Group 1 - The Metals Company held its Q2 2025 earnings conference call on August 14, 2025, featuring key participants including the CFO and CEO [1][2]. - The CFO, Craig Shesky, indicated that the call would include forward-looking statements based on management's beliefs and assumptions, which are subject to various risks and uncertainties [3][4]. - The company emphasized that actual results may differ materially from anticipated outcomes and noted that they do not undertake any obligation to update forward-looking statements unless required by law [4]. Group 2 - The conference call was structured to provide a corporate update, with the CEO, Gerard Barron, taking over to present further insights after the CFO's introduction [5].

Financial Data and Key Metrics Changes - The company reported a net loss of $74.3 million or $0.20 per share for Q2 2025, compared to a net loss of $20.2 million or $0.06 per share for the same period in 2024 [32] - Free cash flow for Q2 2025 was negative $10.7 million, an improvement from negative $12.2 million in Q2 2024 [33] - The cash balance increased significantly to approximately $120 million by July 4, 2025, following various capital raises [30][34] Business Line Data and Key Metrics Changes - The Pre-Feasibility Study (PFS) indicated a combined project net present value (NPV) of over $23 billion, with a clear capital-efficient path to first production [9][28] - The estimated recoverable nodules for the PFS is 164 million wet tons, with an assumed production start date in Q4 2027 and a life of mine of just over 18 years [21][22] - The revenue mix is expected to be 45% from nickel products, 28% from manganese, 17% from copper, and 9% from cobalt [24] Market Data and Key Metrics Changes - The company has renewed and strengthened agreements with the Republic of Nauru and the Kingdom of Tonga, emphasizing a science-based approach to developing the seabed mining industry [12] - The strategic investment of $85 million from Korea Zinc positions the company to supply refined metals in South Korea and potentially build new facilities in the USA [13] Company Strategy and Development Direction - The company aims to adapt to a capital-light approach while advancing its projects, maintaining a competitive edge in the seabed mining industry [8] - The focus is on achieving regulatory certainty and moving towards first production, with a target date set for Q4 2027 [10][11] - The company plans to build refining capacity in the USA to support its production and contribute to US mineral independence [25][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory environment, noting daily communication with NOAA and a supportive administration [42][43] - The company anticipates good news from regulators and expects to maintain a regular cadence of updates as it progresses through the permitting process [41][44] - There is confidence in the ability to manage normal business risks and supply chain issues, with a strong board and partnerships in place [52] Other Important Information - The company is pursuing funding opportunities from various US government departments for both offshore and onshore components of its operations [66][68] - The anticipated ramp-up in profitability is expected to support significant capital expenditures for onshore refining capacity after production begins [25][27] Q&A Session Summary Question: What work needs to be done to get through the feasibility level and the timeline? - The focus will be on finalizing agreements with Allsys and preparing for the investment decision to order long lead items for production [39] Question: What are the next major steps or milestones regarding permitting under NOAA? - The company expects good news from NOAA and is in daily contact with regulators, anticipating changes to fast-track permitting [41][42] Question: What factors could accelerate or slow down progress towards production? - Management believes there are no significant regulatory hurdles, and the focus will be on managing supply chain issues [52] Question: How will the capital expenditures be split among partners? - The breakdown of capital expenditures is still being finalized, but there is a long-standing assumption of splitting pre-production costs with Allsys [63] Question: Are there funding opportunities available for the offshore side? - The company is actively pursuing funding from various US government programs for both offshore and onshore components [66][68] Question: Could the processing plant development be expedited? - The company could accelerate the development of processing facilities if favorable terms are available from funding agencies [70]

