Financial Highlights - TMC has $165 million in liquidity as of November 13, 2025, excluding in-the-money warrants [8] - Potential proceeds from Class A and Class C warrants that are in-the-money today is approximately $54 million [14] - Q3 2025 operating loss was $55.3 million, compared to $19.9 million in Q3 2024 [84] - The company's cash balance increased mainly due to proceeds from warrants and stock options, with $7.1 million in proceeds in Q3 2025 and $12.8 million in October 2025 [11, 12] Resource and Production - A billion-tonne resource could supply the US with manganese for 330 years, cobalt for 95 years, nickel for 210 years, and copper for 5 years [18, 20] - The company estimates first production in Q4 2027 [65] - The PFS NPV is $5.5 billion, and the IA NPV is $18.1 billion, resulting in a combined NPV of $23.6 billion [62, 67] - The Pre-Feasibility Study (PFS) projects revenue of $595 per dry tonne of nodules, with an EBITDA of $254 per dry tonne (43% margin) [72, 73] Regulatory and Strategic - The US depends entirely on imports for primary nickel, manganese, and cobalt, and 45% for copper [15, 16] - NOAA is streamlining the review of applications for Exploration Licenses (ELs) and Commercial Recovery Permits (CRPs) [32] - The United States and Japan will collaborate on developing rare earth minerals from Japan's seafloor [25]

Financial Performance - The company experienced an operating loss of $55.4 million and a net loss of $184.5 million, or $0.46 per share, for Q3 2025, compared to a net loss of $20.5 million, or $0.06 per share, for the same quarter in 2024 [6][15]. - For the three months ended September 30, 2025, the operating loss was $55,359,000, compared to $19,962,000 for the same period in 2024, representing an increase of 177% [26]. - The net loss and comprehensive loss for the period after tax was $184,517,000 for Q3 2025, significantly higher than $20,520,000 in Q3 2024, indicating an increase of 800% [26]. - The basic and diluted net loss per share for Q3 2025 was $0.46, compared to $0.06 in Q3 2024, reflecting a 667% increase [26]. - For the nine months ended September 2025, TMC reported a loss of $279,446 thousand, compared to a loss of $65,882 thousand in the same period of 2024, indicating a significant increase in losses [31]. Cash and Liquidity - As of September 30, 2025, TMC reported total cash of approximately $115.6 million and total liquidity of $165 million, including undrawn credit facilities [3][14]. - Cash at the end of the period increased to $115,648 thousand, up from $360 thousand at the end of September 2024, showing a substantial improvement in liquidity [31]. - Net cash used in operating activities for the nine months ended September 2025 was $31,496 thousand, slightly higher than $29,750 thousand in the prior year [31]. - Cash provided by financing activities increased to $143,475 thousand in 2025, compared to $23,386 thousand in 2024, reflecting strong capital raising efforts [31]. - The company raised $85,165 thousand from a private placement with Korea Zinc and $42,000 thousand from registered direct offerings during the nine months ended September 2025 [31]. Expenses - Exploration and evaluation expenses decreased to $9.6 million in Q3 2025 from $11.8 million in Q3 2024, attributed to reduced environmental studies and mining costs [16]. - General and administrative expenses rose to $45.7 million in Q3 2025, up from $8.1 million in Q3 2024, primarily due to higher share-based compensation and consulting fees [17]. - General and administrative expenses for the three months ended September 30, 2025, were $45,726,000, compared to $8,149,000 in Q3 2024, reflecting a substantial increase of 461% [26]. - Share-based compensation and expenses settled with equity rose to $62,265 thousand from $19,129 thousand, indicating increased equity compensation [31]. - The company incurred $38,056 thousand in Nauru and Tonga warrant costs, a new expense category for the current reporting period [31]. Royalty and Economic Studies - TMC's royalty liability increased by $131 million to $145 million following the release of the two economic studies [18]. - TMC's two economic studies revealed a combined Net Present Value (NPV) of $23.6 billion, with a world-first Pre-Feasibility Study showing an NPV of $5.5 billion and 51 million tonnes of probable mineral reserves [8]. - The change in fair value of royalty liability was reported at $131,000,000 for both the three and nine months ended September 30, 2025, with no comparable figure in 2024 [26]. Production and Regulatory Compliance - The company expects to commence commercial production in Q4 2027, pending the acquisition of necessary permits [8]. - NOAA confirmed full compliance of TMC USA's exploration license applications, marking a significant step in the regulatory process [10]. - TMC successfully produced battery-grade manganese sulfate from nodule-derived manganese silicate during bench-scale trials, indicating progress in developing domestic manganese sources [9]. - All four metals contained in TMC's nodules are now recognized on the U.S. Critical Minerals List, with copper contributing 17% of expected life-of-mine revenue [13]. Shareholder Information - The company issued 19,623,376 shares and warrants to Korea Zinc, netting $71,686,000 in the nine months ended September 30, 2025 [30]. - The total number of common shares outstanding increased to 408,855,173 as of September 30, 2025, up from 324,131,896 shares a year earlier, representing a growth of 26% [30].

