Happy metal worker greeting his manager in aluminum mill.gettyCurrently priced at $5.42, TMC The Metals Company (NASDAQ: TMC) is trading for less than half of its 52-week high of $11.35, highlighting the volatility of this stock's narrative — and how tenuous that narrative can be.TMC is not a conventional mining company. It specializes in deep-sea exploration aimed at extracting polymetallic nodules from the Clarion-Clipperton Zone (CCZ) located in the Pacific Ocean. These nodules are abundant in nickel, co ...

Key Points The Metals Company is a deep-sea mining startup that aims to extract polymetallic nodules from the Pacific Ocean. It doesn't have regulatory approval to mine nodules commercially, but a short-cut from the White House may help it get a commercial license. The company is pre-revenue and posting significant losses. 10 stocks we like better than TMC The Metals Company › At the bottom of the Pacific Ocean, in a region between Mexico and Hawaii, lie billions and billions of tons of polymetal ...

Core Insights - TMC the metals company Inc. has reported significant progress in its development of critical metals, with a focus on deep-sea polymetallic nodules, which are essential for energy, defense, and manufacturing sectors [1][3] - The company has completed a Pre-Feasibility Study and Initial Assessment, marking a major milestone and positioning itself strongly amid increasing public and private investments in critical minerals [3][4] - TMC's financial position is robust, with $121 million in cash and total liquidity of $165 million, indicating no immediate need for public market financing [3][15] Financial Highlights - For Q3 2025, TMC reported a net loss of approximately $184.5 million, or $0.46 per share, compared to a net loss of $20.5 million, or $0.06 per share, in Q3 2024 [9][16] - The company had cash reserves of approximately $115.6 million as of September 30, 2025, and used $11.5 million in operations during the quarter [9][15] - Exploration and evaluation expenses decreased to $9.6 million from $11.8 million year-over-year, attributed to reduced environmental study costs [17] Operational Highlights - TMC announced two economic studies with a combined Net Present Value (NPV) of $23.6 billion, demonstrating the economic viability of its NORI-D Project [7] - The company declared a world-first of 51 million tonnes of probable mineral reserves for its polymetallic nodule project [7] - TMC successfully produced battery-grade manganese sulfate from nodule-derived manganese silicate, showcasing its capability to meet modern industry demands [5][8] Industry Developments - The U.S. government is showing support for seabed mineral exploration, with NOAA's proposed rule under White House review to streamline the permitting process [4][12] - All four metals contained in TMC's nodules have been added to the U.S. Critical Minerals List, enhancing their strategic importance [14] - The U.S. and Japan are collaborating on developing rare earths from seabed minerals, indicating a strategic move towards leading in the deep-sea minerals industry [13]

Core Insights - The Metals Company (TMC) has seen significant stock volatility, with a 36.1% decline following a 50% increase earlier in October, despite being up over 500% year-to-date [1][9] - The company focuses on extracting and refining polymetallic nodules from the Pacific Ocean seafloor, which are rich in manganese, cobalt, nickel, and copper, essential for electric vehicle batteries [2][3][4] - TMC has not yet commenced commercial operations and lacks the necessary permits for collection and processing, making it a highly speculative investment [5][6] Company Overview - The Metals Company is engaged in the collection and processing of metals from the seafloor, specifically targeting polymetallic nodules found in the Clarion-Clipperton Zone (CCZ) [2][4] - The CCZ is located in international waters and is regulated by the International Seabed Authority (ISA), where TMC holds exploration contracts but no collection contracts [6] Market Context - The recent surge in TMC's stock was influenced by China's tightening of export controls on critical metals, raising concerns about global supply chain disruptions [8][9] - The U.S. and other economies view copper, cobalt, nickel, and manganese as critical metals, with China being a major producer [7] Future Prospects - There is potential for increased regulatory sympathy towards new sources of critical metals due to geopolitical tensions, particularly with China [10] - TMC faces significant operational challenges, including a lack of excavation equipment and processing facilities, with commercial production not expected until Q4 2027 and full-scale operations by 2043 [11] - Short-term stock recovery appears unlikely unless there is a significant disruption in the supply of metals TMC plans to mine [12]

