Key Points TMC The Metals Company plans to engage in deep-sea mining for critical minerals. Shares of TMC The Metals Company soared in 2025. There's a strong political interest in bolstering the nation's supply of critical minerals at present. 10 stocks we like better than TMC The Metals Company › When asked to imagine mining operations, most will picture machinery moving around massive holes in the ground. TMC The Metals Company (NASDAQ: TMC) has something else in mind. Committed to deep-sea min ...

Core Insights - The Metals Company (TMC) has seen a significant stock increase of 520% year to date, positioning it among the top three mining stocks of the year [1] Company Overview - TMC is focused on deep-sea mining, specifically in the Clarion Clipperton Zone of the Pacific Ocean, to extract polymetallic nodules containing cobalt, copper, nickel, and manganese [2] - The company aims to process these nodules into battery-grade base metals for applications in electric vehicle batteries and power generation, with a focus on recyclability [2] Current Status and Challenges - TMC is currently in the exploration phase and has not yet generated revenue, lacking exploitation contracts from the International Seabed Authority (ISA) for commercial collection of nodules [3] - The ISA has not finalized a mining code, leaving TMC and similar companies in a state of uncertainty regarding operational permissions [3][6] Recent Developments - An executive order signed by President Trump in April 2025 aims to expedite permissions for deep-sea mining, providing TMC with an opportunity to apply for exploration licenses and a commercial recovery permit under the Deep Seabed Hard Mineral Resources Act (DSHMRA) [5] - This executive order has contributed to a significant rise in TMC's stock price, which at one point increased by over 800% in 2025 [7] Financial Considerations - TMC requires substantial funding to develop and commercialize its operations, with only $116 million in cash as of June 30, raising concerns about its market capitalization of $3.6 billion [8]

Core Thesis - TMC The Metals Company has transitioned from a speculative venture to a credible operation, with its Clarion-Clipperton Zone (CCZ) project expected to commence production by 2026, supported by successful pilot initiatives and environmental assessments [3][4] - The company has completed pilot collection campaigns and enhanced processing technology, securing strategic funding for the next phase of development [3][5] Financial Performance - TMC reported minimal revenue in 2023 and 2024, focusing on research and pilot collection, but projections indicate potential annual revenues of $1–1.5 billion once full-scale production begins [4][9] - The stock is currently trading at approximately 8–9x forward sales, a significant increase from under 1x at the beginning of 2025, reflecting optimism regarding commercialization and the scarcity of scalable, ESG-aligned metal sources [5][9] Growth Catalysts - The global demand for electric vehicle (EV) metals is driving interest in TMC's seabed nodules, which are rich in nickel, cobalt, copper, and manganese [12] - The International Seabed Authority (ISA) is nearing the finalization of a mining code that could approve TMC's commercial license, facilitating production [12] - TMC claims that collecting seabed nodules results in up to 70% lower carbon emissions compared to terrestrial mining, providing both an ESG benefit and a cost advantage [12] - The company is pursuing long-term supply contracts with battery and EV manufacturers to ensure revenue visibility as production commences [12] - Recent capital raises and debt financing have extended TMC's cash runway, supporting enhancements to mining systems and processing capacity through 2026 [12] Market Position - TMC has evolved from a speculative penny stock into a high-stakes investment opportunity, with rapidly improving fundamentals [8][10] - If TMC successfully initiates production by 2026 and achieves projected revenues, the current stock price could be justified or seen as conservative in the long term [9][10]

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]

Core Points - The Kingdom of Tonga and TMC's subsidiary, Tonga Offshore Mining Ltd (TOML), signed a revised Sponsorship Agreement, updating the terms of their 2021 agreement [1][9] - The updated agreement ensures that Tonga will continue to receive financial benefits, training, and community programs while securing continuity benefits upon the commencement of commercial production [2][8] - Tonga has played a leading role in the development of the seafloor minerals industry and is committed to responsible mining practices [4][5] Company and Industry Summary - TMC is a leading developer of critical metals essential for energy, defense, manufacturing, and infrastructure, focusing on lower-impact extraction from seafloor polymetallic nodules [1][10] - The agreement highlights Tonga's commitment to transparency, fairness, and environmental care in seabed mineral activities, aligning with its long-term development goals [4][6] - The International Seabed Authority (ISA) has faced delays in adopting Exploitation Regulations, impacting TOML's ability to proceed with commercial exploitation activities [9]