Financial Data and Key Metrics Changes - In Q2 2025, TMC reported a net loss of $74.3 million or $0.20 per share, compared to a net loss of $20.2 million or $0.06 per share in the same period of 2024 [32] - Free cash flow for Q2 2025 was negative $10.7 million, an improvement from negative $12.2 million in Q2 2024 [33] - The company had pro forma cash of approximately $120 million as of June 30, 2025, which includes proceeds from various capital raises [30] Business Line Data and Key Metrics Changes - The Pre-Feasibility Study (PFS) indicated a combined project net present value (NPV) of over $23 billion, with a clear capital-efficient path to first production [9] - The estimated recoverable nodules for the PFS is 164 million wet tons, with an assumed production start date in Q4 2027 [21] - Annual production in steady state is modeled at 10.8 million tons of wet nodules, with expected revenue per dry ton of approximately $600 during steady state production [22][24] Market Data and Key Metrics Changes - The revenue mix is expected to be 45% from nickel products, 28% from manganese, 17% from copper, and 9% from cobalt [24] - The company is positioned in the first quartile of the cost curve, with C1 nickel cash costs just over $1,000 per ton, making it profitable in nearly any nickel price environment [24] Company Strategy and Development Direction - TMC aims to adapt to a capital-light approach while advancing its projects, maintaining a unique position in the seabed mining industry [8] - The company has renewed partnerships with Nauru and Tonga, focusing on a science-based approach to develop the industry sustainably [12] - TMC is exploring funding opportunities from various U.S. government departments to support its projects [41][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory path and the support from the U.S. government, indicating a favorable environment for seabed mining [45][60] - The anticipated ramp-up period post-permitting is expected, with production targeted for Q4 2027 [10] - Management highlighted the importance of securing domestic supply chains and advancing U.S. mineral independence [14] Other Important Information - The company welcomed new board members with extensive experience in energy, finance, and law, enhancing its strategic capabilities [14] - TMC's partnerships with Korea Zinc and other stakeholders are expected to facilitate the development of refining capacity in the U.S. [13][26] Q&A Session Summary Question: What work needs to be done to get through the feasibility level and the timeline? - Management emphasized focusing on final agreements with partners and preparing for the investment decision to meet the Q4 2027 production target [40] Question: What are the next major steps or milestones regarding permitting under NOAA? - Management indicated that the closing of the comment period and expected regulatory changes would facilitate faster permitting [42][44] Question: What main factors could accelerate or slow down progress towards production? - Management noted that government support and regulatory clarity are encouraging, with normal business risks being manageable [52][53] Question: Can you clarify the difference between provisional approval and final approval? - Management explained that provisional approval would provide confidence while the final approval process is completed, which is expected by the end of the year [79][82]

Financial Performance & Projections - The Pre-Feasibility Study (PFS) shows a Net Present Value (NPV) of $5.5 billion [9], while the Initial Assessment (IA) indicates an NPV of $18.1 billion [9] - The PFS estimates a 27% Internal Rate of Return (IRR), and the IA projects a 36% IRR [47, 63] - The PFS anticipates steady-state production of 11 million wet tonnes of nodules per annum from 2031 to 2043 [47] - The PFS projects an EBITDA margin of 43% during steady-state production years, translating to $254 per dry tonne of nodules [56] - The company estimates C1 cash costs of $1,065 per tonne of nickel, including byproduct credits, placing it in the 1st quartile of the nickel cost curve [54] Resource & Production - The PFS focuses on the NORI-D area, with probable reserves of 51 million tonnes [10] and a total resource of 352 million tonnes [47] - The IA covers the TOML and NORI areas (excluding NORI-D), estimating a resource of 1,276 million tonnes [63] - The company anticipates first production in Q4 2027 [15] - The combined PFS and IA cover an estimated resource of 1.6 billion tonnes of nodules [65] Strategic Investments & Partnerships - Korea Zinc made a strategic equity investment of $85.2 million in exchange for 19.6 million common shares at $4.34 per share [25] - The company has a pro forma cash balance of $120.7 million as of June 30, 2025, and total liquidity of $165 million including borrowing capacity [72]