Core Viewpoint - The Metals Company (TMC) is positioned as a potential leader in deep-sea mining, aiming to extract metal-rich nodules from the Pacific Ocean, which could significantly impact the supply chain for clean energy technologies and reduce reliance on Chinese rare-earth sources [3][6][14]. Industry Overview - Rare-earth metals are crucial for various technologies, including electric vehicle batteries and renewable energy systems, but their supply is heavily concentrated in a few countries, particularly China, which controls about 70% of global rare-earth mining and nearly 90% of processing [2][7]. - The U.S. imports approximately 80% of its rare earths, with over 75% sourced from China, highlighting the urgent need for alternative supply sources due to recent export restrictions from China [7]. Company Analysis - TMC plans to operate in the Clarion-Clipperton Zone, which contains trillions of polymetallic nodules rich in nickel, manganese, copper, zinc, and cobalt, essential for various applications [6][10]. - The company has secured exploration rights and mapped potential mining sites but faces significant hurdles in obtaining mining permits from the International Seabed Authority (ISA), which is still finalizing its regulations [10][11]. - TMC is attempting to navigate regulatory challenges by applying for a mining permit under an older U.S. offshore minerals law, potentially allowing it to bypass some ISA requirements if national interests are involved [12]. Financial Considerations - TMC is currently pre-revenue, with a market capitalization of approximately $2.1 billion, and reported a net loss of $20.6 million in the first quarter of the year [14]. - The company has about $43.8 million in total liquidity, including $2.3 million in cash, which may diminish quickly without progress on securing mining permits [14]. - For an investor to see a significant return, such as growing a $5,320 investment to $1 million, TMC would need to achieve a 188-fold increase in share price, equating to a compound annual growth rate of 68.8% over ten years, which is highly uncommon in public markets [13].

Financial Performance & Projections - The Pre-Feasibility Study (PFS) shows a Net Present Value (NPV) of $5.5 billion [9], while the Initial Assessment (IA) indicates an NPV of $18.1 billion [9] - The PFS estimates a 27% Internal Rate of Return (IRR), and the IA projects a 36% IRR [47, 63] - The PFS anticipates steady-state production of 11 million wet tonnes of nodules per annum from 2031 to 2043 [47] - The PFS projects an EBITDA margin of 43% during steady-state production years, translating to $254 per dry tonne of nodules [56] - The company estimates C1 cash costs of $1,065 per tonne of nickel, including byproduct credits, placing it in the 1st quartile of the nickel cost curve [54] Resource & Production - The PFS focuses on the NORI-D area, with probable reserves of 51 million tonnes [10] and a total resource of 352 million tonnes [47] - The IA covers the TOML and NORI areas (excluding NORI-D), estimating a resource of 1,276 million tonnes [63] - The company anticipates first production in Q4 2027 [15] - The combined PFS and IA cover an estimated resource of 1.6 billion tonnes of nodules [65] Strategic Investments & Partnerships - Korea Zinc made a strategic equity investment of $85.2 million in exchange for 19.6 million common shares at $4.34 per share [25] - The company has a pro forma cash balance of $120.7 million as of June 30, 2025, and total liquidity of $165 million including borrowing capacity [72]

Core Insights - TMC the metals company Inc. has released a Technical Report Summary (TRS) for its Pre-Feasibility Study (PFS) on the NORI-D Polymetallic Nodule Project, marking a world-first declaration of Probable Mineral Reserves for deep-sea polymetallic nodules [1][5][7] - The PFS indicates a projected After-tax Net Present Value (NPV) of $5.5 billion and an After-tax Internal Rate of Return (IRR) of 27% for the NORI-D Project, with a mine life of 18 years [5][41] - An Initial Assessment (IA) for the remaining resources in the NORI and TOML blocks shows a measured and indicated mineral resource of 73 million tonnes (Mt) and an inferred resource of 1,206 Mt, supporting an After-tax NPV of $18.1 billion and an After-tax IRR of 35.6% [2][41] Project Overview - The NORI-D Project is expected to commence commercial production in Q4 2027, targeting an average annual production rate of 10.8 million tonnes of wet nodules [5][7] - The project is designed to leverage existing offshore and onshore infrastructure, adopting a capital-light approach to minimize upfront costs [13][18] - Initial processing will utilize rotary kiln electric furnace (RKEF) technology in Japan and Indonesia, with plans for future refining facilities in the U.S. [15][21] Economic Potential - The combined project value of the NORI-D Project and the remaining resources is estimated at $23.6 billion, highlighting significant economic viability and scalability [5][7] - The PFS outlines a phased development plan, with an expected steady-state production rate of 97 kilotonnes per annum (ktpa) nickel, 2,389 ktpa manganese, 70 ktpa copper, and 7.4 ktpa cobalt [5][41] - The IA indicates a total estimated resource Net Project Value of $18.1 billion, with a steady-state average EBITDA margin of 57% [41][52] Resource Details - The PFS identifies 51 million tonnes of probable mineral reserves, with an additional 113 million tonnes of recoverable nodules expected from detailed survey and mine planning [5][26][30] - The total mineral resource estimate for NORI-D, excluding reserves, is approximately 274 million tonnes of wet nodules, classified into measured, indicated, and inferred categories [27][30] - The IA outlines the potential for collecting approximately 670 million tonnes of wet polymetallic nodules across the NORI and TOML contract areas [41][46] Environmental and Operational Strategy - The project emphasizes responsible production with a focus on minimizing environmental impact through advanced modeling and seafloor mapping [34][36] - TMC plans to employ proven technologies for processing, aiming for high metallurgical recoveries and low solid waste generation [37][40] - The operational strategy includes real-time environmental monitoring and adaptive management practices to ensure sustainable growth [31][34]

