Release Date: March 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- TMC The Metals Co Inc (TMC, Financial) announced a new regulatory pathway through the US regulatory regime, potentially accelerating their path to commercial production.
- The company has amassed a significant amount of environmental impact data, which supports their application for commercial production.
- TMC The Metals Co Inc (TMC) has successfully tested and demonstrated the feasibility of their nodule collection and processing technology.
- The company has reduced its net loss significantly from $33.5 million in Q4 2023 to $16.1 million in Q4 2024.
- TMC The Metals Co Inc (TMC) has a strong liquidity position with $62 million in cash and borrowing capacity as of December 31, 2024.
Negative Points
- The International Seabed Authority (ISA) has repeatedly delayed the adoption of a mining code, creating regulatory uncertainty.
- There is potential geopolitical tension, particularly with China, which is also pursuing deep-sea mining initiatives.
- The company faces challenges in securing regulatory certainty, which is crucial for moving forward with commercial production.
- TMC The Metals Co Inc (TMC) has terminated its contract with a third sponsor state, which may limit its exploration opportunities.
- The company's financial results show a continued net loss, indicating ongoing financial challenges.
Q & A Highlights
Q: Can you explain how the DSHMRA application will work in relation to your existing licenses under UNCLOS? Are these overlapping or separate areas?
A: Gerard Barron, CEO: The freedom of the high seas allows the US to access these waters under the same rights as any member country of the International Seabed Authority (ISA). We haven't announced the specific areas yet, but we aim to leverage the work we've done over the last 14 years. This isn't about starting over; it's about finding the fastest path to commercial production. The environmental regulations under DSHMRA are thorough and sensible, and we'll announce more once we formally lodge the applications.
Q: If you receive approval through the US path, can your partner Allseas legally participate, given their vessel is not US-based?
A: Gerard Barron, CEO: Yes, Allseas can participate. The production vessel needs to be US-flagged, which is a straightforward process. Our US subsidiary, established in 2013, is the applicant initiating this process.
Q: Is the NOAA process a complete shift from the ISA pathway, or is it a secondary avenue?
A: Craig Shesky, CFO: It's a new path that we view as advantageous and the best chance of success. It's not about closing one door and opening another; it's an incremental path forward. The legal framework has always been there, but the political appetite in the US to take advantage of it is what's changed with the new administration.
Q: Can you provide any details on the timeline or key milestones for this new process?
A: Gerard Barron, CEO: We have a strong sense of the timeline, but we'll provide more details as the dialogue with the permitting agency progresses. The process involves a two-way consultation, which is refreshing and allows us to align our application with the work done under NOAA sponsorship in the past.
Q: How does this new path impact the timeline for the upcoming economic study?
A: Craig Shesky, CFO: We still expect to complete the economic study before our US applications in June. The economic analysis is important for both the US and ISA applications, and while the new path brings additional points for discussion, it remains a priority.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