Part I - Financial Information [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the period ended June 30, 2025, reflect its pre-revenue status as an exploration-stage entity, with significant financing activities driving an increase in cash and total assets, and shifting total equity from a deficit to a positive balance, despite a widened net loss due to non-cash warrant expenses [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's balance sheet strengthened significantly compared to December 31, 2024, with cash increasing dramatically to $115.8 million due to financing activities, driving total assets up to $173.7 million and shifting total equity from a deficit to a positive $81.9 million Condensed Consolidated Balance Sheet Highlights (in thousands of US Dollars) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash** | $115,759 | $3,480 | | **Total Current Assets** | $117,278 | $5,331 | | **Total Assets** | $173,694 | $62,998 | | **Total Liabilities** | $91,834 | $80,116 | | **Total Equity** | $81,860 | $(17,118) | [Condensed Consolidated Statements of Loss and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) The company reported a net loss of $74.3 million for Q2 2025 and $94.9 million for the first six months of 2025, a substantial increase from prior-year periods, primarily driven by a one-time, non-cash **$33.1 million** Nauru Warrant cost and a **$16.7 million** non-cash charge for the change in fair value of warrant liability Net Loss Comparison (in thousands of US Dollars) | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Three months ended June 30** | $74,341 | $20,168 | | **Six months ended June 30** | $94,929 | $45,362 | - Key drivers for the increased net loss in 2025 were a non-cash Nauru Warrant cost of **$33.1 million** and a change in fair value of warrant liability of **$16.7 million** for the six-month period[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, the company's cash position increased by $112.3 million, primarily due to **$132.1 million** in net cash provided by financing activities, including proceeds from the Korea Zinc private placement and registered direct offerings, while net cash used in operating activities decreased to **$20.0 million** Cash Flow Summary for Six Months Ended June 30 (in thousands of US Dollars) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(20,009) | $(23,966) | | **Net cash generated from (used in) investing activities** | $226 | $(415) | | **Net cash provided by financing activities** | $132,069 | $17,712 | | **Increase (Decrease) in cash** | $112,286 | $(6,669) | - Major financing inflows in H1 2025 included **$85.2 million** from the Korea Zinc Private Placement and **$35.0 million** from Registered Direct Offerings[23](index=23&type=chunk) [Notes to Interim Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's focus on deep-sea mineral exploration and its recent strategic shift to pursue commercialization under the U.S. DSHMRA regime, highlighting significant H1 2025 financing activities, a substantial **$33.1 million** non-cash expense from Nauru warrants, and updates on ongoing legal proceedings - In April 2025, the company's subsidiary, TMC USA, submitted applications to the U.S. National Oceanic and Atmospheric Administration (NOAA) for exploration licenses and a commercial recovery permit under the Deep Seabed Hard Mineral Resources Act (DSHMRA)[26](index=26&type=chunk) - The company secured significant funding in Q2 2025, including **$85.2 million** from Korea Zinc and gross proceeds of **$37 million** from a registered direct offering[54](index=54&type=chunk)[56](index=56&type=chunk) - A revised sponsorship agreement with the Republic of Nauru led to the issuance of 9.1 million warrants, resulting in a non-cash expense of **$33.1 million**[75](index=75&type=chunk)[76](index=76&type=chunk) - A shareholder class action (Caper v. TMC) was dismissed with prejudice in July 2025, while other legal proceedings remain ongoing[95](index=95&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strategic shift towards the U.S. regulatory pathway (DSHMRA) for commercial production, highlighted by its April 2025 application submissions to NOAA, significant Q2 2025 financing deals that improved liquidity, and an increased net loss primarily due to non-cash warrant-related expenses, while confirming sufficient liquidity for the next twelve months but acknowledging the need for future financing [Overview and Recent Developments](index=33&type=section&id=Overview%20and%20Recent%20Developments) The company is focused on becoming a commercial producer of deep-sea polymetallic nodules, marked by the submission of the first-ever application for a commercial recovery permit under the U.S. DSHMRA in Q2 2025, significant capital raises including an **$85.2 million** strategic investment from Korea Zinc, and the post-quarter publication of a Pre-Feasibility Study declaring the first mineral reserves for a polymetallic nodule project - Submitted the first-ever application for a commercial