TMC Provides First Quarter 2025 Corporate Update
- Secured $37M strategic investment through registered direct offering at $3.00 per share
- First company to submit commercial recovery permit application under U.S. law
- Exploration areas contain substantial resources: 1.635B wet tonnes of polymetallic nodules
- Presidential Executive Order supporting expedited permitting process
- Successful processing trial with PAMCO: 450 tonnes of calcine into 35 tonnes of NiCuCo alloy
- Net loss of $20.6M in Q1 2025
- Low cash position of $2.3M at quarter end
- Termination of $25M Allseas Group facility
- Significant share dilution through new offering of 12.3M shares
Insights
TMC secures $37M investment and files first-ever deep-sea mining permit amid improved U.S. regulatory landscape, though financial position remains challenging.
TMC has reached a pivotal moment in Q1 2025 with several significant developments that could accelerate its path to commercializing deep-sea mineral extraction. The company has secured
The company's financial situation demands attention: TMC burned through
The regulatory landscape has shifted dramatically in TMC's favor with President Trump's Executive Order on deep-seabed mining, which directs expedited permitting processes. TMC has capitalized on this by submitting the first-ever application for commercial recovery under U.S. law—covering 25,160 square kilometers in the Clarion Clipperton Zone—two months ahead of schedule. The company also applied for two exploration licenses covering nearly 200,000 square kilometers with estimated resources of 1.635 billion wet tonnes of polymetallic nodules.
On the operational front, TMC's partner PAMCO successfully demonstrated nodule processing at scale, producing 35 tonnes of NiCuCo alloy and 320 tonnes of Mn silicate from 450 tonnes of calcine. Additionally, the company strengthened its team by hiring Rutger Bosland, who previously led the development of their nodule collection system at Allseas.
The company expects to complete its Preliminary Feasibility Study next quarter, incorporating new assumptions based on the U.S. permitting strategy. This will provide more clarity on potential valuation across TMC's total estimated resource, which could be substantial given their claims of 15.5 million tonnes of nickel, 12.8 million tonnes of copper, 2.0 million tonnes of cobalt, and 345 million tonnes of manganese within their exploration areas.
NEW YORK, May 14, 2025 (GLOBE NEWSWIRE) -- TMC the metals company Inc. (Nasdaq: TMC) (“TMC” or “the Company”), a leading explorer of the world’s largest undeveloped resource of critical metals essential to energy, defense, manufacturing, and infrastructure, today provided a corporate update and first quarter results for the period ending March 31, 2025.
Q1 2025 Financial Highlights
- Total liquidity of approximately
$43.8 million at March 31, 2025, including cash of$2.3 million - ERAS/Barron facility increased from
$38 million to$44 million ($41.5 million available) as previously announced; and - Allseas Group SA affiliate facility of
$25 million was terminated by mutual agreement in Q1 2025 as maturity was approaching and no amounts were outstanding, while the maturity of the$7.5 million Allseas Working Capital loan was extended from April to September 2025
- ERAS/Barron facility increased from
$9.3 million cash used in operations for the quarter ended March 31, 2025- Net loss of
$20.6 million and net loss per share of$0.06 for the quarter ended March 31, 2025
Registered Direct Offering
- Registered Direct Offering resulting in expected gross proceeds of
$37 million through the issuance of 12.3 million common shares at$3.00 per share - The Registered Direct Offering is led by by Michael Hess, Chief Investment Officer of Hess Capital, Brian Paes-Braga, Managing Partner at SAF Group and Head of SAF Growth, and includes the participation of an existing strategic TMC investor
- Each share is accompanied by a Class C warrant to purchase one additional share at an exercise price of
$4.50 per share - Warrants have a three-year term with mandatory exercise if shares trade above
$7.00 per share for 20 consecutive days
Gerard Barron, Chairman & CEO of The Metals Company, commented: “The first quarter of 2025 marked a turning point, not just for TMC, but for the deep-sea critical minerals industry. President Trump signed a landmark Executive Order, ‘Unleashing America’s Offshore Critical Minerals and Resources’, and TMC USA submitted the world’s first application for commercial recovery permit, two months ahead of schedule, and two exploration license applications under U.S. law. These applications offer the United States a path to mineral independence in nickel, copper, cobalt, and manganese—metals critical for energy, defense, manufacturing and infrastructure. We have invested over a half a billion dollars and more than a decade preparing for this moment.”
