The Metals Company — Q3 balance sheet strength positive

The Metals Company (NASDAQ: TMC)

Last close As at 14/11/2025

USD5.08

−0.09 (−1.74%)

Market capitalisation

USD2,102m

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Research: Metals & Mining

The Metals Company — Q3 balance sheet strength positive

The Metals Company’s (TMC’s) quarterly report provided no surprises as the company continues to progress its deep sea licensing application and associated operations. The cash position is significantly improved, ensuring sufficient funds for at least the next 12 months. Key remains the award of a licence and news of any progress from the US administration, which appears to be moving steadily forward.

David Larkam

Written by

David Larkam

Analyst, Industrials

Metals and mining

Q3 results

17 November 2025

Price $5.08
Market cap $2,101m

Net cash at 30 September 2025

$115.6m

Shares in issue

406.4m
Free float 57.0%
Code TMC
Primary exchange NASDAQ
Secondary exchange N/A
Price Performance
% 1m 3m 12m
Abs (51.6) (5.0) 440.6
52-week high/low $11.4 $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

FY25 preliminary results

February 2026

Analyst

David Larkam
+44 (0)20 3077 5700

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

Source: Company data. Note: PBT and EPS (fully dilted) are underlying excluding share-based payments or change in royalty liabilities.

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

Q325 results: No surprises

TMC reported a Q325 net loss of $184.5m, or $0.46 per share (Q324 net loss of $20.5m, or $0.06 per share). Q3 included share option charges of $37.9m and a change in the fair value of royalty liabilities of $131.0m. Underlying operating loss (pre share-based payments) was $17.5m (Q324: $17.1m) with an increase in professional fees ($4.6m versus $2.6m), reflecting the ongoing licensing process, against a reduction in exploration and evaluation expenses ($9.6m versus $11.8m).

Financial position strong – $165m of cash

Cash at the end of Q3 was $115.6m. Liquidity is currently $165m comprising of $121m in cash and $44m of undrawn unsecured credit facilities with a further $54m of warrants that are currently in-the-money. The accounts payable balance at 30 September was $46.8m, including $32.9m owed to Allseas, the majority of which could be settled in equity at TMC’s election. The CEO commented: ‘Given our robust cash position, I can assure you that we have no need anytime soon to tap the public capital markets.’ Management also noted that it sees a ‘pathway for more than $400m of incoming cash from warrant exercise’.

Key licensing process remains on track

The licensing process continues to make steady progress, despite some impact from the US federal shutdowns. The National Oceanic and Atmospheric Administration (NOAA) issued proposed amendments to its regulations for a new consolidated application procedure, allowing a single application for both an exploration licence and a commercial recovery permit. In addition, the NOAA has confirmed that TMC’s exploration applications are fully compliant. Hence, management continues to believe that commercial operations are on track to commence in Q427.

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