Key Points TMC has filed the first-ever NOAA consolidated application to explore the seabed for minerals. TMC has received prior unconsolidated approvals, and recovered 3,000 tons of minerals from the ocean. 10 stocks we like better than TMC The Metals Company › TMC the metals company (NASDAQ: TMC) -- that's not a description, that's its actual name -- stock surged 13.7% through 11:40 A.M. ET Thursday, and it's not hard to figure out why. This morning, TMC subsidiary TMC USA filed the country's fi ...

Core Insights - Aqua Metals has entered into a Memorandum of Understanding (MOU) with Impossible Metals to create a domestic supply chain for critical minerals essential for electrification and clean energy technologies [1][2] - The partnership aims to combine Impossible Metals' seabed mining technology with Aqua Metals' recycling capabilities to produce and refine minerals like nickel, cobalt, copper, manganese, and rare earth elements [2][3] - This collaboration is positioned as a step towards enhancing America's critical mineral independence and establishing a sustainable infrastructure for mineral supply [3] Company Overview - Aqua Metals is focused on clean metals recycling and has developed the AquaRefining™ technology, which is a non-polluting process for lithium-ion battery recycling [5] - Impossible Metals specializes in underwater robotics for sustainable mineral collection, with its Eureka Collection System designed to harvest polymetallic nodules while protecting marine ecosystems [4][5] - Both companies share a commitment to innovation and environmental responsibility, aiming to secure a stable supply chain for critical minerals in the U.S. [3][4] Strategic Goals - The partnership will explore the integration of seabed mining and recycling to create a low-carbon, closed-loop process that minimizes waste and environmental impact [5] - The collaboration is expected to contribute to a more resilient and transparent critical minerals market, reducing dependence on overseas sources, particularly from China [5][6] - Future opportunities may arise to expand the scope of this collaboration, enhancing the stability of the global minerals market [5]

Group 1 - The Metals Company (TMC) has experienced significant volatility in its share price, with a notable surge following an $85.2 million investment from Korea Zinc and a positive compliance confirmation from NOAA [1][2] - TMC reported a second-quarter net loss of $74.3 million, leading to a decline of over 35% in share prices from late July highs [2] - TMC is positioned in a market with a $20 trillion opportunity in seabed mining, specifically targeting critical minerals essential for the green energy transition [4][5] Group 2 - The company holds one of the largest undeveloped sources of critical minerals, specifically nodules located at the bottom of the Pacific Ocean [4] - China currently dominates the supply and processing of critical metals, highlighting the urgency for the U.S. to achieve industrial independence [5] - TMC needs to secure commercial rights and permits to begin mining operations, with production expected to start in the fourth quarter of 2027 [6] Group 3 - TMC currently has approximately $115.8 million in cash but is not generating revenue, indicating a reliance on its cash reserves until commercial operations commence [6] - The investment landscape for TMC may be speculative, with potential volatility in the near term, suggesting that alternative investments like clean energy ETFs may be less risky [7][8]

