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NEW YORK - TMC the metals company Inc. (NASDAQ: TMC), a critical metals explorer with a market capitalization of $579 million, has announced the formal initiation of a process to apply for exploration and commercial recovery licenses for deep-sea minerals under the U.S. Deep Seabed Hard Mineral Resources Act (DSHMRA). The company’s stock has shown strong momentum, delivering a 58% return over the past six months. InvestingPro analysis reveals 8 additional key insights about TMC’s market performance and financial health. The company’s subsidiary, The Metals Company USA LLC (TMC USA), is engaging with the National Oceanic and Atmospheric Administration (NOAA) to secure permits that would allow for the extraction of polymetallic nodules from the seabed in the Clarion Clipperton Zone (CCZ). According to InvestingPro data, analysts have set price targets ranging from $3.75 to $4.20, suggesting potential upside from current levels, though investors should note the company’s current Fair Value assessment indicates it may be overvalued.
Gerard Barron, CEO of The Metals Company, stated that despite a decade-long collaboration with the International Seabed Authority (ISA), the body has not adopted exploitation regulations, prompting the company to seek a U.S. regulatory path. TMC USA plans to submit applications to NOAA in the second quarter of 2025.
The DSHMRA, enacted in 1980 and further implemented through regulations by NOAA, provides a framework for U.S. entities to pursue mineral resource activities in international waters. NOAA’s approach is described as science-based, offering regulatory flexibility while ensuring environmental protection. The agency assists applicants with pre-application consultations and uses a Programmatic Environmental Impact Statement (EIS) for the CCZ to inform permitting decisions.
TMC USA has requested a pre-application consultation with NOAA and is confident that the U.S. regulatory framework will offer a predictable and enforceable path forward. The company remains committed to following the paths that best serve all its stakeholders.
The Metals Company focuses on extracting critical metals from seafloor polymetallic nodules, with the dual mission of supplying metals for infrastructure and batteries and promoting the recycling of these metals. It holds exploration and commercial rights in the CCZ, sponsored by the governments of Nauru and Tonga. While the company shows promise in its strategic positioning, InvestingPro data indicates current challenges, including negative EBITDA of -$97.82 million in the last twelve months. For a deeper understanding of TMC’s financial position and growth potential, investors can access the comprehensive Pro Research Report, which provides detailed analysis of the company’s fundamentals and market position.
This announcement is based on a press release statement from The Metals Company. The company cautions that forward-looking statements in the press release are subject to various factors, including regulatory and environmental challenges, and there is no assurance that the company will achieve its plans as described.
In other recent news, TMC the metals Co Inc. announced it has regained compliance with Nasdaq’s minimum bid price requirement. This achievement came after TMC’s shares maintained a closing bid price of $1.00 or higher for ten consecutive business days. Previously, the company had received a non-compliance notice from Nasdaq, as its shares fell below the required $1.00 threshold for 34 consecutive trading days. The compliance notice confirms that TMC has addressed the deficiency, ensuring its shares remain tradable on the Nasdaq Stock Market and avoiding potential delisting procedures. This development is significant for TMC, as maintaining a listing on a major exchange is crucial for attracting institutional investors. The Vancouver-based company had previously faced similar compliance issues in December 2022 and April 2023 but managed to regain compliance each time. TMC intends to monitor its share price closely to ensure continued compliance with Nasdaq’s listing standards. The details of the regained compliance were outlined in an 8-K filing with the U.S. Securities and Exchange Commission.
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