TMC the metals company Inc. (TMC) Q3 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals operational and financial challenges, including a significant net loss and increased expenses, which are concerning. The Q&A session highlighted regulatory uncertainties and vague management responses, contributing to a negative sentiment. Although there is potential for funding and partnerships, the lack of clear timelines and the competitive market pressures further weigh down the outlook.
Key Financial Performance
Liquidity Approximately $165 million of liquidity today, inclusive of recent warrant exercises and over $50 million of potential additional proceeds from in-the-money warrants. This does not factor in the potential $48 million proceeds from the Korea Zinc warrants at a $7 strike price, nor the SOAC business combination warrants at $11.50, nor the warrants held by sponsoring stakes.
Net Loss Net loss of $184.5 million or $0.46 per share in Q3 2025 compared to a net loss of $20.5 million or $0.06 per share in Q3 2024. The increase in net loss is attributed to exploration and evaluation expenses, G&A expenses, and other items such as the change in the fair value of the royalty liability and Tonga warrant costs.
Exploration and Evaluation Expenses $9.6 million in Q3 2025, a decrease of $2.2 million compared to $11.8 million in Q3 2024. The decrease is not explicitly explained.
General and Administration Expenses $45.7 million in Q3 2025 compared to $8.1 million in Q3 2024, an increase of $37.6 million. This increase is mainly due to an increase in share-based compensation of $35 million and an increase of $2 million in professional and consulting fees.
Free Cash Flow Negative $11.5 million in Q3 2025 compared to negative $5.9 million in Q3 2024. The decline is primarily due to higher environmental, personnel, and corporate payments, partially offset by interest earned on the higher cash balance in 2025 and higher payments to Campaign 8 vendors made in the comparative period.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
First-ever application for a commercial recovery permit: The company has launched three applications with NOAA, including the first-ever application for a commercial recovery permit.
Technical reports and resource value: Published two SEC-compliant technical reports showing a total resource value of more than $23 billion.
Nodule-derived manganese sulfate production: Successfully converted nodule-derived manganese silicate into battery-grade manganese sulfate, demonstrating the ability to produce key metals for EV platforms.
Pivot to the United States: The company has shifted its focus to the U.S., with productive discussions with NOAA and the U.S. government, aiming for a Commercial Recovery Permit by 2027.
Partnership with Japan: Announced a partnership with Japan to develop rare earth minerals from seafloor muds, with pilot nodule collection trials planned for early 2027.
Regulatory progress with NOAA: NOAA confirmed that exploration applications are fully compliant and progressing through the certification stage.
Innovations in mining technology: Developed advanced buoyancy systems and sediment management technologies to minimize environmental impact during nodule collection.
Focus on U.S. mineral independence: Positioning the U.S. to reduce dependence on foreign sources for critical metals like manganese, cobalt, and nickel.
Building an industrial ecosystem: Creating a broader industrial ecosystem around nodule resources, including partnerships with U.S. automakers and battery makers.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Regulatory Hurdles: The company faces delays in NOAA's review of applications due to the U.S. government shutdown, which slowed progress on regulatory processes. Additionally, the permitting process involves multiple stages, including public comment periods and interagency reviews, which could further delay operations.
Economic Uncertainties: The company reported a significant net loss of $184.5 million in Q3 2025, compared to $20.5 million in Q3 2024. This includes increased general and administrative expenses and non-operating non-cash expenses, which could strain financial resources.
Supply Chain and Operational Risks: The company is reliant on advanced technologies and partnerships, such as with Allseas, for mining and processing operations. Any technical or operational failures in these partnerships could disrupt production timelines and increase costs.
Market and Competitive Pressures: The company is undervalued compared to peers and faces competitive pressures from other players in the critical minerals and deep-sea mining sectors. This could impact its ability to attract investment and secure market share.
Strategic Execution Risks: The company’s pivot to the U.S. market and reliance on public-private partnerships for resource development involve complex coordination and execution challenges. Any missteps could delay the achievement of strategic objectives.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Commercial Recovery Permit: The company is confident that its U.S. pivot will lead to a Commercial Recovery Permit in 2027. Discussions with NOAA and the U.S. government are productive, and NOAA's streamlined application review process is expected to facilitate this timeline.
Cash Position and Liquidity: The company has approximately $165 million in liquidity, with potential for over $400 million in incoming cash from warrant exercises. This robust cash position ensures no immediate need to tap public capital markets.
Commercial Production Timeline: The company is targeting commercial production for the fourth quarter of 2027.
Market Trends and Strategic Importance: The U.S. is critically dependent on foreign sources for metals like manganese, cobalt, and nickel. The company's resource could supply 300 years of manganese, 200 years of cobalt, and almost a century of nickel based on current U.S. consumption levels.
Japanese Partnership and Pilot Testing: The Hidden Gem vessel will participate in Japanese nodule collection trials near Minamitori Island in early January 2027. This will test technical readiness and planned equipment upgrades while advancing Japan's industry.
NOAA Regulatory Process: NOAA has confirmed that exploration applications are fully compliant and are in the certification stage. Following certification, an Environmental Impact Statement (EIS) and public comment period will occur before determining license issuance.