Core Points - The Government of Nauru and TMC have signed a revised Sponsorship Agreement, updating the terms from 2017, which ensures continued financial benefits and support for community programs in Nauru [1][2][5] - Nauru aims to enhance its economic stability through responsible deep-sea mineral development, guided by scientific research and ecological safeguards [6][7] - The partnership between Nauru and TMC is positioned as a model for other developing states in the deep-sea mining industry, emphasizing sustainable practices and community benefits [3][4][7] Group 1 - The revised Agreement guarantees that Nauru will continue to receive existing financial benefits and community support while ensuring continuity benefits upon the commencement of commercial production by NORI or TMC [2][5] - Nauru has taken a leading role in the deep-sea mining industry, having conducted 22 offshore research campaigns and developed a comprehensive dataset on deep-sea environmental information [3][5] - The President of Nauru highlighted the importance of science-based solutions for climate change and the need for small island nations to participate in the energy transition [3][4] Group 2 - The Agreement stipulates that the majority of financial benefits will be directed into Nauru's Intergenerational Trust Fund to enhance long-term economic resilience [6] - TMC's Chairman emphasized the importance of a science- and rules-based approach to deep-seabed mineral development, which has shaped the trajectory of the industry [7] - Nauru remains committed to working with the International Seabed Authority (ISA) and acknowledges the delays in adopting Exploitation Regulations that have affected NORI's commercial plans [5][6]

Core Insights - TMC the metals company Inc. reported significant advancements in the deep-sea critical minerals industry, highlighted by the submission of the first-ever application for a commercial recovery permit under U.S. law, marking a pivotal moment for the company and the industry as a whole [4][9] - The company announced a strategic investment of $37 million through a registered direct offering, aimed at advancing its deep-sea mineral development initiatives [8] - TMC's financial results for Q1 2025 showed a net loss of $20.6 million, an improvement from the previous year's loss, alongside a decrease in exploration and evaluation expenses [16][17] Financial Highlights - Total liquidity as of March 31, 2025, was approximately $43.8 million, including cash of $2.3 million [7] - The company reported a net loss of $20.6 million for Q1 2025, compared to a net loss of $25.1 million for the same period in 2024 [16] - Exploration and evaluation expenses decreased to $9.5 million in Q1 2025 from $18.1 million in Q1 2024, attributed to reduced environmental study costs [16] Operational Highlights - TMC USA submitted applications for a commercial recovery permit and two exploration licenses covering a total area of 25,160 square kilometers, with estimated resources of 1.635 billion wet tonnes of polymetallic nodules [9] - The company welcomed Rutger Bosland as Chief Innovation and Offshore Technology Officer to lead offshore innovation and scale technologies for commercial production [10] - A partnership with PAMCO achieved a processing milestone, successfully smelting 450 tonnes of calcine into critical alloy products [11] Industry Developments - The signing of an Executive Order by President Trump aimed at expediting the permitting process for seabed mining, which is expected to bolster domestic supply chains for critical minerals [12][13] - TMC CEO Gerard Barron testified before the U.S. House Natural Resources Subcommittee, emphasizing the importance of deep-sea minerals for U.S. industrial future and national security [14]