recovery permit under the U.S. Deep Seabed Hard Mineral Resources Act (DSHMRA) in April 2025[115](index=115&type=chunk) - Secured an **$85.2 million** strategic investment from Korea Zinc and raised **$37 million** in a registered direct offering[118](index=118&type=chunk)[120](index=120&type=chunk) - Post-quarter end, on August 4, 2025, the company published a Pre-Feasibility Study (PFS) for NORI Area D, which included the first declaration of Mineral Reserves for a polymetallic nodule project[102](index=102&type=chunk)[122](index=122&type=chunk) [Regulatory Updates](index=41&type=section&id=Regulatory%20Updates) The company's primary regulatory focus is the U.S. DSHMRA, with its April 2025 applications for exploration licenses and a commercial recovery permit now under NOAA review, which has confirmed the exploration applications are in full compliance, initiating the certification process, while existing ISA exploration contracts are maintained - The company's primary regulatory focus is now the U.S. DSHMRA, which provides a domestic legal framework for U.S. citizens to conduct deep-sea mining[126](index=126&type=chunk) - In May 2025, NOAA determined the company's exploration license applications were in substantial compliance, and in July 2025, confirmed they were fully compliant, beginning the certification process[137](index=137&type=chunk) [Results of Operations](index=48&type=section&id=Results%20of%20Operations) The net loss for Q2 2025 was **$74.3 million**, and **$94.9 million** for the first six months, a significant increase primarily driven by non-cash items: a **$33.1 million** Nauru Warrant cost and a **$16.2 million** change in the fair value of warrant liability, while exploration expenses decreased by **34%** and G&A expenses increased by **38%** Comparison of Operating Results (in thousands of US Dollars) | Item | Six months ended June 30, 2025 | Six months ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Exploration and evaluation expenses | $20,011 | $30,526 | (34)% | | General and administrative expenses | $19,979 | $14,451 | 38% | | **Net Loss for the period** | **$94,929** | **$45,362** | **109%** | - The significant increase in net loss was mainly due to a **$33.1 million** non-recurring, non-cash Nauru Warrant cost and a **$16.7 million** non-cash charge for the change in fair value of warrant liability[160](index=160&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position improved dramatically, with cash on hand increasing to **$115.8 million** at June 30, 2025, due to **$132.1 million** in net cash from financing activities in H1 2025, primarily from the Korea Zinc investment and registered direct offerings, and management believes it has sufficient funds for the next twelve months but will require additional financing for long-term operations - As of June 30, 2025, the company had cash on hand of **$115.8 million**[170](index=170&type=chunk) - Financing activities in H1 2025 provided **$132.1 million** in net cash, primarily from the Korea Zinc investment and registered direct offerings[186](index=186&type=chunk)[193](index=193&type=chunk) - Management believes it has sufficient funds for the next twelve months but will need additional financing for continued operations over time[174](index=174&type=chunk)[175](index=175&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's most significant market risk is regulatory, stemming from the uncertainty of obtaining a commercial recovery permit from NOAA under the DSHMRA, a framework not yet tested for full-scale commercial projects, while other risks like interest rate and credit risk are currently considered low - The primary risk is regulatory uncertainty related to the U.S. DSHMRA regime, as NOAA has not previously issued a commercial recovery permit, and there is no assurance of a favorable or timely outcome for the company's application[228](index=228&type=chunk) - Interest rate and credit risks are considered low. Excess cash is invested in investment-grade short-term deposits, and receivables are primarily from the Canadian government[226](index=226&type=chunk)[227](index=227&type=chunk) [Item 4. Controls and Procedures](index=70&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of June 30, 2025, due to a previously disclosed material weakness in internal controls over financial reporting concerning the accounting for significant non-routine transactions, which persists despite implemented remediation efforts as the new controls require a longer period of operation and testing to be deemed effective - Disclosure controls and procedures were concluded to be not effective as of June 30, 2025[232](index=232&type=chunk) - The ineffectiveness is due to a previously identified material weakness in internal controls over accounting for significant non-routine