TMC's U.S. division, The Metals Company (TMC, Financial) USA, has recently advanced its strategic positioning by submitting applications for a commercial recovery permit, along with two exploration licenses. These applications fall under the Deep Seabed Hard Mineral Resources Act (DSHMRA) and the regulations implemented by the National Oceanic and Atmospheric Administration (NOAA), which together constitute the U.S. seabed mining framework.
This development aligns with the recent Executive Order titled ‘Unleashing America’s Offshore Critical Minerals and Resources.’ This directive instructs the Department of Commerce to speed up the permitting process. Additionally, the Departments of Defense and Energy have been tasked with exploring ways to use the National Defense Stockpile and create offtake agreements aimed at securing seabed minerals. These resources are deemed crucial for maintaining the industrial resilience of the United States.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for TMC The Metals Co Inc (TMC, Financial) is $5.95 with a high estimate of $6.25 and a low estimate of $5.60. The average target implies an upside of 79.76% from the current price of $3.31. More detailed estimate data can be found on the TMC The Metals Co Inc (TMC) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, TMC The Metals Co Inc's (TMC, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
TMC Key Business Developments
Release Date: March 27, 2025
- Net Loss: $16.1 million or $0.05 per share for Q4 2024, compared to $33.5 million or $0.11 per share for Q4 2023.
- Exploration and Evaluation Expenses: $8.3 million in Q4 2024, down from $26.7 million in Q4 2023.
- General and Administrative Expenses: $8.1 million in Q4 2024, up from $6.6 million in Q4 2023.
- Net Cash Used in Operating Activities: $13.8 million in Q4 2024, compared to $15.2 million in Q4 2023.
- Free Cash Flow: Negative $13.9 million in Q4 2024, compared to negative $15.6 million in Q4 2023.
- Cash and Liquidity: $62 million at December 31, 2024, or $48 million pro forma for credit facility amendments and direct proceeds in Q1 2025.
- Registered Direct Offering: Issued 19.9 million common shares and 9.95 million Class B warrants, raising $19.9 million.
- Accounts Payable and Accrued Liabilities: $42.7 million at the end of 2024, including $25.8 million owed to Allseas.
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.