Exploration and Resource Development - The company has submitted applications for exploration licenses covering 187,017 square kilometers and a commercial recovery permit for 25,160 square kilometers, estimated to hold approximately 1.639 billion wet tonnes of mineral resources, including 15.5 million tonnes of nickel, 12.8 million tonnes of copper, 2.0 million tonnes of cobalt, and 345 million tonnes of manganese [121]. - The company is in the evaluation stage following the release of the S-K 1300 NORI Area D Technical Report, declaring mining reserves for a seafloor polymetallic nodule project [118]. - The company is focused on developing a commercial offshore nodule collection system and onshore technology to process collected polymetallic nodules into various metal products [125]. - The company aims to build a "metal commons" for sustainable recovery and reuse of metals to meet rising demand [117]. - The company is working to assess the environmental and social impacts of offshore nodule collection as part of its commercial production strategy [125]. - The pre-feasibility study for NORI Area D indicates that development is technically and economically viable, but further project planning is required before a development decision can be made [230]. - Approximately 97% of the NORI Area D resource is categorized as measured or indicated, while only about 6% of the resources in NORI (Areas A to C) and TOML Properties are similarly categorized [233]. - The initial assessment of the NORI and TOML Properties suggests potential viability of mineral resources, but economic viability has not yet been demonstrated [230]. - The company cautions that mineral resources do not have demonstrated economic value and that significant exploration is needed to upgrade inferred resources [233]. Financial Performance - The company reported a net loss of $184.4 million for Q3 2025, compared to a net loss of $20.5 million in Q3 2024, representing a 799% increase [149][163]. - The net loss before tax for the first nine months of 2025 was $279.3 million, compared to a net loss of $65.9 million in the same period of 2024, indicating a significant increase in losses [172]. - General and administrative expenses surged by 461% to $45.7 million in Q3 2025, driven by a $35 million increase in share-based compensation [161][166]. - General and administrative expenses rose to $65.7 million in the first nine months of 2025, up from $22.6 million in the same period of 2024, reflecting an increase of $43.1 million [174]. - The fair value of the royalty liability increased by $131 million in Q3 2025, totaling $145 million for NORI Areas A to D [161][169]. - The fair value of the royalty liability increased to $145 million as of September 30, 2025, an increase of $131 million in the first nine months of 2025 [178]. - The company has an accumulated deficit of approximately $910.9 million from inception through September 30, 2025 [149]. - The company has not generated any revenue to date and expects to do so only after receiving a commercial recovery permit [151]. - The company is currently a pre-revenue entity and does not anticipate earning revenues until it receives an exploitation contract or commercial recovery permit [147]. Financing and Capital Management - The company plans to seek additional financing to support ongoing operations, which may include public or private equity, debt financings, or other sources [184]. - The company entered into a 2024 Credit Facility allowing borrowing up to $20 million, later increased to $44 million, with a maturity date extended to June 30, 2026 [192][193][196]. - The company raised gross proceeds of $14.9 million from a registered direct offering of 17.5 million common shares at $1.00 per share, with net proceeds of $14.2 million after expenses [196]. - A subsequent offering in May 2025 raised gross proceeds of $37 million from the sale of 12.33 million common shares at $3.00 per share [197]. - The company received $85.2 million from Korea Zinc for the issuance of 19.62 million common shares and accompanying warrants, with a purchase price of $4.34 per share [198]. - As of September 30, 2025, the company had cash on hand of $115.6 million, which is expected to be sufficient to meet obligations for the next twelve months [182]. - For the nine months ended September 30, 2025, net cash used in operating activities was $31.5 million, primarily due to payroll costs and environmental work [201]. - Net cash provided by financing activities for the same period was $143.5 million, driven by proceeds from various offerings and loans [204]. - The company recorded a net cash generated from investing activities of $0.2 million for the nine months ended September 30, 2025 [203]. Regulatory and Compliance - The company maintains two ISA exploration contracts in the CCZ while pursuing commercial production through the U.S. regulatory pathway under DSHMRA [123]. - The company received notice of full compliance from NOAA on its exploration applications, confirming priority rights over both exploration areas [129]. - The certification process for exploration licenses and commercial recovery permits is ongoing, with no assurance of favorable outcomes or timely issuance [241]. - The timing of NOAA's review and decision on the company's applications remains uncertain and is outside the company's control [147]. - The company is currently analyzing the complex regulatory system under DSHMRA to determine its impact on development plans and potential commercial operations [242]. Strategic Partnerships and Collaborations - The company has established key strategic partnerships with Allseas, PAMCO, Korea Zinc, and Glencore to advance its commercial production strategy [124]. - A strategic alliance with Allseas was established on March 29, 2019, for the collection and transportation of 200 million metric tonnes of polymetallic nodules on a cost-plus 50% profit basis [211]. - The pilot nodule collection system trials in NORI Area D were successfully completed in November 2022, leading to further development of the commercial system [212]. - The company entered into a Working Capital Loan Agreement with Allseas Investments for $5 million on September 10, 2024, which was later increased to $7.5 million [220]. - As of September 30, 2025, the company made payments to Allseas totaling $10 million in cash and 10.85 million Common Shares valued at $1.00 per share [213][215]. Market and Risk Factors - The company expects to face increased credit risk once commercial production begins due to a larger customer base [240]. - The company is exposed to various market risks, including interest rate changes, inflation, and foreign currency translation [237]. - The current investment strategy involves placing excess cash in secure, highly liquid interest-bearing investments, with a focus on maintaining availability for operational needs [239].

