Last close As at 05/08/2026
USD4.02
▲ 0.07 (1.77%)
Market capitalisation
USD1,742m
Research: Metals & Mining
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.
| 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 |
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).
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’.
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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Research: TMT
Datatec reported strong growth in underlying volume, gross profit and adjusted EBITDA in H126, driving a 43% year-on-year increase in underlying EPS (uEPS). The company has benefited from growing demand for cybersecurity and the start of technology refreshes driven by AI adoption. These structural growth drivers support a positive outlook for the remainder of FY26 and into FY27, with management sounding the most optimistic it has in recent years. We have upgraded our forecasts to reflect better operational performance and the positive demand environment, lifting uEPS by 18.2% for FY26, 21.9% for FY27 and 24.6% for FY28.