“While the milestones achieved in the last two months are historic, we are just getting warmed up and are very excited about some key catalysts in the near term.
Later this quarter, we expect further detail from the Commerce Department and NOAA on tangible actions to expedite the application review processes and we look forward to providing a more definitive step-by-step permitting timeline to the market soon after.”
“I am also pleased to announce that our PFS will be completed next quarter for the commercial recovery area over which we applied, allowing us to reflect new assumptions made possible by our new U.S. permitting strategy. Further, with this path to commercial production now coming into focus, we intend to provide more clarity on the potential valuation across our total estimated resource, well beyond NORI-D which has historically been our valuation anchor.”
“With the eyes of the world now firmly on this emerging industry, we’re also proud to welcome new strategic investors like Michael Hess to the business, who along with Brian Paes-Braga anchored our last announced financing. Mr Hess brings over 15 years of offshore exploration and production experience, as both an investor and operator, along with deep relationships across the U.S. At the same time, we will continue to discuss alternative financing sources with the U.S. government and potential strategic partners to prepare for commercial production, as the equity round just announced is more than sufficient to get us past the expected review process on a commercial recovery permit.”
Operational Highlights
TMC Announces
On May 12, 2025, we announced a
TMC USA Submits Application for Commercial Recovery of Deep-Sea Minerals in the High Seas Under U.S. Seabed Mining Code
On April 29, 2025, we announced that TMC USA had submitted the first-ever application for a commercial recovery permit and applications for two exploration licenses under the Deep Seabed Hard Mineral Resources Act of 1980 (DSHMRA), ahead of its original June 27, 2025, application target for commercial recovery. The application area for the commercial recovery permit, TMC USA-A_2, covers a total combined area of 25,160 square kilometers in the Clarion Clipperton Zone which includes areas that contain the Company’s already indicated and measured resources. TMC USA also submitted two exploration license applications: TMC USA-A and TMC USA-B with a total combined area of 199,895 square kilometers. The Company believes the TMC USA-A and USA-B exploration areas contain SEC SK 1300-compliant resources of 1.635 billion wet tonnes of polymetallic nodules supported by existing issued technical report summaries, with an additional estimated 500 million tonnes of potential exploration upside. The resources are estimated to contain approximately 15.5 million tonnes of nickel, 12.8 million tonnes of copper, 2.0 million tonnes of cobalt, and 345 million tonnes of manganese.
Rutger Bosland, Pioneering Engineer and Technical Lead on Development of TMC’s Nodule Collection System, Joins Company to Drive Commercial Readiness
On April 15, 2025, we announced that Rutger Bosland, the engineer and technical lead who oversaw the design, build, and successful test deployment of Allseas’ integrated nodule collection system, had joined the Company as Chief Innovation and Offshore Technology Officer (CIOTO). Rutger will lead offshore innovation and efforts to scale our technologies for commercial production. He brings world-class expertise in deep-sea mining, naval architecture, and offshore operations to TMC, having led a team of 80+ engineers in developing TMC’s nodule collection system, and Allseas’ program to scale-up nodule collection technology in preparation for TMC’s planned commercial operations.
TMC and PAMCO Achieve Nodule Processing Milestone, Unlocking Critical Battery & Steelmaking Materials at Existing Facilities
On February 18, 2025, we announced that our partner PAMCO had successfully smelted 450 tonnes of calcine into 35 tonnes of NiCuCo alloy and 320 tonnes of Mn silicate products, as part of the program of campaigns to process a 2,000-tonne sample of deep-seafloor polymetallic nodules at PAMCO’s Hachinohe Rotary Kiln Electric-Arc Furnace facility in Hachinohe, Japan, demonstrating the process at scale. The process data and operational experience gathered during the processing trial will inform expected definitive processing agreements between the parties.
