TMC the metals company Inc. Q2 FY2025 earnings call

• Acknowledged the success of the first-ever Strategy Day on August 4, 2025, with participation from various stakeholders. - Renewed and strengthened agreements with Nauru and Tonga, reaffirming a science-based approach. - Announced a $85 million strategic investment from Korea Zinc. - Added Michael Hess and Alex Spiro to the Board. - Made regulatory progress with NOAA, including full compliance on exploration applications in August 2025, moving to the next stage in permitting. - Detailed the PFS, including estimated recoverable nodules, production start date, and offshore/onshore production requirements.

The combined project had a net present value (NPV) of $23.6 billion. The pre-feasibility study (PFS) for NORI-D had an NPV of $5.5 billion, with an estimated 164 million wet tons of recoverable nodules, production starting in Q4 2027, and steady-state annual production of 10.8 million tons of wet nodules. The initial assessment (IA) for the rest of the resource had an NPV of $18.1 billion. Revenue mix is expected to be 45% from nickel products, 28% from manganese, 17% from copper, and 9% from cobalt.

• Anticipates first production in Q4 2027. - Focus on finalizing the agreement with Allseas to hit the production target. - Explore financing mix, including potential funding from U.S. government agencies for both offshore and onshore components. - Confident in the regulatory path due to U.S. government support, allowing the Board to start deploying capital.

• Regulatory uncertainties from both NOAA and ISA. - Supply chain issues that could impact production timeline. - Potential changes in administration affecting support for seabed mining projects.

Q: Now that the PFS is out, can you comment on work needed to get through feasibility and timeline?

A: Focus on finalizing the agreement with Allseas, targeting Q4 2027 production. Need to order longer lead time items and explore financing mix.

Q: On permitting under NOAA, what are next milestones?

A: Closing of comment period on proposed amendments, expected good news from regulator, daily contact with NOAA.

Q: Factors affecting progress to Q4 2027 production?

A: Government encouragement, supportive Board, strong partnership with Allseas, administration support.

Q: Breakdown of CapEx split with partners?

A: Still premature to give detailed breakdown, but priority for both TMC and Allseas.

Q: Funding for offshore and onshore?

A: Pursuing funding from U.S. government agencies for both, coordinated through National Energy Dominance Council.

Q: Difference between provisional and final approval?

A: Provisional approval would boost confidence, but legal process ensures robustness, with expected provisional approval by end of 2025 and final by Q4 2026.