Core Viewpoint - TMC the metals company Inc. has submitted a consolidated application to NOAA for an exploration license and commercial recovery permit for polymetallic nodules in the Clarion Clipperton Zone, marking a significant step in the company's efforts to expand its critical minerals project [1][2][3] Group 1: Application Details - The application covers an area of approximately 65,000 km² for exploration and commercial recovery, an increase from the previous 25,000 km² area applied for in April 2025 [2][6] - The estimated resource includes over 800 million tonnes of nodules containing high-grade nickel, copper, cobalt, and manganese, with a metal grade of approximately 3.2% nickel equivalent and 7% copper equivalent [3][6] Group 2: Scientific and Environmental Basis - The application is supported by extensive prior work, including multi-year environmental baseline studies and resource assessments, as well as data from 27 offshore resource and environmental research cruises [3][4][6] - Newly published peer-reviewed research indicates that biodiversity and sediment plume impacts are confined to the mined area, providing a scientifically grounded basis for scaling commercial operations [4][6] Group 3: Development Approach - The application outlines a phased development approach, starting with recovery activities in areas where nodules and habitats have been characterized, and where test mining has been completed [5][6] - Previous activities include the successful collection of 3,000 tonnes of polymetallic nodules and comprehensive environmental monitoring [5][6] Group 4: Regulatory Context - NOAA has been instrumental in advancing the understanding of deep seabed mining impacts since the 1970s, and the new consolidated application process is expected to reduce permitting timelines for companies with completed exploration programs [6][7] - The application aligns with Executive Order 14285, which aims to enhance the recovery of critical offshore minerals [6]

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]

Core Viewpoint - The Metals Company Inc. welcomes an Executive Order aimed at enhancing the domestic supply of critical minerals from seabed resources, positioning itself to play a significant role in this emerging sector [1][2]. Group 1: Executive Order Details - The Executive Order titled 'Unleashing America's Offshore Critical Minerals and Resources' directs the Commerce Secretary to expedite permitting processes for deep seabed mineral exploration and recovery under the Deep Seabed Hard Mineral Resources Act (DSHMRA) [2][6]. - It instructs the Departments of Defense and Energy to evaluate the use of the National Defense Stockpile for minerals derived from seabed nodules and to explore offtake agreements for these minerals [2][6]. - The order also calls for a joint assessment on the feasibility of an international seabed benefit-sharing mechanism, involving various U.S. government departments and allies [3]. Group 2: Company Positioning and Strategy - The Metals Company USA LLC is strategically positioned to recover polymetallic nodules, which will strengthen U.S. critical mineral supply chains and foster an industrial ecosystem supported by deep seabed minerals [4][6]. - The company has been evaluating U.S. locations for nodule processing since 2019, aiming to reshore critical mineral processing and related industries to the U.S. [4]. - The company plans to apply for licenses and permits under DSHMRA in the second quarter of 2025 and has initiated a pre-application consultation process with NOAA [5][6]. Group 3: Historical Context and Regulatory Framework - The U.S. has a historical precedent in deep-sea nodule collection and processing, with relevant legislation and regulations established since the 1980s [5][10]. - NOAA has developed a comprehensive regulatory framework for deep seabed mining, including environmental impact assessments and stakeholder consultations [10]. - The regulatory approach emphasizes flexibility and science-based decision-making to support emerging industries while safeguarding against environmental harm [10].