Financial Data and Key Metrics Changes - The company reported a net loss of $74.3 million or $0.20 per share for Q2 2025, compared to a net loss of $20.2 million or $0.06 per share for the same period in 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 cash balance increased significantly to approximately $120 million by July 4, 2025, following various capital raises [30][34] 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][28] - The estimated recoverable nodules for the PFS is 164 million wet tons, with an assumed production start date in Q4 2027 and a life of mine of just over 18 years [21][22] - The revenue mix is expected to be 45% from nickel products, 28% from manganese, 17% from copper, and 9% from cobalt [24] Market Data and Key Metrics Changes - The company has renewed and strengthened agreements with the Republic of Nauru and the Kingdom of Tonga, emphasizing a science-based approach to developing the seabed mining industry [12] - The strategic investment of $85 million from Korea Zinc positions the company to supply refined metals in South Korea and potentially build new facilities in the USA [13] Company Strategy and Development Direction - The company aims to adapt to a capital-light approach while advancing its projects, maintaining a competitive edge in the seabed mining industry [8] - The focus is on achieving regulatory certainty and moving towards first production, with a target date set for Q4 2027 [10][11] - The company plans to build refining capacity in the USA to support its production and contribute to US mineral independence [25][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory environment, noting daily communication with NOAA and a supportive administration [42][43] - The company anticipates good news from regulators and expects to maintain a regular cadence of updates as it progresses through the permitting process [41][44] - There is confidence in the ability to manage normal business risks and supply chain issues, with a strong board and partnerships in place [52] Other Important Information - The company is pursuing funding opportunities from various US government departments for both offshore and onshore components of its operations [66][68] - The anticipated ramp-up in profitability is expected to support significant capital expenditures for onshore refining capacity after production begins [25][27] Q&A Session Summary Question: What work needs to be done to get through the feasibility level and the timeline? - The focus will be on finalizing agreements with Allsys and preparing for the investment decision to order long lead items for production [39] Question: What are the next major steps or milestones regarding permitting under NOAA? - The company expects good news from NOAA and is in daily contact with regulators, anticipating changes to fast-track permitting [41][42] Question: What factors could accelerate or slow down progress towards production? - Management believes there are no significant regulatory hurdles, and the focus will be on managing supply chain issues [52] Question: How will the capital expenditures be split among partners? - The breakdown of capital expenditures is still being finalized, but there is a long-standing assumption of splitting pre-production costs with Allsys [63] Question: Are there funding opportunities available for the offshore side? - The company is actively pursuing funding from various US government programs for both offshore and onshore components [66][68] Question: Could the processing plant development be expedited? - The company could accelerate the development of processing facilities if favorable terms are available from funding agencies [70]

Core Insights - TMC the metals company Inc. reported significant progress in its NORI-D Project, including a world-first declaration of mineral reserves and a combined Net Present Value (NPV) of $23.6 billion from two economic studies [2][5][7] - The company aims to commence commercial production from the NORI-D area in Q4 2027, contingent on receiving necessary permits [6][8] Financial Highlights - As of June 30, 2025, TMC held approximately $115.8 million in cash, with an operating loss of $22 million and a net loss of $74.3 million for the quarter [6][20][19] - The net loss per share for the quarter was $0.20, compared to $0.06 for the same period in 2024 [20][31] - Exploration and evaluation expenses decreased to $10.5 million from $12.4 million year-over-year, while general and administrative expenses increased to $11.5 million from $7.9 million [20][21] Operational Developments - TMC USA received notice of full compliance from NOAA regarding its exploration license applications, confirming priority rights over exploration areas [6][8] - The company has renewed sponsorship agreements with Nauru and Tonga, ensuring continued financial benefits and community programs [9][10] Strategic Investments - A strategic equity investment from Korea Zinc resulted in gross proceeds of $85.2 million, enhancing TMC's financial position and strategic partnerships [12][19] - The investment includes a three-year warrant for additional shares, indicating strong confidence from Korea Zinc in TMC's potential [12] Industry Context - NOAA proposed revisions to regulations under the Deep Seabed Hard Mineral Resources Act, which could streamline the permitting process for seabed mining [13] - The International Seabed Authority has not yet delivered a Mining Code, delaying regulatory clarity for deep-sea mining operations [16] Future Outlook - TMC projects an average annual production rate of 10.8 million tonnes of wet nodules from the NORI-D area, with a life of mine expected to last 18 years [6][7] - The company anticipates a projected after-tax Internal Rate of Return (IRR) of 27% for the NORI-D Project and 36% for the broader resource areas [6][20]

Core Viewpoint - TMC The Metals Company has experienced a significant stock price increase of 378% year to date, but recent trading has seen a pullback due to U.S.-China trade negotiations and profit-taking by investors [1][5]. Group 1: Stock Performance - TMC stock declined by 10% in July, contrasting with a 2.2% rise in the S&P 500 and a 3.7% increase in the Nasdaq Composite [1]. - The stock continued to slide in August, down approximately 10% as investors reduced exposure amid uncertain trade dynamics [5]. - Despite recent sell-offs, TMC's share price remains up roughly 378% year to date [5]. Group 2: Trade Negotiations and Market Dynamics - Developments in U.S.-China trade negotiations, including the lifting of export restrictions on high-end AI chips, have influenced TMC's stock performance [3]. - The Trump administration's concessions in technology exports aim to secure long-term access to China's rare earth mineral supply, which is strategically important for TMC [4]. - The recent pullback in TMC's stock follows a massive valuation run-up earlier in the year, reflecting investor sentiment regarding trade negotiations [2][4]. Group 3: Company Operations and Market Capitalization - TMC currently has a market capitalization of approximately $1.9 billion and remains in a pre-revenue state, needing key regulatory approvals to commence commercial seabed mining operations [6]. - An executive order from President Trump to expedite permitting reviews for seabed mining is seen as a positive development for TMC [7]. - Increased government support for domestic rare earth mining projects is expected to facilitate TMC's operational launch and scaling [6].

