The Metals Company — Changing tack; US licence application filed

The Metals Company (NASDAQ: TMC)

Last close As at 27/06/2025

USD6.81

−0.37 (−5.15%)

Market capitalisation

USD2,601m

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Research: Metals & Mining

The Metals Company — Changing tack; US licence application filed

President Trump’s recent executive order on offshore critical minerals and resources has reinvigorated American interest and regulatory activity in deep-sea mining using existing US legislation. The Metals Company (TMC) has since leveraged its leading position to file for commercial recovery and exploitation licences in the US rather than through the International Seabed Authority (ISA). With a mandated 60-day initial turnaround, the timeline for the full process is expected by mid-July, offering the potential for accelerated award and commencement of nodule collection. A licence award is arguably the key to TMC’s commercial success.

David Larkam

Written by

David Larkam

Analyst, Industrials

Nickel Refinery covered in dust_ Metal company

Metals and mining

Operational update and Q1 results

15 May 2025

Price $2.99
Market cap $1,065m

Net cash/(debt) at 31 March 2025

$(7.7)m

Shares in issue

358.7m
Code TMC
Primary exchange NASDAQ
Secondary exchange N/A
Price Performance
% 1m 3m 12m
Abs 4.9 59.7 95.4
52-week high/low $3.8 $0.7

Business description

The Metals Company is a deep-sea minerals exploration company focused on the collection, processing and refining of polymetallic nodules, containing nickel, copper and cobalt, found on the seafloor in the international waters of the Clarion-Clipperton Zone, 1,300 nautical miles off the coast of Southern California.

Next events

Q2 results

August 2025

Analyst

David Larkam
+44 (0)20 3077 5700

The Metals Company is a research client of Edison Investment Research Limited

Note: PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Year end Revenue ($m) PBT ($m) EPS ($) DPS ($) P/E (x) Yield (%)
12/23 0.0 (62.0) (20.00) 0.00 N/A N/A
12/24 0.0 (61.0) (18.00) 0.00 N/A N/A
12/25e 0.0 (40.0) (14.00) 0.00 N/A N/A

Filing of licence applications in the US

President Trump has signed an executive order, Unleashing America’s Offshore Critical Minerals and Resources, to promote the development of deep-sea mineral extraction, including the Clarion-Clipperton Zone (CCZ) in the United States Outer Continental Shelf. This is to be enacted through the issue of licences under existing Deep Seabed Hard Mineral Resources Act legislation. Note that the US is not a signatory to the United Nations Convention on the Law of the Sea and is therefore not bound by the ISA. The order also directs support from the US National Defense Stockpile and certain financial institutions to promote such activity, along with subsequent processing of minerals. TMC has submitted applications to the National Oceanic and Atmospheric Administration for a commercial recovery permit (25,160km²) and two exploration licences (199,895km²) in the CCZ (the total the area is equivalent to c 5% of the CCZ). The recovery licence block has total current indicated and measured resources of 11.3Mt of nickel, 9.5Mt of copper and 1.7Mt of cobalt and includes NORI-D area, which has been the focus of TMC’s development campaigns. Initial assessment of the applications is expected within 60 days (by mid-July), at which point a full timeline to award a commercial licence is expected. TMC no longer intends to pursue a licence through the ISA.

Q1 financials offer no surprises

TMC reported a loss of $20.6m in Q125. This included share-based payments of $10.4m, foreign exchange losses of $1.1m and fair value of warrants of $0.4m, suggesting an underlying loss from operations of $8.6m versus $18.1m in Q124. This was driven by a halving of exploration and evaluation expenses. Cash used in operations was $9.3m. At the end of the period, TMC had cash of $2.3m and short-term debt of $10.0m, along with liquidity of $43.8m.

Equity issue expands liquidity

TMC has raised $37m (gross) through the issue of 12.3m shares at $3.00/share. The shares also carry a warrant to purchase an additional share at an exercise price of $4.50/share. With the $43.8m in liquidity at the end of Q125, management believes TMC is fully funded through to permitting for commercial production.

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