Core Insights - TMC the metals company Inc. has reported significant progress in its development of critical metals, with a focus on deep-sea polymetallic nodules, which are essential for energy, defense, and manufacturing sectors [1][3] - The company has completed a Pre-Feasibility Study and Initial Assessment, marking a major milestone and positioning itself strongly amid increasing public and private investments in critical minerals [3][4] - TMC's financial position is robust, with $121 million in cash and total liquidity of $165 million, indicating no immediate need for public market financing [3][15] Financial Highlights - For Q3 2025, TMC reported a net loss of approximately $184.5 million, or $0.46 per share, compared to a net loss of $20.5 million, or $0.06 per share, in Q3 2024 [9][16] - The company had cash reserves of approximately $115.6 million as of September 30, 2025, and used $11.5 million in operations during the quarter [9][15] - Exploration and evaluation expenses decreased to $9.6 million from $11.8 million year-over-year, attributed to reduced environmental study costs [17] Operational Highlights - TMC announced two economic studies with a combined Net Present Value (NPV) of $23.6 billion, demonstrating the economic viability of its NORI-D Project [7] - The company declared a world-first of 51 million tonnes of probable mineral reserves for its polymetallic nodule project [7] - TMC successfully produced battery-grade manganese sulfate from nodule-derived manganese silicate, showcasing its capability to meet modern industry demands [5][8] Industry Developments - The U.S. government is showing support for seabed mineral exploration, with NOAA's proposed rule under White House review to streamline the permitting process [4][12] - All four metals contained in TMC's nodules have been added to the U.S. Critical Minerals List, enhancing their strategic importance [14] - The U.S. and Japan are collaborating on developing rare earths from seabed minerals, indicating a strategic move towards leading in the deep-sea minerals industry [13]

Core Viewpoint - TMC the metals company Inc. is set to provide an update on its third quarter 2025 financial results and recent corporate developments during a conference call scheduled for November 13, 2025 [1] Group 1: Conference Call Details - The conference call will take place on Thursday, November 13, 2025, at 4:30 p.m. ET [2] - Participants can join via audio-only dial-in or a virtual webcast, with a replay available approximately two hours after the event [2] Group 2: Company Overview - The Metals Company focuses on developing lower-impact critical metals sourced from seafloor polymetallic nodules, aiming to supply essential metals for energy, defense, manufacturing, and infrastructure [3] - The company is committed to creating a sustainable metal commons through the tracing, recovering, and recycling of metals, ensuring a net positive environmental impact compared to traditional production methods [3] - Over a decade of research has been conducted on the environmental and social impacts of offshore nodule collection and onshore processing [3]

