Release Date: May 14, 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) successfully filed applications for exploration licenses and a commercial recovery permit with NOAA, marking a significant regulatory milestone.
- The company secured a $37 million registered direct offering, strengthening its cash position and ensuring sufficient funds to navigate the permitting process.
- TMC The Metals Co Inc (TMC) announced the completion of a pre-feasibility study (PFS) for its commercial recovery area, expected next quarter, which will provide clarity on resource valuation.
- The company has engaged in productive dialogues with US government agencies, highlighting strong support for its strategic importance to America's energy security.
- TMC The Metals Co Inc (TMC) has established strong partnerships, including with Allseas and PAMCO, to leverage existing assets and minimize upfront capital expenditures.
Negative Points
- TMC The Metals Co Inc (TMC) reported a net loss of $20.6 million for Q1 2025, although this was an improvement from the previous year's loss.
- Exploration and evaluation expenses decreased, but general and administrative expenses increased due to higher share-based compensation.
- The company faces challenges from activist speculation and regulatory delays at the International Seabed Authority (ISA), which could impact its operations.
- There is uncertainty regarding the potential overlap between US and ISA regulations, which could complicate future operations.
- TMC The Metals Co Inc (TMC) must navigate complex legal and regulatory frameworks to secure necessary permits and licenses for commercial production.
Q & A Highlights
Q: Can you provide more details on the additional concession area mentioned in your application to NOAA?
A: Gerard Barron, CEO, explained that the additional area is complementary to the Nauru and Tonga grounds and is not claimed by any other sovereign. The company plans to release a map soon, but for commercial sensitivity reasons, they are waiting until after the initial review with NOAA.
Q: What is the expected timeline for the NOAA application process?
A: Gerard Barron, CEO, stated that they expect to hear back soon regarding the status of their application. They are in regular contact with the authorities and anticipate receiving feedback shortly.
Q: How does the recent support for the industry translate to the processing side, and is going downstream a consideration?
A: Gerard Barron, CEO, mentioned that they are evaluating processing options in the US and other countries. They are working with partners and government agencies to explore opportunities for processing in the US, which is a requirement under DSHMRA.
Q: What funding opportunities are you exploring within the US government framework?
A: Craig Shesky, CFO, stated that they are exploring all available options, including offtake arrangements and financing opportunities from various US government agencies as directed by the executive order.
Q: How will the overlapping licenses with NOAA and ISA work if both issue permits?
A: Gerard Barron, CEO, clarified that they are only applying for a commercial recovery permit with NOAA and not with the ISA. They will maintain their exploration licenses with the ISA but will not apply for a commercial recovery permit from them.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
