Currency in USD
Last close As at 09/06/2023
USD0.79
▲ 0.09 (12.29%)
Market capitalisation
USD221m
The Metals Company (TMC) is looking to commercially recover polymetallic nodules from the deep seabed to provide key metals (such as nickel, cobalt, copper and manganese) required for the electrification of the automotive sector, primarily in batteries. These early field trials are another milestone successfully negotiated, as they de-risk the unique ‘mining’ equipment developed by TMC and partner, Allseas. The trials will also provide enhanced environmental information as TMC moves towards applying for a commercial licence.
The Metals Company |
Positive on-site field trials of mining equipment |
Update on field trials |
Metals and mining |
12 October 2022 |
Share price performance Business description
Analyst
The Metals Company is a research client of Edison Investment Research Limited |
The Metals Company (TMC) is looking to commercially recover polymetallic nodules from the deep seabed to provide key metals (such as nickel, cobalt, copper and manganese) required for the electrification of the automotive sector, primarily in batteries. These early field trials are another milestone successfully negotiated, as they de-risk the unique ‘mining’ equipment developed by TMC and partner, Allseas. The trials will also provide enhanced environmental information as TMC moves towards applying for a commercial licence.
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/21 |
0.0 |
(107.9) |
(52.7) |
0.0 |
N/A |
N/A |
12/22e |
0.0 |
(40.0) |
(14.2) |
0.0 |
N/A |
N/A |
12/23e |
0.0 |
(40.0) |
(9.1) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
In September, the International Seabed Authority recommended that TMC started pilot nodule-collection system trials in the NORI-D block of the deep-sea Clarion-Clipperton Zone. The company announced the first successful pilot scale nodule collection with a 60-minute operation, in which c 14t of nodules were collected from the seafloor and transported to the surface via a 4km riser system. Using compressed air, the journey from the seafloor to surface took 12 minutes. The nodules were separated in a cyclone and transferred to the surface production vessel, the Hidden Gem, with the seawater returned at depth. This trial builds on the previous testing in the North Sea and provides positive test results at the full depth required for commercial operation. This is the first successful integrated system for nodule collection undertaken in the region since the 1970s.
Alongside the collection equipment testing, a team of independent scientists from a range of leading research institutions is undertaking a major scientific monitoring operation. The tests involve over 50 subsea sensors and monitoring stations to assess the environmental impact. They are using sediment monitoring to provide information on the effect of the plume generated in the collection process. The findings from the data collected will be published in scientific literature next year, forming a key element of TMC’s expected environmental impact statement and environmental monitoring and management plan as part of its anticipated application for commercial collection operations.
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Sareum has announced that Sierra Oncology has decided to return the rights to the out-licensed CHK1 asset SRA737 (held in partnership with the CRT Pioneer Fund, CPF), following GlaxoSmithKline’s (GSK) $1.9bn acquisition of Sierra in July 2022. SRA737 was in-licensed by Sierra in 2016 and Sareum holds a 27.5% economic stake in the proceeds. Development work on SRA737 had been put on hold (due to funding constraints), but Sierra had recently indicated plans for renewed development as a potential combination therapy. This was before Sierra was picked up by GSK for its lead asset momelotinib (targeting myelofibrosis, a haematological cancer of the bone marrow). We see this latest development as a mild setback for Sareum given that GSK’s support could have accelerated development activity on the drug, triggering a $0.55m payment to Sareum from first patient dosing in a new clinical trial. However, it does provide Sareum and partner CPF with an opportunity to actively assess future development plans for SRA737, leveraging the positive clinical data.
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