Economic Projections: Steady-state production from 2031 to 2043 is expected to generate nearly $600 per dry ton of nodules, with an EBITDA margin of 43% or $250 per dry ton. The total estimated resource NPV is $23.6 billion, with projected revenue of $369 billion and EBITDA exceeding $200 billion over the life of the projects.
Technological Advancements: The company has achieved significant milestones, including the successful conversion of nodule-derived manganese silica into battery-grade manganese sulfate, demonstrating the feasibility of producing key metals for EV platforms.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:What is the total potential incoming cash if all warrants are exercised?
A:The total potential additional proceeds would be over $432 million, excluding some exercised in Q3 and October. This includes $11.50 strike price public and private warrants from the SOAC/DeepGreen business combination, expiring in September 2026. There are also over $50 million of in-the-money warrant proceeds and more potential cash inflow.
Q:Is the exploration work in Japan pro bono or paid?
A:The exploration work in Japan is not pro bono. Allseas has a direct contract with the foundation funding the program, and TMC will also receive financial benefits.
Q:How is NOAA streamlining its regulation process for exploration and commercial exploitation licenses?
A:NOAA is combining exploration and commercial exploitation licenses. Currently, an exploration license is required before a commercial recovery permit. TMC is unique as it already has a prepared commercial recovery permit application. NOAA is adjusting regulations to accommodate this, which benefits TMC.
Q:Will the exploration permit and production permit be granted simultaneously?
A:The exploration and production permits may not be granted simultaneously. However, the Q4 2027 production start date remains achievable. TMC and Allseas agree there is sufficient regulatory certainty to proceed with preparations, including ordering long lead-time items.
Q:Why is the term 'mining' used instead of 'harvesting'?
A:The term 'mining' is used, but TMC sometimes refers to it as 'collection.' The company believes the terminology reflects the unique nature of sea floor operations, which differ from traditional land-based mining.
Q:What opportunities exist for funding, permitting, and constructing refining facilities in the U.S.?
A:TMC sees opportunities for funding and permitting refining facilities in the U.S., especially given the gap in certain metals. The company has flexibility in product formats and has demonstrated expertise, such as producing manganese sulfate from nodule-derived intermediate manganese silicate. This positions TMC well for capital from the U.S. government or private markets.
Q:Review of Unclear Management Responses
A:Management avoided providing specific dates for the exploration permit approval and used vague language regarding the simultaneous granting of exploration and production permits. Additionally, while discussing refining facilities in the U.S., the response lacked detailed plans or timelines for funding and construction.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
America copper
America source
Benchmark Week
CFO statement
Chairman today
Commercial Recovery
Conference Florida
Conference LA
DSHMRA regulation
Day SEC
Department Interior
EIS NEPA
Florida event
Gem Japan
Gem vessel
Hidden Gem
Minamitori Island
NOAA application
NOAA government
Tokyo
application NOAA
application certification
application exploration
century
comment period
earth
exercise
exploration application
news
nodule collection
period NOAA
pivot
report
resource solution
review application
seafloor resource
work application
TMC Transcript
TMC the metals company Inc. (TMC) Q1 2026 Earnings Call Transcript
Unknown5-14
The earnings call lacked specific financial details, and key areas such as revenue, margins, and cash flow were not discussed. The emphasis on forward-looking statements and non-GAAP measures introduces uncertainty. However, there are no strong negative indicators or positive catalysts, leading to a neutral sentiment.
TMC the metals company Inc. (TMC) Q4 2025 Earnings Call Transcript
Unknown3-27
The earnings call presents mixed signals. Increased expenses and cash outflows are concerning, but the potential cost savings from the Brownsville hub and strategic developments like the pyro facility could offset these. The Q&A reveals uncertainties, particularly regarding permits and government support, which dampen optimism. The lack of specific guidance and concrete commitments further tempers expectations. Without a clear market cap, the stock's reaction remains uncertain, leading to a neutral prediction.
TMC the metals company Inc. (TMC) Q3 2025 Earnings Call Transcript
Unknown11-13
The earnings call reveals operational and financial challenges, including a significant net loss and increased expenses, which are concerning. The Q&A session highlighted regulatory uncertainties and vague management responses, contributing to a negative sentiment. Although there is potential for funding and partnerships, the lack of clear timelines and the competitive market pressures further weigh down the outlook.
TMC the metals company Inc. (TMC) Q2 2025 Earnings Conference Call Transcript
Positive8-14
The earnings call presents a positive outlook, with a clear regulatory pathway, strengthened cash position, and strategic partnerships. Despite increased G&A expenses, exploration costs have decreased, and free cash flow has improved. The Q&A session reveals strong government support, minimal regulatory risks, and potential U.S. funding, enhancing future prospects. The company's focus on critical minerals and positive geopolitical surprises further bolster sentiment. However, some uncertainties remain regarding CapEx details and funding timelines, slightly tempering the outlook. Overall, the stock price is likely to experience a positive movement in the short term.
TMC Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
