TMC the metals co., Inc. Q1 FY2024 earnings call

• Welcomed Steve Jurvetson to the Board as Vice Chairman and Strategic Advisor. • Total liquidity stood at $49 million as of March 31, 2024, with $2.9 million drawn from unsecured credit facilities. • Uploaded the largest environmental data submission to the International Seabed Authority from 22 offshore campaigns to the NORI-D Area. • Completed milestones including SEC compliant resource statements, pyrometallurgical processing pilot, and integrated pilot system test. • Focus on environmental impact assessment, regulatory progress, and industry headlines. • Regulatory progress: Consolidated regulatory text released in late February, aiming to launch exploitation contract application post-July 2024 ISA meeting. • Project economics: Initial NPV of $6.8 billion in 2021, updated NPV with current prices ~$11.5 billion. • Financial results: Net loss of $25.2 million in Q1 2024, net cash used in operating activities $11.9 million, free cash flow negative $12.1 million.

No specific breakdown of product segments with revenue contributions provided in the transcript.

• Expect solid progress at ISA meetings, aiming to launch exploitation contract application post-July 2024 meeting. • Need incremental $35 million to $45 million to launch the application, with $2.9 million drawn from credit facilities. • Pre-feasibility work ongoing with teams in Japan and the Netherlands, on track.

• Activist-driven speculation about environmental impacts. • Uncertainty in regulatory approval process with potential back and forth in the Legal and Technical Commission. • Commodity price volatility affecting project economics.

Q: How do we expect the ISA meetings to go this year? Specifically, what do we expect in July meeting? And when are all the rules and regs going to be passed?

A: Expect solid progress when the ISA meets again, with regulations drawing to a robust final version and aiming to lodge the application post-July 2024 session.

Q: Do you know who is pushing this moratorium to Tesla and GM? Is it an NGO? Comments on Biden's Chinese EV tariffs and Trump's comments? Timeline for Chinese entities?

A: Shareholder proposals for GM and Tesla are NGO-driven; science will continue to speak for itself; Chinese entities plan collector trials next year and expect production by the end of the decade.

Q: Liquidity inclusive of application demands? Timing for pre-feasibility work and final agreements with PAMCO and Allseas?

A: Liquidity is good for 12 months to meet working capital and capital expenditure needs; pre-feasibility work is ongoing with teams in Japan and the Netherlands, and $35M to $45M is needed to launch the application.

Q: Does the company need the U.S. Senate to ratify the UN Convention to succeed?

A: No, but ratification shows U.S. commitment, and the U.S. can partner with TMC to compete in the space.

Q: Where is the company spending time on strategic partnerships?

A: Spending time in Asia, particularly Indonesia, and Japan, focusing on utilizing existing infrastructure for processing nodules and collaborating with partners like PAMCO.