TMC the metal company (US:TMC)2023-05-11 21:02Q1 2023 Financial Highlights - The company reported a net loss of $0 million for Q1 2023, which includes a $14 million gain from the sale of the NORI royalty to Low Carbon Royalties, compared to a net loss of $21.1 million in Q1 2022[5] - The company's total cash was $28.4 million as of March 31, 2023[5] - The company used $23.5 million in operations in Q1 2023, compared to $15.5 million in Q1 2022[5] Financing Activities in Q1 2023 - The company closed a $25 million unsecured credit facility with the parent of Allseas Investments SA in March 2023, which remains undrawn[6] - The company received $5 million plus a 35% initial equity stake in Low Carbon Royalties (LCR), now 32% following 2 accretive LCR transactions[6] Regulatory and Market Updates - The International Seabed Authority (ISA) is progressing towards final regulations for seabed mining, with estimated initial commercial production on the NORI-D area in late 2024 or early 2025[7, 10] - Recent global headlines reflect increasing investment and interest in seafloor resources, including activities by Transocean/GSR, Norway, Japan, and France[11, 12] NORI-D Project and Resource Estimate - The NORI-D project is estimated to have a net present value (NPV) of $6.8 billion based on the March 2021 Initial Assessment, and an estimated $13.2 billion using current metal prices[37] - The NORI-D project contains an estimated resource of 1,634 million tonnes (wet), representing 22% of the company's estimated resource[38, 39] Environmental Impact and LCA - Benchmark Mineral Intelligence completed an independent third-party lifecycle assessment (LCA) of the NORI-D Project, showing it performed better in almost every impact category analyzed than all the land-based routes chosen for comparison[6] - Research indicates that sediment plumes from nodule collection are less extensive than previously speculated, with 92-98% of the plume from the pilot nodule collector vehicle rising only 2 meters above the seafloor[32] Processing and Partnerships - The company signed a non-binding MoU with Pacific Metals Co Ltd (PAMCO) of Japan to evaluate the tolling of 1.3 million tonnes of wet polymetallic nodules per year at PAMCO's Hachinohe smelting facility starting in 2025[6, 27]