Core Viewpoint - TMC The Metals Company has experienced a significant stock price increase of approximately 368% year to date, despite being considered a risky investment [1][2][6] Group 1: Company Performance - TMC's stock has surged due to expectations of regulatory changes and political dynamics that may accelerate its operational deployment and growth [2][4] - The company is currently in a pre-revenue state, indicating high investment risk, but there are favorable dynamics that could lead to substantial price increases [4][6] Group 2: Regulatory Environment - An executive order signed by President Trump aims to expedite permitting for seabed mining operations, which TMC has responded to by submitting several regulatory applications [5] - The potential for seabed mining is seen as crucial for enhancing the U.S. ability to source rare earth minerals domestically [5] Group 3: Market Capitalization and Speculation - TMC has a market capitalization of approximately $1.9 billion, categorizing it as a relatively small and speculative investment [6] - Despite the high level of risk, there is a belief that TMC's valuation could significantly exceed current levels, driven by geopolitical factors and the importance of rare earth mineral sourcing [6]

Core Viewpoint - The recent geopolitical developments, particularly regarding U.S.-China trade relations, have led to significant volatility in TMC stock, which experienced a 24.8% decline last week [1][2]. Group 1: Stock Performance - TMC stock faced substantial sell-offs due to the U.S. lifting technology export restrictions on high-performance semiconductors and chip manufacturing equipment to China [2][4]. - Despite the recent pullback, TMC stock remains up 424% for the year 2025, driven by the U.S. administration's focus on enhancing mineral sourcing capabilities [5]. Group 2: Trade Relations Impact - The lifting of export restrictions is part of efforts to negotiate a trade agreement with China, which could have mixed implications for TMC's growth outlook [4][5]. - A trade agreement may reduce the urgency for TMC and other seabed mining companies to scale operations, but domestic mineral sourcing capabilities are likely to remain a national priority [6][7].

Group 1 - TMC's stock is experiencing significant sell-offs, down 8.2% amid a broader market decline [1][2] - The pressure on TMC's stock is linked to the U.S. facilitating a trade deal with China, which may weaken TMC's expansion outlook [2][5] - The Trump administration's recent lifting of export licensing requirements for advanced semiconductors to China is aimed at advancing trade talks, potentially impacting TMC's access to rare earth minerals [3][5] Group 2 - TMC has seen substantial gains this year, with a rise of over 500%, as investors anticipate its seabed mining capabilities to play a crucial role in U.S. mineral sourcing [4][6] - The future of TMC's stock valuation may be influenced by the inclusion of mineral access in a U.S.-China trade deal, which could create valuation pressures [5][6] - Despite the recent developments, the U.S. is likely to prioritize domestic mineral sourcing, suggesting that TMC's growth prospects are not entirely compromised [6]

Core Viewpoint - TMC The Metals Company has experienced significant stock price increases, driven by bullish investor sentiment and potential regulatory approvals for seabed mining operations [1][2][4]. Group 1: Stock Performance - TMC's share price rose 16.3% over the past week, with a remarkable increase of 158% over the last three months and 582% year to date [1][2]. - The S&P 500 index saw a modest increase of 0.6% during the same period [1]. Group 2: Regulatory Environment - The company is anticipating major regulatory approval for seabed mining, which has fueled investor optimism despite the absence of recent news [2][4]. - In April, an executive order by President Trump aimed to expedite the review process for mining applications, leading TMC to submit its first application for seabed mining approval [5]. Group 3: Market Dynamics - Tensions between the U.S. and China regarding access to rare earth minerals have heightened the strategic importance of TMC's operations, contributing to the stock's gains [4]. - Recent developments involving Nvidia and potential export licenses for AI processors to China may introduce volatility for TMC's stock, as these negotiations could impact access to rare earth minerals [6][7][8].