Industry Update
President Trump Executive Order on Deep-Seabed Mining
On April 24, 2025, we welcomed an Executive Order signed by President Trump to create a robust domestic supply for critical minerals derived from seabed resources. The Executive Order, ‘Unleashing America’s Offshore Critical Minerals and Resources’, directs the Commerce Secretary to implement an expedited permitting process under DSHMRA, a statute passed by Congress in 1980. In addition to directing the International Development Finance Corporation, Export-Import Bank and Trade and Development Agency to identify tools to support this new industry, the order instructs the Departments of Defense and Energy to assess the use of the National Defense Stockpile for nodule-derived minerals and entering into offtake agreements for the procurement of these minerals. These departments are also directed to review and revise domestic processing capabilities for seabed mineral resources and Defense Production Act authorities. The executive order also issued a directive for a joint assessment, led by the Secretaries of Commerce, State, Interior, and Energy in coordination with U.S. partners and allies, on the feasibility of an international seabed benefit-sharing mechanism.
TMC CEO Testifies to House Committee on Natural Resources: Deep-Sea Minerals Key to U.S. Industrial Future
On April 29, 2025, TMC CEO Gerard Barron testified before the U.S. House Natural Resources Subcommittee on Oversight and Investigations at a hearing titled, “Exploring the Potential of Deep-Sea Mining to Expand American Mineral Production”. In his remarks, Mr. Barron emphasized that the United States must reclaim its leadership in deep-seabed mineral development to strengthen energy and supply chain security and reinforce national defense and manufacturing. Also participating as an expert witness during the hearing was Dr Thomas Peacock of MIT, one of the world’s leading experts on deep-sea sediment plume dynamics, who asked the Committee to be wary of misinformation.
Financial Results Overview
At March 31, 2025, we held cash of approximately
We reported a net loss of approximately
General and administrative expenses were
Conference Call
We will hold a conference call today at 4:30 p.m. EDT to provide an update on recent corporate developments and first quarter 2025 financial results.
First Quarter 2025 Conference Call Details
| Date: | Wednesday, May 14, 2025 |
| Time: | 4:30 p.m. ET |
| Audio-only Dial-in: | Register Here |
| Virtual webcast with slides: | Register Here |
The virtual webcast will be available for replay in the ‘Investors’ tab of the Company’s website under ‘Investors’ > ‘Media’ > ‘Events and Presentations’, approximately two hours after the event.
The Metals Company is an explorer of lower-impact critical metals from seafloor polymetallic nodules, on a dual mission: (1) supply metals for energy, defense, manufacturing and infrastructure with net positive impacts compared to conventional production routes and (2) trace, recover and recycle the metals we supply to help create a metal commons that can be used in perpetuity. The Company has conducted more than a decade of research into the environmental and social impacts of offshore nodule collection and onshore processing. More information is available at www.metals.co.
Contacts
Media | media@metals.co
Investors | investors@metals.co
Forward-Looking Statements
This press release contains “forward-looking” statements and information within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “believes,” “could,” “expects,” “may,” “plans,” “possible,” “potential,” “will” and variations of these words or similar expressions, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statements with respect to the Company’s strategy to pursue commercial recovery of seafloor polymetallic nodules under the U.S. regulatory regime; the outcome and timing of regulatory reviews of its applications submitted pursuant to the Deep Seabed Hard Mineral Resources Act of 1980 (DSHMRA); the potential adoption of final exploitation regulations by the International Seabed Authority (ISA); the impact of recent executive action by the U.S. government in support of domestic seabed mineral development; the expected use of proceeds from recent financings; the timing and success of feasibility studies and processing trials; and the Company’s operational and financial plans, including the potential development of a commercial-scale offshore nodule collection system and related onshore processing facilities. The Company may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various factors, including, among other things: the outcome and timing of regulatory reviews by NOAA under DSHMRA; the ability to obtain an exploitation contract from the ISA or permits from the U.S. government; risks related to the Company’s dual-path permitting strategy; changes in environmental, mining and other applicable laws and regulations; the timing and results of environmental assessments and technical studies; the development, testing and scaling of offshore collection systems; risks related to strategic partnerships and technology sharing; uncertainties relating to processing nodules at commercial scale; metals price volatility; the sufficiency of the Company’s cash and ability to secure additional financing on acceptable terms or at all; dependence on third parties, including Allseas Group S.A. and PAMCO; the outcome of any pending or future litigation; and other risks and uncertainties described in greater detail in the section entitled “Risk Factors” in the Company’s 2024 Annual Report on Form 10-K and in subsequent Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 27, 2025. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company expressly disclaims any obligation to update any forward-looking statements contained herein, whether because of any new information, future events, changed circumstances or otherwise, except as otherwise required by law.