Company Overview - The Metals Company (TMC) is focused on harvesting polymetallic nodules from the Clarion Clipperton Zone (CCZ) in the Pacific Ocean, which contain essential metals for electric vehicle batteries and solar panels [4][5] - TMC aims to provide a more environmentally friendly alternative to traditional land-based mining by extracting these nodules from the seabed [5] Market Potential - The CCZ is estimated to hold around 21 billion metric tons of nodules, potentially containing more nickel, cobalt, and other rare earth metals than all land-based reserves combined [6] - The demand for battery metals is expected to reach multitrillion-dollar levels over the next few decades, positioning TMC as a potential key player if it can successfully enter the market [12] Financial Performance - TMC reported zero revenue in Q1 2025, with a net loss of approximately $20.6 million, an increase from $16.1 million in the previous quarter [8] - The company is currently not generating income and is facing significant financial challenges as it builds its underwater mining infrastructure [8] Regulatory Environment - TMC does not yet have permission to mine commercially in the CCZ, as the regulatory framework from the International Seabed Authority (ISA) is still being finalized [9] - The U.S. has not ratified the treaty that established the ISA, which could allow TMC to pursue mining under U.S. jurisdiction if its permit application is approved [10][11] Strategic Moves - In April 2025, TMC filed a permit application under U.S. law following an executive order aimed at renewing interest in offshore critical minerals [11] - If successful, this could enable TMC to operate in areas that are currently restricted to other nations, potentially giving it a competitive advantage [11] Investment Considerations - TMC represents a high-risk, high-reward investment opportunity, with significant potential upside if it secures the necessary permits and scales its technology [12] - The current market cap of $2.65 billion may appear small compared to the anticipated demand for battery metals, but the company faces numerous uncertainties that could impact its future [12][13]

Core Insights - TMC The Metals Company has seen a significant increase in stock value, rising 576% this year, indicating strong investor interest in the deep-sea minerals sector [1][10] - The company focuses on harvesting polymetallic nodules from the ocean floor, which are rich in critical metals such as nickel, cobalt, manganese, and copper, essential for various industries and a lower-carbon future [3][4] Company Overview - TMC is based in Vancouver and holds exploration rights in the Clarion-Clipperton Zone, a mineral-rich area in the Pacific Ocean [7] - The company has not yet commenced mining operations, pending regulatory approval from the International Seabed Authority (ISA) [7][9] Industry Context - The U.S. relies heavily on foreign sources for critical minerals, with over 80% of its supply coming from abroad, raising national security and environmental concerns [4][5] - Deep-sea mining is presented as a less disruptive alternative to land-based mining, which threatens sensitive ecosystems [6] Financial Performance - TMC reported a net loss of $20.6 million in Q1 2025 and has invested over $500 million in developing deep-sea mining technology [11] - The company has $2.3 million in cash and $41.5 million in available credit, which is expected to sustain operations until at least May 2026 [11] Future Projections - TMC has ambitious projections for its NORI-D project, estimating nearly $2 billion in EBITDA by 2027 and annual revenue of $4.7 billion from 2030 to 2046, although these estimates are based on numerous assumptions [13]

Group 1 - The Metals Company experienced a significant stock increase of 489.3% in the first half of 2025, following a 19.1% gain in 2024 [1] - The new administration under President Trump is focused on securing the supply of critical minerals, which has positively influenced investor sentiment towards The Metals Company [3] - The company is engaged in collecting seabed nodules to produce critical minerals such as cobalt, copper, manganese, and nickel [4] Group 2 - An executive order issued by President Trump in April emphasized the importance of seabed mineral resources, leading to a 45% increase in The Metals Company's stock on the day of the announcement [5] - In June, The Metals Company announced an equity investment of $85.2 million from Korea Zinc, further boosting investor confidence [6] - The company remains in the pre-revenue phase, and potential investors are advised to consider their risk tolerance before investing [8]