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]

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]

Core Viewpoint - TMC The Metals Company experienced a significant stock surge of 22.7% following increased visibility from a Wall Street Journal article discussing an executive order that allows mining companies to extract critical metals from the sea floor [1][2]. Company Overview - TMC was founded in 2011 and is focused on deep-sea mining opportunities off the coast of California [4]. - The company has raised $37 million in equity at $3 per share from a strategic investor, which is expected to fund operations through the potential issuance of mining permits [4]. - TMC's current market capitalization is approximately $2 billion, despite not generating any revenue and incurring losses while raising capital [6]. Industry Insights - A 2024 analysis by consulting firm Arthur D. Little estimated the global worth of undersea metals at $20 trillion [3]. - The executive order allowing for undersea mining was issued despite objections from the International Seabed Authority, with studies indicating that the environmental impact may not be as severe as previously thought [3]. Investment Considerations - TMC is viewed as a speculative investment opportunity, particularly for investors interested in high-risk, high-reward scenarios, given its early mover advantage in the undersea mining sector [7]. - The company has invested over $500 million and spent more than a decade preparing for this opportunity, indicating a strong commitment to the sector [5].

Group 1 - The Trump administration is drafting an executive order to allow the U.S. to stockpile metal resources from the Pacific seabed, aiming to counter China's dominance in battery metals and rare earth supply chains [1] - The news has positively impacted stock prices, with TMC the Metals rising over 20% and MP Materials increasing nearly 11% in pre-market trading [1] - The seabed contains polymetallic nodules rich in nickel, cobalt, copper, manganese, and trace rare earth minerals, which are essential for electric vehicle batteries and military equipment [1] Group 2 - The executive order would enable U.S. companies to bypass the International Seabed Authority (ISA) and obtain permits from the National Oceanic and Atmospheric Administration, avoiding controversies related to unregulated deep-sea mining [2] - Deep-sea mining has faced opposition due to high costs, lack of understanding of deep-sea ecosystems, and environmental concerns, leading to a lack of formal regulations from ISA [2] - The U.S. has not ratified the United Nations Convention on the Law of the Sea (UNCLOS) but is still expected to adhere to its principles and obligations [3]