Core Insights - The Metals Company (TMC) has seen significant stock volatility, with a 36.1% decline following a 50% increase earlier in October, despite being up over 500% year-to-date [1][9] - The company focuses on extracting and refining polymetallic nodules from the Pacific Ocean seafloor, which are rich in manganese, cobalt, nickel, and copper, essential for electric vehicle batteries [2][3][4] - TMC has not yet commenced commercial operations and lacks the necessary permits for collection and processing, making it a highly speculative investment [5][6] Company Overview - The Metals Company is engaged in the collection and processing of metals from the seafloor, specifically targeting polymetallic nodules found in the Clarion-Clipperton Zone (CCZ) [2][4] - The CCZ is located in international waters and is regulated by the International Seabed Authority (ISA), where TMC holds exploration contracts but no collection contracts [6] Market Context - The recent surge in TMC's stock was influenced by China's tightening of export controls on critical metals, raising concerns about global supply chain disruptions [8][9] - The U.S. and other economies view copper, cobalt, nickel, and manganese as critical metals, with China being a major producer [7] Future Prospects - There is potential for increased regulatory sympathy towards new sources of critical metals due to geopolitical tensions, particularly with China [10] - TMC faces significant operational challenges, including a lack of excavation equipment and processing facilities, with commercial production not expected until Q4 2027 and full-scale operations by 2043 [11] - Short-term stock recovery appears unlikely unless there is a significant disruption in the supply of metals TMC plans to mine [12]

Core Insights - The Metals Company (TMC) has seen a significant stock increase of 520% year to date, positioning it among the top three mining stocks of the year [1] Company Overview - TMC is focused on deep-sea mining, specifically in the Clarion Clipperton Zone of the Pacific Ocean, to extract polymetallic nodules containing cobalt, copper, nickel, and manganese [2] - The company aims to process these nodules into battery-grade base metals for applications in electric vehicle batteries and power generation, with a focus on recyclability [2] Current Status and Challenges - TMC is currently in the exploration phase and has not yet generated revenue, lacking exploitation contracts from the International Seabed Authority (ISA) for commercial collection of nodules [3] - The ISA has not finalized a mining code, leaving TMC and similar companies in a state of uncertainty regarding operational permissions [3][6] Recent Developments - An executive order signed by President Trump in April 2025 aims to expedite permissions for deep-sea mining, providing TMC with an opportunity to apply for exploration licenses and a commercial recovery permit under the Deep Seabed Hard Mineral Resources Act (DSHMRA) [5] - This executive order has contributed to a significant rise in TMC's stock price, which at one point increased by over 800% in 2025 [7] Financial Considerations - TMC requires substantial funding to develop and commercialize its operations, with only $116 million in cash as of June 30, raising concerns about its market capitalization of $3.6 billion [8]

Group 1 - TMC the metals company Inc. experienced a significant decline of 10.10% on Wednesday, closing at $9.61, as investors engaged in profit-taking following a substantial rise earlier in the month [1][3] - The stock price of TMC surged by 78% in early October, reaching an intra-day high of $11.35, but a pullback resulted in a month-to-date gain of 51% [2] - TMC is a Canada-based deep-sea mining company that has filed intentions with the US government to mine in the international seabed through its US subsidiary, which has drawn criticism from environmental advocates and members of the International Seabed Authority [2][3]

Core Thesis - TMC The Metals Company has transitioned from a speculative venture to a credible operation, with its Clarion-Clipperton Zone (CCZ) project expected to commence production by 2026, supported by successful pilot initiatives and environmental assessments [3][4] - The company has completed pilot collection campaigns and enhanced processing technology, securing strategic funding for the next phase of development [3][5] Financial Performance - TMC reported minimal revenue in 2023 and 2024, focusing on research and pilot collection, but projections indicate potential annual revenues of $1–1.5 billion once full-scale production begins [4][9] - The stock is currently trading at approximately 8–9x forward sales, a significant increase from under 1x at the beginning of 2025, reflecting optimism regarding commercialization and the scarcity of scalable, ESG-aligned metal sources [5][9] Growth Catalysts - The global demand for electric vehicle (EV) metals is driving interest in TMC's seabed nodules, which are rich in nickel, cobalt, copper, and manganese [12] - The International Seabed Authority (ISA) is nearing the finalization of a mining code that could approve TMC's commercial license, facilitating production [12] - TMC claims that collecting seabed nodules results in up to 70% lower carbon emissions compared to terrestrial mining, providing both an ESG benefit and a cost advantage [12] - The company is pursuing long-term supply contracts with battery and EV manufacturers to ensure revenue visibility as production commences [12] - Recent capital raises and debt financing have extended TMC's cash runway, supporting enhancements to mining systems and processing capacity through 2026 [12] Market Position - TMC has evolved from a speculative penny stock into a high-stakes investment opportunity, with rapidly improving fundamentals [8][10] - If TMC successfully initiates production by 2026 and achieves projected revenues, the current stock price could be justified or seen as conservative in the long term [9][10]

Core Viewpoint - The rare earth sector in the U.S. stock market continues to show strong performance, with significant gains in various companies' stock prices [1] Company Performance - UAMY experienced a rise of over 16% in its stock price [1] - CRML saw an increase of more than 12% [1] - AREC and USAR both rose by over 7% [1] - MP and TMC had gains exceeding 2% [1]