transactions[233](index=233&type=chunk) - Remediation efforts are underway, but the material weakness persists as the new controls require a longer period of operation and testing to be deemed effective[235](index=235&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company provides an update on three key legal cases: a shareholder class action, *Caper v. TMC*, was dismissed with prejudice in July 2025 and is now closed; a lawsuit from 2021 private placement investors, *Atalaya v. TMC*, is proceeding to the discovery phase; and another shareholder class action, *Lin v. TMC*, related to a prior financial restatement, is ongoing with a motion to dismiss pending - The shareholder class action *Caper v. TMC* was dismissed with prejudice on July 9, 2025, and is now considered closed[243](index=243&type=chunk) - The *Atalaya* lawsuit, filed by investors in the 2021 private placement, is ongoing and has moved into the discovery phase[244](index=244&type=chunk) - The *Lin v. TMC* class action, concerning a financial restatement, is also ongoing. The company's motion to dismiss the Second Amended Complaint was filed on August 6, 2025[245](index=245&type=chunk) [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) The company states there are no material changes to its previously disclosed risk factors but emphasizes its reliance on third-party technical studies, which are based on assumptions that may prove inaccurate, and underscores that mineral resource and reserve estimates are inherently uncertain and subject to change, with no guarantee of profitable recovery - The company relies on third-party analyses for its technical reports, and inaccuracies in these reports could adversely affect its objectives[247](index=247&type=chunk) - Mineral resource and reserve estimates are inherently uncertain and may not be realized. There is no assurance that resources can be profitably collected and processed[248](index=248&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the three months ended June 30, 2025, the company did not repurchase any of its own equity securities - No repurchases of the company's equity securities were made during the second quarter of 2025[250](index=250&type=chunk) [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) The company reports that none of its directors or officers adopted, modified, or terminated a Rule 10b5-1 trading plan or any non-Rule 10b5-1 trading arrangement during the second quarter of 2025 - No directors or officers adopted, modified, or terminated any Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[253](index=253&type=chunk)

[The Metals Company Q2 2025 Corporate Update](index=1&type=section&id=The%20Metals%20Company%20Q2%202025%20Corporate%20Update) [Executive Summary & Key Developments](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Developments) The company published economic studies showing a combined $23.6 billion NPV and secured $85.2 million in strategic investment Q2 2025 Financial Highlights | Metric | Value (USD) | | :--- | :--- | | Cash at June 30, 2025 | $115.8 million | | Cash Used in Operations | $10.6 million | | Operating Loss | $22.0 million | | Net Loss | $74.3 million | | Net Loss Per Share | $0.20 | - Published two S-K 1300-compliant technical reports with a total combined **Net Present Value (NPV) of $23.6 billion**, demonstrating potential economic viability and scalability of its projects[4](index=4&type=chunk) - The Pre-Feasibility Study (PFS) for the NORI-D area shows an **NPV of $5.5 billion** and marks a world-first declaration of **51 million tonnes of probable mineral reserves** for a polymetallic nodule project[7](index=7&type=chunk) - A new Initial Assessment for the remaining NORI and TOML areas estimates an **NPV of $18.1 billion** with a total recoverable resource of **670 million tonnes**[11](index=11&type=chunk) - Received notice of full compliance from the National Oceanic and Atmospheric Administration (NOAA) for its U.S. exploration applications, targeting a production start in **Q4 2027**[6](index=6&type=chunk)[12](index=12&type=chunk) - Secured a strategic equity investment from Korea Zinc, resulting in gross proceeds of **$85.2 million**[11](index=11&type=chunk)[17](index=17&type=chunk) [Operational Highlights](index=3&type=section&id=Operational%20Highlights) The company advanced its U.S. regulatory strategy, updated sponsorship agreements, and strengthened its board and shareholder base - TMC USA's exploration applications received full compliance notice from NOAA and entered the certification stage, which is expected to take approximately **100 days**[13](index=13&type=chunk) - Signed a revised Sponsorship Agreement with Nauru, ensuring Nauru receives continuity benefits if a TMC subsidiary begins commercial recovery under the **U.S. regulatory regime**[14](index=14&type=chunk) - Announced a revised Sponsorship