Financial Data and Key Metrics Changes - TMC reported a net loss of approximately $20.6 million or $0.06 per share in Q1 2025, compared to a net loss of $25.2 million or $0.08 per share for the same period in 2024 [37] - Exploration and evaluation expenses for Q1 2025 were $9.5 million, down from $18.1 million in 2024, attributed to lower mining and technological costs [37] - General and administrative expenses increased to $8.5 million in Q1 2025 from $6.6 million in the comparative quarter due to higher share-based compensation [37] - Net cash used in operating activities was $9.3 million in Q1 2025, compared to $11.8 million in 2024, reflecting reduced cash outflows [38] - TMC's liquidity, including cash and borrowing capacity, stood at about $44 million as of March 31, 2025, or $81 million pro forma after a recent direct offering [38] Business Line Data and Key Metrics Changes - The company achieved significant milestones in regulatory applications, including the submission of the world's first application for a commercial recovery permit for deep-sea minerals [11][12] - The company expects to complete its Pre-Feasibility Study (PFS) for the commercial recovery area in the next quarter, which will provide new assumptions based on the U.S. permitting strategy [11][31] Market Data and Key Metrics Changes - The U.S. government has shown increased support for deep-sea mining, with recent executive orders aimed at expediting the permitting process and enhancing domestic supply chains for critical minerals [14][17] - The company estimates that its exploration license areas contain over 1.6 billion tons of nodules, with significant quantities of nickel, copper, cobalt, and manganese, which are critical for various industries [13] Company Strategy and Development Direction - TMC is focused on establishing a clear regulatory pathway for deep-sea mining, which is expected to enhance shareholder value and attract investment [5][15] - The company plans to explore alternative financing sources, including U.S. government departments and strategic partners, to prepare for commercial production [10] - TMC aims to maintain a capital-light approach by leveraging partnerships with existing facilities and minimizing upfront capital expenditures [30][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory clarity achieved and the potential for significant job creation and economic impact from deep-sea mining [14][19] - The company is encouraged by the level of professionalism and urgency from U.S. agencies regarding the permitting process, which is expected to facilitate timely commercial operations [16][17] - Management highlighted the importance of the U.S. leading in deep-sea mining to secure critical mineral supply chains and reduce reliance on foreign sources [19][24] Other Important Information - TMC has engaged in extensive consultations with NOAA and other U.S. agencies to ensure compliance with regulatory requirements and expedite the review process [12][16] - The company has a strong commitment to environmental research and has invested over $200 million in cumulative environmental spending [30] Q&A Session Summary Question: Can you provide more details on the exploration ground and its potential? - Management confirmed that the additional area applied for is complementary to existing concessions and is not claimed by any other sovereign [45][49] Question: What is the expected timeline for the application review process? - Management indicated that they expect to receive feedback from NOAA soon and are in regular contact with the authority [52][53] Question: Are there plans to go downstream in processing? - Management acknowledged the potential for downstream processing and is exploring partnerships while ensuring capital-light operations [59][62] Question: What funding opportunities are being pursued with the U.S. government? - Management is exploring various financial assistance options, including loans and grants, as part of a comprehensive approach to funding [70][71] Question: How will overlapping licenses work with ISA? - Management clarified that TMC is applying only under U.S. regulations and will not apply to ISA for a collection license [76][82] Question: Will there be issues selling metals to ISA member states? - Management does not foresee any issues with potential customers purchasing metals, emphasizing the growing demand for these resources [83]