TMC the metal company (TMC) - 2025 Q3 - Quarterly Results

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].