Agreement with Tonga, providing similar continuity benefits to the Kingdom of Tonga under a potential **U.S. authorization**[15](index=15&type=chunk) - Appointed Michael Hess and Alex Spiro to its Board of Directors to enhance its operational, investment, legal, and capital markets expertise in line with its **U.S. strategy**[16](index=16&type=chunk) - Korea Zinc's strategic investment of **$85.2 million** made it one of TMC's largest shareholders, with approximately **5% ownership** of outstanding common shares[17](index=17&type=chunk) [Industry Update](index=4&type=section&id=Industry%20Update) Regulatory and industry developments favored a U.S. focus, with NOAA proposing streamlined rules while the ISA failed to finalize its Mining Code - NOAA published draft revisions to its deep seabed mining regulations, proposing a **consolidated review process** for simultaneous issuance of exploration licenses and commercial recovery permits[18](index=18&type=chunk) - The Financial Times reported that Lockheed Martin is seeing **renewed interest** in developing its seabed exploration contract areas, citing the Trump administration's focus on critical minerals[19](index=19&type=chunk) - The International Seabed Authority (ISA) concluded its 30th session **without delivering a Mining Code**, missing another deadline[20](index=20&type=chunk) - Leaders from Nauru met with the U.S. National Security Council alongside TMC to discuss partnerships for **critical mineral independence**[21](index=21&type=chunk) - The U.S. State Department announced discussions with the Cook Islands to support research for **responsible seabed exploration and development**[22](index=22&type=chunk) [Financial Performance](index=6&type=section&id=Financial%20Performance) The company reported a higher net loss due to non-recurring charges but ended the quarter with a strong cash position of $115.8 million [Financial Results Overview (Narrative)](index=6&type=section&id=Financial%20Results%20Overview%20(Narrative)) Q2 2025 net loss widened to $74.3 million, driven by non-recurring warrant charges, while the company maintained a sufficient cash balance - As of June 30, 2025, the company held approximately **$115.8 million in cash**, which is believed to be sufficient to meet working capital and capital expenditure needs for at least the next twelve months[23](index=23&type=chunk) Q2 2025 vs Q2 2024 Financial Comparison | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Operating Loss | $22.0 million | $20.3 million | | Net Loss | $74.3 million | $20.2 million | | Net Loss per Share | $0.20 | $0.06 | - The significant increase in net loss was primarily due to a **$33 million non-recurring charge** for warrants issued to Nauru and a **$16.2 million charge** from the increased fair value of warrant liability[26](index=26&type=chunk) - Exploration expenses **decreased from $12.4 million to $10.5 million YoY**, while general and administrative expenses **increased from $7.9 million to $11.5 million YoY**[24](index=24&type=chunk)[25](index=25&type=chunk) [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Financial statements reflect a strengthened balance sheet with increased cash and positive equity, despite a quarterly net loss Condensed Balance Sheet (in thousands USD) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$173,694** | **$62,998** | | Cash | $115,759 | $3,480 | | **Total Liabilities** | **$91,834** | **$80,116** | | Warrants liability | $17,582 | $912 | | **Total Equity** | **$81,860** | **($17,118)** | Condensed Statement of Loss (in thousands USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Operating Loss | $21,975 | $20,295 | | Net Loss | $74,341 | $20,168 | | Net Loss per Share | $0.20 | $0.06 | Condensed Statement of Cash Flows (Six Months Ended June 30, in thousands USD) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($20,009) | ($23,966) | | Net Cash from (Used in) Investing Activities | $226 | ($415) | | Net Cash Provided by Financing Activities | $132,069 | $17,712 | | **Increase (Decrease) in Cash** | **$112,286** | **($6,669)** |

Core Insights - TMC the metals company Inc. reported significant progress in its NORI-D Project, including a world-first declaration of mineral reserves and a combined Net Present Value (NPV) of $23.6 billion from two economic studies [2][5][7] - The company aims to commence commercial production from the NORI-D area in Q4 2027, contingent on receiving necessary permits [6][8] Financial Highlights - As of June 30, 2025, TMC held approximately $115.8 million in cash, with an operating loss of $22 million and a net loss of $74.3 million for the quarter [6][20][19] - The net loss per share for the quarter was $0.20, compared to $0.06 for the same period in 2024 [20][31] - Exploration and evaluation expenses decreased to $10.5 million from $12.4 million