Should You Buy The Metals Company Stock While It's Under $10?

Core Insights - The Metals Company (TMC) aims to extract battery metals from the Pacific seabed using a vacuum method, which could be more efficient and environmentally friendly than traditional mining [1][2] - TMC projects a potential commercialization start date in late 2027, making its current stock price under $10 intriguing for investors [4] - The success of TMC's plans hinges on securing sufficient capital, obtaining a commercial license, and overcoming technical uncertainties [5][7][9] Financial Overview - TMC has approximately $165 million in total liquidity as of the end of the third quarter, but ongoing cash burn raises concerns about its sustainability [5] - The current market capitalization of TMC is $3 billion, with a stock price of $6.85, reflecting a 52-week range of $0.72 to $11.35 [8] Regulatory and Technical Challenges - TMC requires a finalized rulebook for deep-sea mining from the International Seabed Authority (ISA) to obtain a commercial license, which is still under development [7] - The technology TMC plans to use has not been proven at scale, leading to potential technical and engineering challenges even if a license is granted [9] Investment Considerations - The current share price of TMC may be justified given the uncertainties surrounding deep-sea mining, with aggressive investors possibly considering long-term investments [10] - More conservative investors might prefer investing in metals exchange-traded funds (ETFs) instead of TMC shares [10]