TMC the metals company (TMC) Q4 2024 earnings summary

Executive summary

• Announced a strategic shift to pursue commercial production permits for deep-sea mining through the U.S. regulatory regime (DSHMRA/NOAA) due to delays and uncertainty with the ISA process, while maintaining standing and rights with the ISA and sponsoring states.

• Achieved significant milestones since 2011, including two resource statements totaling 1.6 billion tonnes of nodules, over half a billion dollars raised, and successful test mining, processing, and environmental studies in the Clarion Clipperton Zone.

• Environmental studies and pilot tests indicate minimal and localized impacts from nodule collection, with ecosystem recovery observed within decades.

• U.S. political support and regulatory clarity seen as a major advantage, with applications to be submitted in Q2 2025.

• Achieved processing milestone with PAMCO, producing Ni-Cu-Co alloy and Mn silicate from deep-sea nodules.

Financial highlights

• Q4 2024 net loss was $16.1 million ($0.05/share), improved from $33.5 million ($0.11/share) in Q4 2023; FY 2024 net loss was $81.9 million ($0.25/share), up from $73.8 million ($0.26/share) in 2023.

• Exploration and evaluation expenses for FY 2024 were $50.6 million (vs. $49.8 million in 2023); G&A expenses rose to $30.6 million (from $22.5 million in 2023), mainly due to higher share-based compensation and consulting costs.

• Q4 2024 free cash outflow was $13.9 million, down from $15.6 million in Q4 2023; full-year free cash outflow was $44.0 million, down from $60.2 million in 2023.

• Year-end liquidity was $62 million ($48 million pro forma); cash and equivalents at December 31, 2024, were $63.0 million, with year-end liquidity (cash and credit facilities) at approximately $43 million.

• Net cash used in operations for FY 2024 was $59.6 million; net cash provided by financing activities was $40.7 million.

Outlook and guidance

• Applications for U.S. exploration and commercial recovery permits to be submitted in Q2 2025, with pre-feasibility study and environmental impact statement expected before submission.

• Company will maintain compliance with existing ISA contracts while pursuing the U.S. regulatory path.

• Service business opportunities are being explored, with potential contracts expected in the second half of the year.

• Company will not raise significant pre-production capital until regulatory certainty is achieved.

• Liquidity is believed sufficient to meet working capital and capital expenditure needs for at least the next 12 months.