TMC the metals company (TMC) Q1 2025 earnings summary

Executive summary

• Achieved historic milestones with the first-ever U.S. applications for commercial deep-sea mineral recovery and two exploration licenses, submitted ahead of schedule, covering 199,895 sq km and 25,160 sq km, respectively.

• Raised $37 million in a registered direct offering in May 2025, strengthening liquidity and supporting operations beyond the commercial recovery permit milestone.

• Welcomed new executive leadership, including Rutger Bosland as Chief Innovation and Offshore Technology Officer, and reinforced partnerships with Allseas and PAMCO.

• U.S. regulatory and political support strengthened by an Executive Order expediting seabed mining permits and encouraging domestic processing.

• Remains pre-revenue, with no commercial production or exploitation contracts yet secured.

Financial highlights

• Q1 2025 net loss of $20.6 million ($0.06/share), improved from $25.2 million ($0.08/share) in Q1 2024, driven by lower exploration expenses.

• Exploration and evaluation expenses decreased to $9.5 million from $18.1 million year-over-year, mainly due to reduced mining and development costs.

• General and administrative expenses rose to $8.5 million from $6.6 million, primarily from higher share-based compensation.

• Net cash used in operating activities was $9.3 million, down from $11.8 million in Q1 2024; free cash flow was negative $9.4 million, improved from negative $12.1 million.

• Total assets at $64.5 million and total liabilities at $81.3 million as of March 31, 2025.

Outlook and guidance

• Expectation that NOAA will deem applications substantially compliant and complete this quarter, initiating the next stage of technical environmental review.

• Pre-feasibility study (PFS) for the commercial recovery area to be completed in Q3 2025, reflecting new U.S. permitting assumptions and a capital-light approach.

• Proceeds from recent capital raise expected to fund operations through the commercial recovery permit milestone.

• Additional financing will be required to fund continued operations and commercialization efforts.

• Plans to provide more detailed valuation across the total estimated resource portfolio beyond NORI.