TMC the metal company (US:TMC)2025-05-14 21:32Financial Data and Key Metrics Changes - The company 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, indicating an improvement in financial performance [37] - Exploration and evaluation expenses decreased to $9.5 million in Q1 2025 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 2024, primarily due to higher share-based compensation [37] Business Line Data and Key Metrics Changes - The company achieved significant milestones in its applications for exploration licenses and a commercial recovery permit, which are expected to be deemed substantially compliant and complete by NOAA [9][10] - The company is preparing for commercial production and expects to release its Pre-Feasibility Study (PFS) in Q3 2025, which will provide clarity on resource valuation beyond the current focus area [11][32] Market Data and Key Metrics Changes - The company estimates that its exploration license areas contain over 1.6 billion tons of nodules, with an additional 500 million tons of exploration upside, representing critical minerals essential for various industries [13] - The demand for metals contained in nodules is expected to grow significantly, particularly for nickel and manganese, which are critical for EV battery production [20][21] Company Strategy and Development Direction - The company aims to establish a clear regulatory pathway for deep-sea mining in the U.S., which is seen as crucial for unlocking the potential of seabed minerals [5][12] - The company is exploring alternative financing sources and partnerships to support its commercial production strategy, emphasizing a capital-light approach [10][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory environment, noting that NOAA has committed to expediting the review of applications, which is expected to facilitate timely commercial operations [16] - The company believes that the recent executive order from the U.S. government will enhance its position in the deep-sea mining industry and support its strategic goals [14][15] Other Important Information - The company completed a $37 million registered direct offering to strengthen its cash balance and support ongoing operations [6][39] - The company has engaged in extensive dialogue with U.S. government agencies to explore financing opportunities and support for its initiatives [69] Q&A Session Summary Question: Can you provide more details on the exploration ground applied for? - Management confirmed that the additional area applied for is complementary to existing concessions and is not claimed by any other sovereign [44][46] 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 [50][51] Question: Are there plans to process nodules in the U.S.? - Management is exploring processing opportunities in the U.S. and has engaged with potential partners, emphasizing the importance of bringing jobs and economic activity back to the U.S. [58][60] Question: How will overlapping licenses work with ISA? - Management clarified that they are applying only under U.S. regulations and will not apply to ISA for a collection license, maintaining compliance with existing exploration contracts [76][80] 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 [82]