Core Viewpoint - TMC the metals company Inc. announced a $37 million registered direct offering to advance its commercial development plans and support operations through the potential issuance of a commercial recovery permit [1][2][3] Group 1: Offering Details - TMC will issue 12.3 million common shares at $3.00 per share, with each share accompanied by a Class C warrant to purchase one additional share at an exercise price of $4.50 per share [2] - The warrants have a three-year term and include a compulsory exercise provision if the stock trades above $7.00 per share for 20 consecutive trading days [2] - Gross proceeds are expected to total approximately $37 million before expenses, sufficient to fund operations through the potential issuance of a commercial recovery permit [2][6] Group 2: Strategic Partnerships - Michael Hess and Brian Paes-Braga are participating in the offering, bringing extensive experience in exploration and production [1][3] - The partnership aims to advance America's mineral independence and support the development of ocean minerals [3][6] Group 3: Regulatory Context - The offering is subject to customary closing conditions and is expected to close on or about May 22, 2025 [2] - Shelf registration statements related to the securities were filed and declared effective by the U.S. Securities and Exchange Commission [3]

Core Viewpoint - The Metals Company (TMC) is advocating for the United States to reclaim its leadership in deep-sea mining to enhance energy and supply chain security, as well as national defense, by responsibly unlocking critical minerals from the deep seabed [2][3][4]. Group 1: Deep-Sea Mining Potential - TMC's CEO Gerard Barron testified that the Clarion-Clipperton Zone, located 2.5 miles deep in the ocean, contains polymetallic nodules rich in nickel, cobalt, manganese, and copper, which hold more minerals than all known land-based reserves combined [3][4]. - The company estimates that seabed mineral extraction could create over 100,000 American jobs and generate over $300 billion in GDP [3][4]. Group 2: Regulatory Framework - The U.S. has a long-established regulatory framework for deep-sea mining through the Deep Seabed Hard Mineral Resources Act of 1980 (DSHMRA), which empowers NOAA to regulate exploration and commercial recovery [5]. - TMC USA has submitted the first-ever application for a commercial recovery permit under DSHMRA, marking a significant milestone in establishing a U.S.-regulated supply of critical seabed minerals [4][5]. Group 3: Environmental Considerations - Barron emphasized that real-world data dispels common environmental myths regarding deep-sea mining, asserting that the U.S. can develop these resources without sacrificing landscapes or communities [3][4]. - Dr. Thomas Peacock from MIT highlighted the need for decisions on deep-sea mining to be based on the latest scientific findings, countering misinformation about environmental impacts [3][4].

Core Viewpoint - President Trump's executive order aims to enhance U.S. self-sufficiency in critical minerals by promoting deep-sea mining, which could benefit companies like The Metals Company [2][4][11] Group 1: Executive Order and Its Implications - The executive order directs the secretaries of Interior and Commerce to expedite U.S. efforts in exploring deep-sea mining for critical minerals [2] - The order aims to develop domestic capabilities for exploration, characterization, collection, and processing of critical deep seabed minerals [4] - It seeks to strengthen partnerships with allies and industry to counter China's influence in the seabed mineral resource space [4] Group 2: The Metals Company Overview - The Metals Company focuses on deep-sea mining and has developed a system to collect polymetallic nodules from the seabed [5] - The company completed a successful pilot test in 2022, collecting approximately 4,500 metric tons of nodules and achieving a sustained hourly production rate of 86.4 metric tons [6] - The Metals Company holds exclusive exploration rights in the Clarion Clipperton Zone, with resources estimated to meet the requirements for 280 million electric vehicles [7] Group 3: Market Context and Challenges - The U.S. is heavily reliant on imports for 12 of the 50 minerals deemed critical, with China being a leading producer of 29 of those minerals [3] - The international community has not yet endorsed deep-sea mining, and The Metals Company is awaiting approval from the International Seabed Authority (ISA) for seabed mining regulations [8] - Trump's push for deep-sea mining has faced opposition from China, which claims the proposal violates international law [9] Group 4: Investment Considerations - While the executive order is seen as a positive for The Metals Company, uncertainties remain regarding the company's ability to commence commercial operations and achieve profitability [11][10] - Investors are advised to consider the high-risk nature of investing in The Metals Company at this time [12]