon Royalties[142](index=142&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily from private placements and a Registered Direct Offering, with **$22.5 million** cash on hand as of September 30, 2023, and an estimated **$35-45 million** needed for the exploitation contract application - As of **September 30, 2023**, the company had cash on hand of **$22.5 million**[144](index=144&type=chunk) - The company estimates it will require an additional **$35 to $45 million** to fund the submission of a high-quality application for an exploitation contract for NORI Area D following the **July 2024** ISA meeting[150](index=150&type=chunk) - The company has a **$25 million** unsecured credit facility with an affiliate of Allseas, which was undrawn as of the report date The maturity was extended to **November 30, 2024**[154](index=154&type=chunk)[177](index=177&type=chunk) - In **August 2023**, a Registered Direct Offering was initiated To date, it has provided gross proceeds of **$15.9 million**, with an additional **$9 million** in committed funding expected by **January 31, 2024**[155](index=155&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's exposure to market risks, including interest rate, credit, and foreign currency fluctuations, with future commodity price risk anticipated upon commercial production - The company is exposed to **interest rate risk** on its cash investments, which are currently held in investment-grade short-term deposits[188](index=188&type=chunk)[189](index=189&type=chunk) - **Foreign currency risk** exists due to transactions in Canadian dollars, Australian dollars, Euros, and British Pounds, though cash is primarily held in U.S. dollars to minimize exposure[191](index=191&type=chunk) - Upon commencing commercial production, the company will be exposed to **commodity price risk** for nickel, copper, manganese, and cobalt, which will be the principal source of future revenue[193](index=193&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting during Q3 2023 - Based on an evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of September 30, 2023[196](index=196&type=chunk) - **No changes** occurred in the company's internal control over financial reporting during the three months ended September 30, 2023, that have materially affected, or are reasonably likely to materially affect, internal controls[197](index=197&type=chunk) Part II Other Information [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several material legal proceedings, including lawsuits against investors, a shareholder class action, and an SEC investigation - The company is pursuing **litigation** against two investors who failed to fund their investment commitments related to the 2021 Business Combination[202](index=202&type=chunk) - A putative **class action lawsuit** was filed against the company, an executive, and a former director, alleging false and misleading statements The company has filed a motion to dismiss and is awaiting a ruling[203](index=203&type=chunk) - The company is cooperating with an **SEC investigation** concerning its 2020 acquisition of Tonga Offshore Mining Limited (TOML) and the Business Combination[204](index=204&type=chunk) - An investor from the 2021 private placement has filed a **lawsuit alleging breach** of representations and warranties The company has filed a motion to dismiss this complaint[205](index=205&type=chunk) [Risk Factors](index=56&type=section&id=Item%201A.%20Risk%20Factors) This section updates the company's risk factors, adding a new risk concerning the Post-Collector Environmental Assessment and its sufficiency for the NORI Area D exploitation application - A **new risk factor** was added regarding the Post-Collector Environmental Assessment, stating there can be no assurance of its success or that the data gathered will be sufficient for the NORI Area D exploitation application[207](index=207&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details unregistered equity transactions, including the issuance of **11.58 million** common shares to Allseas and **4.15 million** common shares for a vessel use agreement - On **August 9, 2023**, **11,578,620 common shares** were issued to Allseas following the exercise of the Allseas Warrant for a cash price of **$115.8 thousand**[208](index=208&type=chunk) - On **August 1, 2023**, **4.15 million common shares** were issued to Allseas as consideration for an Exclusive Vessel Use Agreement for the 'Hidden Gem' vessel[209](index=209&type=chunk) - The company **did not repurchase** any of its equity securities during the three and nine months ended September 30, 2023[210](index=210&type=chunk) [Defaults Upon Senior Securities](index=56&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable, indicating no defaults upon the company's senior securities during the reporting period - **Not applicable**[211](index=211&type=chunk) [Mine Safety Disclosures](index=56&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable, as the company is not subject to mine safety disclosure requirements - **Not applicable**[212](index=212&type=chunk) [Other Information](index=56&type=section&id=Item%205.%20Other%20Information) No other information is disclosed for the period covered by this report - **None**[213](index=213&type=chunk) [Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Quarterly Report on Form 10-Q, including key agreements and officer certifications - The report includes several **key agreements** as exhibits, such as the Exclusive Vessel Use Agreement with Allseas Group S.A. and an amendment to the Unsecured Credit Facility[215](index=215&type=chunk) - **Certifications** by the Principal Executive Officer and Principal Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are filed with the report[215](index=215&type=chunk)

metals company The Metals Company Q2 2023 Corporate Update: Unlocking the World's Largest Estimated Undeveloped Source of Battery Metals August 14, 2023 Forward looking statements. This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that relate to future events, TMC the metals company Inc.'s ("TMC" or the "Company") future operations and financial performance, ...

Financial Data and Key Metrics Changes - The company reported a net loss of approximately $14.1 million or $0.05 per share for Q2 2023, compared to a net loss of $12.4 million or $0.05 per share for Q2 2022 [33] - Exploration and valuation expenses decreased to $8.1 million in Q2 2023 from $10.2 million in Q2 2022, primarily due to reduced share-based compensation and lower spending on environmental studies [34] - General and administrative expenses were $5.1 million for Q2 2023, down from $8.1 million in Q2 2022, reflecting lower share-based compensation and decreased insurance costs [34] Business Line Data and Key Metrics Changes - The company plans to increase production capacity for the Project Zero offshore system from an estimated 1.3 million wet tonnes per annum to 3.0 million wet tonnes per annum, a potential increase of 130% [8] - The company indicated that approximately $60 million to $70 million in additional cash is needed to reach the application point for exploitation, with about half of this amount allocated to the environmental and social impact assessment [50] Market Data and Key Metrics Changes - The company noted a shift in media coverage supporting nodule collection, with significant endorsements from influential figures like James Cameron [12][13] - The U.S. government is increasingly focused on securing critical minerals, with recent legislative actions emphasizing the importance of nodule processing for national security [4][15] Company Strategy and Development Direction - The company intends to submit an application for an exploitation contract for NORI Area D following the July 2024 ISA session, with production expected to begin in Q4 2025 [7][19] - The company is focused on strengthening its environmental dataset through additional offshore campaigns to support its application [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the likelihood of receiving contract approval due to the positive environmental data being gathered [40] - The geopolitical landscape is seen as favorable, with increasing support for nodule collection as a means to secure critical minerals and reduce reliance on land-based mining [46][47] Other Important Information - The company raised approximately $27 million in gross proceeds at $2 per share, with a potential for an additional $11 million by mid-September [10] - The company has no debt and held cash of $20 million as of June 30, 2023, which, along with the recent capital raise, is expected to meet working capital and capital expenditure commitments for at least the next 12 months [35] Q&A Session Summary Question: Can you discuss the recent financing and investor confidence? - Management highlighted the recognition of the asset's value and the political tailwinds supporting the clean energy transition as key factors driving investor confidence [37][38] Question: How will the political landscape affect ISA discussions? - Management indicated that the ISA is expected to complete the mining code, with geopolitical factors playing a significant role in the discussions [42][44] Question: What is the breakdown of the $60 million to $70 million needed for the application? - Approximately half of the costs are related to the environmental and social impact assessment, with the remainder covering operational expenses and capital expenditures [50] Question: What is the status of the Bechtel prefeasibility study? - Management stated that the prefeasibility study will be crucial for updating the resource classification and improving the economic model for the project [59]