TMC the metals company Inc. Q3 FY2025 earnings call

Key Points

• Company pivoted to The United States over seven months ago, with support from President Trump's executive order, NOAA applications, new investments, and published SEC-compliant technical reports showing over $23 billion in total resource value.
• Progress with NOAA continued, and tailwinds for critical minerals from capital providers were clear. Confident of a commercial recovery permit in 2027.
• Company has achieved multiple world firsts including SEC and Canadian compliant resource statements, PFS, reserves for a nodule project, and successful conversion of nodule-derived manganese silicate into battery-grade manganese sulfate.
• Innovations in mining equipment like Kawanda nozzles, advanced buoyancy, and sediment management systems to minimize impact and maximize pickup efficiency.
• Extensive investment in scientific research provides comprehensive deep-sea dataset, and processing flow sheet allows conversion of nodules to high-value products.

No specific product segment financial performance details provided in the transcript.

Forward-Looking Statements

• Confident of obtaining a commercial recovery permit in 2027.
• Cash position is strong with approximately $165 million of liquidity, no immediate need to tap public capital markets.
• Production targeted for Q4 2027, and regulatory process with NOAA is progressing with confidence despite prior shutdowns.

Risks

• Uncertainty in regulatory processes, including potential delays in NOAA's review and approval of applications.
• Dependence on successful execution of complex permitting and regulatory frameworks for seabed mining.

Q: What was the number for potential incoming cash if all warrants are exercised?

A: Total potential additional proceeds would be over $432 million, including public and private warrants from the SOAC Deep Green business combination.

Q: Is the Hidden Gem going to Japan pro bono?

A: Certainly not pro bono. Allseas will have a direct contract with the foundation funding the program, and TMC will get financial benefit.

Q: Will the exploration permit be granted at the same time as the production permit?

A: Even if sequential, it is consistent with the Q4 2027 production start date. The streamlined and consolidated process may accelerate potential grant of both, but still aligns with the production timeline.