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Why TMC The Metals Company Stock Skyrocketed Again Today
The Motley Fool· 2025-07-03 23:16
Core Viewpoint - TMC The Metals Company experienced significant stock gains, attributed to a favorable macroeconomic environment and strong job growth data, despite the absence of company-specific news [1][2][4]. Group 1: Stock Performance - TMC stock rose by 11.4% in a single trading session, outperforming the S&P 500 and Nasdaq Composite, which increased by 0.8% and 1% respectively [1]. - The stock has surged 531% throughout 2025's trading, indicating a substantial valuation increase [6]. Group 2: Economic Indicators - The Bureau of Labor Statistics reported that 147,000 non-farm jobs were added in June, exceeding the expected 110,000 jobs, with upward revisions for previous months [4]. - The jobs report suggested a stable economy, alleviating concerns about inflation while allowing for potential interest rate cuts by the Federal Reserve, which encouraged stock purchases [5]. Group 3: Industry Outlook - TMC aims to lead in deep sea mining operations, with favorable conditions emerging for the company amid geopolitical tensions, particularly with China [6][7]. - The U.S. government's focus on domestic mineral sourcing as a national security initiative may enhance the role of deep sea mining in the economy [7].
TMC the metal company (TMC) - 2024 Q4 - Earnings Call Transcript
2025-03-27 21:32
Financial Data and Key Metrics Changes - In Q4 2024, the company reported a net loss of $16.1 million or $0.05 per share, compared to a net loss of $33.5 million or $0.11 per share in Q4 2023 [54] - Exploration and evaluation expenses decreased to $8.3 million from $26.7 million in Q4 2023, primarily due to the completion of Campaign 8 [54] - General and administrative expenses increased to $8.1 million from $6.6 million in Q4 2023, mainly due to higher share-based compensation costs [55] Business Line Data and Key Metrics Changes - The company successfully completed its first integrated collection system test since the 1970s, lifting over 3 million tons of nodules to the surface [10] - The company has conducted 23 offshore research campaigns, significantly more than most contractors [11] Market Data and Key Metrics Changes - The company highlighted the geopolitical implications of deep-sea mining, noting that China is actively pursuing deep-sea mining partnerships in the Pacific [23] - Increased interest in deep-sea mining from South Korea, Japan, and India could positively impact the total addressable market for the company's services [24] Company Strategy and Development Direction - The company plans to submit applications for commercial production through the U.S. regulatory framework in Q2 2025, leveraging existing laws and regulations [13][12] - The company aims to establish metal independence for the U.S. and support reindustrialization efforts by accessing polymetallic nodules [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage environmental risks and emphasized the importance of a fair regulatory process [12][39] - The company believes that the U.S. is ready to retake its leadership role in the deep-sea mining industry, driven by national security concerns [25][26] Other Important Information - The company has amassed a significant amount of environmental impact data, totaling nearly one petabyte, to support its applications [47] - The company terminated its contract with a third sponsor state to focus resources on more promising blocks, Nori and Tomal [90] Q&A Session Summary Question: Can you clarify the DISHMA application process? - Management explained that the U.S. will utilize the Freedom of the High Seas to access mineral resources, and they are still in dialogue regarding specific areas for application [61][63] Question: Will AllSeas be able to participate in the new regulatory framework? - Management confirmed that AllSeas can participate, as the production vessel can be U.S. flagged [68] Question: Is the NOAA process a complete shift from the ISA pathway? - Management clarified that the NOAA process is viewed as an incremental path forward, building on previous work and existing regulations [74] Question: What is the timeline for the economic feasibility study? - Management expects the economic feasibility study to be completed in advance of the U.S. applications, with applications anticipated in June [80] Question: What areas will the U.S. application cover? - Management indicated that the specific areas for the U.S. application are still under consideration and may overlap with existing licenses [88] Question: Why was the contract with the third sponsor state terminated? - Management stated that the decision was based on prioritizing resources for the more promising Nori and Tomal blocks [90]