| TMC the metals company Inc. | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| (in thousands of US Dollars, except share amounts) | ||||||
| (Unaudited) | ||||||
| ASSETS | As at March 31, 2025 | As at December 31, 2024 | ||||
| Current | ||||||
| Cash | $ | 2,346 | $ | 3,480 | ||
| Receivables and prepayments | 5,012 | 1,851 | ||||
| 7,358 | 5,331 | |||||
| Non-current | ||||||
| Exploration assets | 42,951 | 42,951 | ||||
| Equipment | 713 | 771 | ||||
| Software development costs | 1,958 | 1,928 | ||||
| Right-of-use asset | 3,337 | 3,814 | ||||
| Investment | 8,168 | 8,203 | ||||
| 57,127 | 57,667 | |||||
| TOTAL ASSETS | $ | 64,485 | $ | 62,998 | ||
| LIABILITIES | ||||||
| Current | ||||||
| Accounts payable and accrued liabilities | 45,245 | 42,754 | ||||
| Short-term debt | 9,978 | 11,775 | ||||
| 55,223 | 54,529 | |||||
| Non-current | ||||||
| Deferred tax liability | 10,675 | 10,675 | ||||
| Royalty liability | 14,000 | 14,000 | ||||
| Warrants liability | 1,353 | 912 | ||||
| 26,028 | 25,587 | |||||
| TOTAL LIABILITIES | $ | 81,251 | $ | 80,116 | ||
| EQUITY | ||||||
| Common shares(unlimited shares, no par value – issued: 356,617,022 (December 31, 2024 –340,708,460)) | 495,804 | 477,217 | ||||
| Special Shares | - | - | ||||
| Additional paid in capital | 140,656 | 138,303 | ||||
| Accumulated other comprehensive loss | (1,203 | ) | (1,203 | ) | ||
| Deficit | (652,023 | ) | (631,435 | ) | ||
| TOTAL EQUITY | (16,766 | ) | (17,118 | ) | ||
| TOTAL LIABILITIES AND EQUITY | $ | 64,485 | $ | 62,998 | ||
| TMC the metals company Inc. | ||||||
| Condensed Consolidated Statements of Loss and Comprehensive Loss | ||||||
| (in thousands of US Dollars, except share and per share amounts) | ||||||
| (Unaudited) | ||||||
| Three months ended March 31, 2025 | Three months ended March 31, 2024 | |||||
| Operating expenses | ||||||
| Exploration and evaluation expenses | $ | 9,515 | $ | 18,123 | ||
| General and administrative expenses | 8,500 | 6,559 | ||||
| Operating loss | 18,015 | 24,682 | ||||
| Other items | ||||||
| Equity-accounted investment loss | 35 | 78 | ||||
| Change in fair value of warrants liability | 441 | 531 | ||||
| Foreign exchange loss (gain) | 1,095 | (266 | ) | |||
| Interest income | (19 | ) | (102 | ) | ||
| Fees and interest on borrowing and credit facilities | 1,021 | 271 | ||||
| Loss and comprehensive loss for the period | $ | 20,588 | $ | 25,194 | ||
| Loss per share | ||||||
| - basic and diluted | $ | 0.06 | $ | 0.08 | ||
| Weighted average number of Common Shares outstanding – basic and diluted | 345,346,393 | 311,521,854 | ||||
| TMC the metals company Inc. | |||||||||||||||||||||||
| Condensed Consolidated Statements of Changes in Equity | |||||||||||||||||||||||
| (in thousands of US Dollars, except share amounts) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three months ended March 31, 2025 | Common Shares | Special Shares | Additional Paid in Capital | Accumulated Other Comprehensive Loss | Deficit | Total | |||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||
| December 31, 2024 | 340,708,460 | $ | 477,217 | $ | - | $ | 138,303 | $ | (1,203 | ) | $ | (631,435 | ) | $ | (17,118 | ) | |||||||
| Issuance of shares and warrants under Registered Direct Offering, net of expenses | 5,000,000 | 2,237 | - | 2,763 | - | - | 5,000 | ||||||||||||||||
| Shares issued as per At-the-Market Equity Distribution Agreement | 2,975,226 | 5,562 | - | - | - | - | 5,562 | ||||||||||||||||
| Conversion of restricted share units, net of shares withheld for taxes | 7,933,336 | 10,788 | - | (10,788 | ) | - | - | - | |||||||||||||||
