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]

Core Viewpoint - The Metals Company (TMC) welcomes the new NOAA rule that modernizes regulations for deep seabed mineral exploration and recovery, which is expected to enhance operational efficiency and support the company's long-term strategy [1][3][5]. Regulatory Updates - NOAA's final rule titled "Deep Seabed Mining: Revisions to Regulations for Exploration License and Commercial Recovery Permit Applications" became effective on January 21, 2026, updating the federal permitting framework for U.S. companies [2][5]. - The new rule allows for a consolidated application process, enabling qualified applicants to submit exploration and commercial recovery information together, thus streamlining the regulatory process [2][5]. Industry Impact - The updated regulations reflect significant advancements in environmental science, seafloor mapping, and offshore mineral-collection technologies, which have improved the industry's readiness for commercial recovery [3][5]. - NOAA has emphasized the importance of the new rule in light of decades of technological improvements and the substantial data gathered from deep seabed exploration activities [3][4]. Company Strategy - TMC plans to submit a consolidated application under the new regulations, anticipating that the streamlined review process will reduce the time required to secure a commercial recovery permit [3][5]. - The updated regulatory framework aligns with TMC's strategy to transition from exploration to commercial production, supporting the company's dual mission of supplying critical metals with lower environmental impact [6].

Core Viewpoint - The International Seabed Authority (ISA) cannot legally approve deep seabed mining without establishing benefit-sharing rules, which remain unresolved despite increasing pressure for commercial extraction [1][4][14] Industry Overview - The debate surrounding deep seabed mining focuses on the ISA's timeline for finalizing exploitation regulations, especially after Nauru invoked the two-year rule in 2021 to expedite the process [2] - Mining companies and certain states believe that the adoption of exploitation rules would facilitate commercial activities, but legal experts argue that these rules alone do not fulfill the requirements of the UN Convention on the Law of the Sea (UNCLOS) [3][4] Regulatory Challenges - Under UNCLOS, the ISA Assembly holds the authority over benefit-sharing regulations, which must be approved separately from exploitation rules, leading to a slower process [6] - The absence of clear benefit-sharing rules prevents states from assessing whether seabed mining serves the interests of humanity as a whole, with African nations emphasizing the need for demonstrable shared benefits [7] Geopolitical Context - Geopolitical interest in seabed minerals is rising, particularly from the US, which is not a party to UNCLOS but seeks access to critical minerals from the ocean floor, causing concern among treaty members [8] - Companies like Lockheed Martin and Impossible Metals are actively pursuing seabed mining opportunities, despite ongoing regulatory uncertainties [8][9] Financial Developments - The Metals Company from Canada has made strides by filing for a commercial permit and securing an $85.2 million investment from Korea Zinc, positioning itself as a viable alternative for refining extracted materials [10] Progress on Benefit Sharing - Progress on establishing benefit-sharing regulations has been slow, with the ISA's Finance Committee only releasing its first draft framework in 2024, decades after initial discussions began [11] - Current discussions are leaning towards creating a Common Heritage Fund to finance research and capacity building, although critics argue this diverts from the goal of reducing global inequality [12] Future Considerations - The ISA Council has requested further development of the Common Heritage Fund concept, while legal experts warn that proceeding with mining before resolving benefit-sharing issues would violate UNCLOS and hinder future negotiations [13]

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]