TMC, the metals company, has announced adjustments in relation to its securities purchase agreement previously reported on November 14, 2024. Originally, TMC agreed to sell nearly 19.9 million of its common shares alongside Class B warrants, allowing the purchase of an additional 9.95 million shares at $2.00 each. On June 17, 2025, TMC decided to waive certain limitations tied to the cashless exercise of these Class B warrants. This means holders can now exercise their warrants without needing to pay cash upfront, opting instead for a net number of common shares according to the formula provided. Currently, warrants for the acquisition of approximately 8.65 million shares remain unexercised. TMC views this move as beneficial for its shareholders, potentially reducing the issuance of common shares via warrant exercises, especially after securing improved financial backing from strategic investors. Following this announcement, TMC's shares have experienced an 8.6% increase in pre-market trading.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for TMC The Metals Co Inc (TMC, Financial) is $7.18 with a high estimate of $12.00 and a low estimate of $5.50. The average target implies an upside of 31.99% from the current price of $5.44. More detailed estimate data can be found on the TMC The Metals Co Inc (TMC) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, TMC The Metals Co Inc's (TMC, Financial) average brokerage recommendation is currently 2.0, 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: May 14, 2025
- Net Loss: $20.6 million or $0.06 per share in Q1 2025, compared to $25.2 million or $0.08 per share in Q1 2024.
- Exploration and Evaluation Expenses: $9.5 million in Q1 2025, down from $18.1 million in Q1 2024.
- G&A Expenses: $8.5 million in Q1 2025, up from $6.6 million in Q1 2024.
- Net Cash Used in Operating Activities: $9.3 million in Q1 2025, compared to $11.8 million in Q1 2024.
- Free Cash Flow: Negative $9.4 million in Q1 2025, compared to negative $12.1 million in Q1 2024.
- Liquidity: $44 million as of March 31, 2025, or $81 million pro forma following a $37 million registered direct offering.
- Credit Facility: Increased by $6 million to $44 million in March 2025.
- ATM Facility: Raised $5.7 million in Q1 2025, issuing approximately 3 million shares at an average price of $1.93.
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.
