TMC the metals company (TMC) Q3 2024 earnings summary

Executive summary

• Plans to submit NORI's exploitation contract application to the ISA on June 27, 2025, with a strategy to maximize shareholder value by delaying major capital spending until regulatory clarity is achieved.

• Completed pre-feasibility study for the NORI-D Project and advanced regulatory and technical milestones, including commercial-scale nodule processing trials in Japan.

• Raised $17.5 million in a registered direct offering in November 2024, with total liquidity (cash and credit) of approximately $63 million as of the filing date.

• Developing a new services business leveraging expertise in seafloor resource development, with advanced discussions and RFPs in the market.

• Over $500 million invested since inception in environmental research, resource definition, test mining, and processing.

Financial highlights

• Q3 2024 net loss was $20.5 million ($0.06/share), up from $12.5 million ($0.04/share) in Q3 2023.

• Exploration and evaluation expenses rose to $11.8 million from $7.9 million year-over-year, mainly due to increased share-based compensation and higher personnel costs.

• General and administrative expenses increased to $8.2 million from $4.6 million year-over-year.

• Cash used in operating activities for Q3 2024 was $5.7 million, down from $12.5 million in Q3 2023.

• Cash on hand at September 30, 2024, was $0.4 million, with $23.3 million raised from financing activities year-to-date.

Outlook and guidance

• Confident that cash on hand, recent offering proceeds, and $33.8 million undrawn credit will cover working capital and capex needs for at least 12 months.

• Quarterly cash use expected to remain below $5 million after application submission, with capital expenditures deferred until regulatory clarity.

• No further capital raised for vessel preparation or production until regulatory clarity; focus on cost control and capital-light strategy.

• Sufficient funds are expected to meet obligations over the next twelve months, but additional financing will be required for ongoing operations and project development.

• Strategy day to be announced before year-end to provide more details on project economics and services business.