year-over-year, while general and administrative expenses increased to $11.5 million from $7.9 million [20][21] Operational Developments - TMC USA received notice of full compliance from NOAA regarding its exploration license applications, confirming priority rights over exploration areas [6][8] - The company has renewed sponsorship agreements with Nauru and Tonga, ensuring continued financial benefits and community programs [9][10] Strategic Investments - A strategic equity investment from Korea Zinc resulted in gross proceeds of $85.2 million, enhancing TMC's financial position and strategic partnerships [12][19] - The investment includes a three-year warrant for additional shares, indicating strong confidence from Korea Zinc in TMC's potential [12] Industry Context - NOAA proposed revisions to regulations under the Deep Seabed Hard Mineral Resources Act, which could streamline the permitting process for seabed mining [13] - The International Seabed Authority has not yet delivered a Mining Code, delaying regulatory clarity for deep-sea mining operations [16] Future Outlook - TMC projects an average annual production rate of 10.8 million tonnes of wet nodules from the NORI-D area, with a life of mine expected to last 18 years [6][7] - The company anticipates a projected after-tax Internal Rate of Return (IRR) of 27% for the NORI-D Project and 36% for the broader resource areas [6][20]

Core Viewpoint - TMC The Metals Company has experienced a significant stock price increase of 378% year to date, but recent trading has seen a pullback due to U.S.-China trade negotiations and profit-taking by investors [1][5]. Group 1: Stock Performance - TMC stock declined by 10% in July, contrasting with a 2.2% rise in the S&P 500 and a 3.7% increase in the Nasdaq Composite [1]. - The stock continued to slide in August, down approximately 10% as investors reduced exposure amid uncertain trade dynamics [5]. - Despite recent sell-offs, TMC's share price remains up roughly 378% year to date [5]. Group 2: Trade Negotiations and Market Dynamics - Developments in U.S.-China trade negotiations, including the lifting of export restrictions on high-end AI chips, have influenced TMC's stock performance [3]. - The Trump administration's concessions in technology exports aim to secure long-term access to China's rare earth mineral supply, which is strategically important for TMC [4]. - The recent pullback in TMC's stock follows a massive valuation run-up earlier in the year, reflecting investor sentiment regarding trade negotiations [2][4]. Group 3: Company Operations and Market Capitalization - TMC currently has a market capitalization of approximately $1.9 billion and remains in a pre-revenue state, needing key regulatory approvals to commence commercial seabed mining operations [6]. - An executive order from President Trump to expedite permitting reviews for seabed mining is seen as a positive development for TMC [7]. - Increased government support for domestic rare earth mining projects is expected to facilitate TMC's operational launch and scaling [6].

Core Viewpoint - TMC The Metals Company has experienced a significant stock price increase of approximately 368% year to date, despite being considered a risky investment [1][2][6] Group 1: Company Performance - TMC's stock has surged due to expectations of regulatory changes and political dynamics that may accelerate its operational deployment and growth [2][4] - The company is currently in a pre-revenue state, indicating high investment risk, but there are favorable dynamics that could lead to substantial price increases [4][6] Group 2: Regulatory Environment - An executive order signed by President Trump aims to expedite permitting for seabed mining operations, which TMC has responded to by submitting several regulatory applications [5] - The potential for seabed mining is seen as crucial for enhancing the U.S. ability to source rare earth minerals domestically [5] Group 3: Market Capitalization and Speculation - TMC has a market capitalization of approximately $1.9 billion, categorizing it as a relatively small and speculative investment [6] - Despite the high level of risk, there is a belief that TMC's valuation could significantly exceed current levels, driven by geopolitical factors and the importance of rare earth mineral sourcing [6]

Virtual webcast with slides: Register Here The virtual webcast will be available for replay in the 'Investors' tab of the Company's website under 'Investors' > 'Media' > 'Events and Presentations', approximately two hours after the event. The Metals Company is a developer of lower-impact critical metals from seafloor polymetallic nodules, on a dual mission: (1) supply metals for energy, defense, manufacturing and infrastructure with net positive impacts compared to conventional production routes and (2) tra ...