TMC the metals company (TMC) Q2 2024 earnings summary

Executive summary

• Liquidity improved to $48.3 million available from credit facilities as of August 2024, with $2.6 million raised through ATM at $1.61/share and a capital-light strategy minimizing dilution.

• Net loss of $20.2 million ($0.06/share) for Q2 2024, up from $14.1 million ($0.05/share) in Q2 2023, driven by higher exploration, evaluation, and administrative expenses.

• Board strengthened with two new directors: Steve Jurvetson (technology) and Brendan May (sustainability).

• Achieved world-first production of cobalt and nickel sulfate from deep-seafloor nodules, supporting battery-grade ambitions.

• Geopolitical and regulatory momentum as major economies intensify focus on seafloor minerals and U.S. allocates funding for nodule processing feasibility.

Financial highlights

• Q2 2024 net loss: $20.2 million (6¢/share) vs. $14.1 million (5¢/share) in Q2 2023; net cash used in operating activities: $12.1 million.

• Exploration and evaluation expenses: $12.4 million in Q2 2024, up from $8.1 million, mainly due to increased engineering and share-based compensation.

• G&A expenses: $7.9 million in Q2 2024, up from $5.1 million, driven by higher share-based comp and personnel costs.

• Cash at June 30, 2024, was $0.5 million, with total assets of $60.6 million and total liabilities of $70.3 million.

• Free cash outflow was $12.2 million in Q2 2024, compared to $8.5 million in Q2 2023.

Outlook and guidance

• Application for exploitation contract to be submitted before March 2025 ISA session; one-year review expected.

• First offshore production targeted for end of Q1 2026, pending regulatory approval.

• Feasibility update anticipated by November 2024, with more details to be shared in the next report.

• Liquidity, including credit facilities, expected to cover needs for at least 12 months.

• Ongoing strategic discussions and disciplined use of ATM for future capital needs.