Trading activity in The Metals Company (TMC, Financial) has intensified, with a significant surge in call options. A total of 24,624 call options were traded, which is 1.6 times the anticipated volume, while the implied volatility rose nearly 2 points, reaching 127.02%. The most actively traded contracts are the July 2025 options at strike prices of $8 and $7.5, collectively accounting for around 5,600 contracts. The Put/Call Ratio stands at a low 0.12, underscoring a strong preference for call options. Investors are eyeing the upcoming earnings report, expected on August 14th.
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 $8.18 with a high estimate of $12.00 and a low estimate of $5.50. The average target implies an upside of 7.84% from the current price of $7.59. 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 1.6, 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.
