TMC the metal company (US:TMC)2025-05-14 20:15Exploration and Permitting - The company submitted applications for two exploration licenses and one commercial recovery permit covering a total area of 199,895 square kilometers, estimated to hold approximately 1.635 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 [98][99][109]. - An Executive Order was signed to expedite permitting under the DSHMRA, aiming to create a robust domestic supply for critical minerals derived from seabed resources [110]. - The company has submitted three applications to NOAA, including two for exploration licenses and one for a commercial recovery permit, which are currently under review [118][121]. - NOAA has issued exploration licenses over four areas, with two currently active, but no commercial recovery permits have been issued to date [120][123]. - The company is currently analyzing the complex regulatory system under DSHMRA, which may impact its development plans [208]. - The company has submitted applications to NOAA for commercial recovery permits, which are currently under review and may face delays [207]. Financial Performance - The company reported a net loss of approximately $20.6 million for the three months ended March 31, 2025, a decrease of 18% compared to a net loss of $25.2 million in the same period of 2024 [132][144]. - Exploration and evaluation expenses decreased to $9.5 million in Q1 2025 from $18.1 million in Q1 2024, primarily due to reduced costs in mining and technological development [143][145]. - General and administrative expenses increased to $8.5 million in Q1 2025 from $6.6 million in Q1 2024, mainly due to a rise in share-based compensation [143][146]. - The company has an accumulated deficit of approximately $652.0 million from inception through March 31, 2025 [132]. - The change in fair value of warrants liability increased by 48% during the three months ended March 31, 2025, reflecting a rise in the price of public warrants and the company's shares [143][147]. - The company has not yet generated any revenue from its operations and is in the exploration stage, with significant expenses and operating losses expected for the foreseeable future [151][152]. Financing Activities - The company entered into a credit facility amendment increasing the borrowing limit to $44 million and extending the maturity to June 30, 2026 [105]. - The company announced a registered direct offering for $37 million, selling 12,333,333 common shares at $3.00 per share, with accompanying Class C warrants [112]. - The company sold 3,251,590 Common Shares for gross proceeds of $4.9 million in 2024 under the At-the-Market Equity Distribution Agreement [156]. - On November 14, 2024, the company entered into a securities purchase agreement for the sale of 17,500,000 common shares at $1.00 per share, receiving gross proceeds of $14.9 million [163]. - The company expects to incur significant expenses as it advances its application for exploration licenses and a commercial recovery permit [152]. - The company is seeking additional financing to fund ongoing operations, which may include public or private equity, debt financings, or other sources [153]. - The company has received gross proceeds of $15.9 million from a Registered Direct Offering as of December 31, 2023 [158]. - The company may receive up to approximately $314 million in aggregate gross proceeds from the exercise of various warrants, although there is no assurance that these will be exercised [165]. Operational Developments - In Q1 2025, PAMCO successfully processed 450 tonnes of calcine into 35 tonnes of NiCuCo alloy and 320 tonnes of Mn silicate products, demonstrating the processing capabilities at scale [104]. - The company is focused on developing a commercial offshore nodule collection system and assessing environmental impacts as part of its strategy to initiate commercial production [103]. - The company maintains two ISA exploration contracts in the CCZ while pursuing commercial production through the U.S. regulatory pathway under DSHMRA [101]. - Rutger Bosland joined the company as Chief Innovation and Offshore Technology Officer to lead offshore innovation and scale technologies for commercial production [114]. - The Environmental Impact Statement (EIS) and Pre-Feasibility Study (PFS) are ongoing, with completion expected in the third quarter of 2025 [115]. - The company is working towards a definitive tolling agreement with Allseas in 2025, subject to successful evaluation study outcomes [102]. - The pilot nodule collection system developed by Allseas is expected to have a targeted production capacity of up to 3.0 million tonnes of wet nodules per year [178]. - As of March 31, 2025, the company has made payments totaling $10 million in cash and $10 million in shares to Allseas under the Pilot Mining Test Agreement [179]. Regulatory and Market Risks - The company is evaluating U.S.-based vessel and processing options to comply with DSHMRA requirements, while also working with supply chains in Japan and South Korea [125]. - The company anticipates additional U.S. laws and regulations will apply as development progresses and is analyzing their potential impact on operations [126]. - The company is exposed to various market risks, including interest rate, inflation, and foreign currency translation risks [203]. - The company has not yet commenced commercial production, which may expose it to commodity risks in the future [209]. - The company is pursuing a low-capital expenditure approach for the NORI Area D project, reusing existing production assets [196]. - The company plans to advance its commercial production strategy under the U.S.-based DSHMRA regime [196].