Is The Metals Company Stock a Millionaire-Maker?

Company Overview - The Metals Company has seen a significant stock increase of 490% over the past year, with a 437% rise since November 2024, as it aims to lead in deep-sea mining [1][2] - The company operates in the Clarion Clipperton Zone, focusing on mining precious minerals from the ocean floor [3] - It aims to extract polymetallic nodules containing nickel, copper, cobalt, and manganese, which are essential for various industries including energy and national defense [4] Regulatory and Market Position - The Metals Company has aligned with U.S. regulations under the Deep Seabed Hard Mineral Resources Act and NOAA, marking a significant de-risking event after over a decade of stagnation [5] - The Trump administration has shown support for deep-sea mining, with an executive order aimed at expediting permitting processes, positioning The Metals Company as a key player in the critical minerals supply chain [6] Financial Position and Projections - The company is currently pre-revenue and raised $37 million in May and $85.2 million from Korea Zinc in June to improve its capital position [9][10] - It projects to begin production in Q4 2027, expecting to generate approximately $600 per dry ton of nodules, with an EBITDA margin of around 43% [10][11] - Over the life of its projects, The Metals Company anticipates undiscounted revenue of approximately $369 billion and EBITDA exceeding $200 billion [11] Future Outlook - The Metals Company is positioned as a first mover in the deep-sea mineral collection industry, targeting a transition from exploration to commercial production by 2027 [12] - The potential for significant profitability exists, but success hinges on obtaining necessary permits and scaling operations effectively [13]