| Share-based compensation and Expenses settled with equity | - | - | - | 10,378 | - | - | 10,378 | ||||||||||||||||
| Loss for the period | - | - | - | - | - | (20,588 | ) | (20,588 | ) | ||||||||||||||
| March 31, 2025 | 356,617,022 | $ | 495,804 | $ | - | $ | 140,656 | $ | (1,203 | ) | $ | (652,023 | ) | $ | (16,766 | ) | |||||||
| Three months ended March 31, 2024 | Common Shares | Special Shares | Additional Paid in Capital | Accumulated Other Comprehensive Loss | Deficit | Total | |||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||
| December 31, 2023 | 306,558,710 | $ | 438,239 | $ | - | $ | 122,797 | $ | (1,216 | ) | $ | (548,902 | ) | $ | 10,918 | ||||||||
| Issuance of shares and warrants under Registered Direct Offering, net of expenses | 4,500,000 | 7,447 | - | 1,553 | - | - | 9,000 | ||||||||||||||||
| Exercise of stock options | 120,000 | 144 | - | 46 | - | - | 190 | ||||||||||||||||
| Conversion of restricted share units, net of shares withheld for taxes | 7,112,673 | 8,601 | - | (8,601 | ) | - | - | - | |||||||||||||||
| Share-based compensation and Expenses settled with equity | - | - | - | 6,896 | - | - | 6,896 | ||||||||||||||||
| Loss for the period | - | - | - | - | - | (25,194 | ) | (25,194 | ) | ||||||||||||||
| March 31, 2024 | 318,291,383 | $ | 454,431 | $ | - | $ | 122,691 | $ | (1,216 | ) | $ | (574,096 | ) | $ | 1,810 | ||||||||
| TMC the metals company Inc. | |||||||
| Condensed Consolidated Statements of Cash Flows | |||||||
| (in thousands of US Dollars) | |||||||
| (Unaudited) | |||||||
| Three months ended March 31, 2025 | Three months ended March 31, 2024 | ||||||
| Cash provided by (used in) | |||||||
| Operating activities | |||||||
| Loss for the period | $ | (20,588 | ) | $ | (25,194 | ) | |
| Items not affecting cash: | |||||||
| Amortization | 58 | 85 | |||||
| Accrued interest on credit facilities | 558 | ||||||
| Lease expense | 477 | 477 | |||||
| Share-based compensation and expenses settled with equity | 10,378 | 6,896 | |||||
| Equity-accounted investment loss | 35 | 78 | |||||
| Change in fair value of warrants liability | 441 | 531 | |||||
| Unrealized foreign exchange movement | 2,345 | (293 | ) | ||||
| Interest paid short-term debt | (103 | ) | - | ||||
| Changes in working capital: | |||||||
| Receivables and prepayments | (3,161 | ) | 25 | ||||
| Accounts payable and accrued liabilities | 213 | 5,543 | |||||
| Net cash used in operating activities | (9,347 | ) | (11,852 | ) | |||
| Investing activities | |||||||
| Acquisition of equipment and software | (70 | ) | (340 | ) | |||
| Net cash used in investing activities | (70 | ) | (340 | ) | |||
| Financing activities | |||||||
| Proceeds from registered direct offering | 5,000 | 9,000 | |||||
| Expenses paid for registered direct offering | (472 | ) | (142 | ) | |||
| Proceeds from Shares issued from ATM | 5,562 | - | |||||
| Repayment of Debt | (1,797 | ) | - | ||||
| Proceeds from exercise of stock options | - | 190 | |||||
| Net cash provided by financing activities | 8,293 | 9,048 | |||||
| Decrease in cash | $ | (1,124 | ) | $ | (3,144 | ) | |
| Impact of exchange rate changes on cash | (10 | ) | 293 | ||||
| Cash - beginning of period | 3,480 | 6,842 | |||||
| Cash - end of period | $ | 2,346 | $ | 3,991 | |||
FAQ
What was TMC's net loss for Q1 2025?
How much did TMC raise in their latest strategic investment?
What is the size of TMC's commercial recovery permit application area?
How much mineral resources does TMC estimate in their exploration areas?
What was TMC's cash position at the end of Q1 2025?
