Mining Stocks: Risks and Opportunities for Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 07 2026
0mins
Should l Buy TMC?
Source: Fool
- TMC Overview: TMC The Metals Company focuses on collecting polymetallic nodules from the Pacific Ocean, currently valued at $2.7 billion with a 13.45% stock increase to $6.41; despite being pre-revenue, its eco-friendly mining approach may attract long-term investors.
- Importance of MP Materials: MP Materials operates the only large-scale rare-earth mine in the U.S., valued at $11 billion with an 8.49% stock increase to $61.35; it secured a $400 million investment from the Department of Defense and a $500 million partnership with Apple, ensuring stability in the U.S. rare-earth supply chain.
- USA Rare Earth Development: USA Rare Earth controls the Round Top deposit in Texas, valued at $3.2 billion with a 6.02% stock increase to $21.84; although still in the construction phase, it has raised $3.1 billion to support the establishment of a domestic rare-earth supply chain.
- Investment Outlook: While TMC, MP, and USA Rare Earth are all pre-revenue and face market volatility risks, their potential in the rare-earth and battery metal sectors makes them attractive for long-term investors.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TMC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TMC
Wall Street analysts forecast TMC stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 5.960
Low
6.50
Averages
8.33
High
11.00
Current: 5.960
Low
6.50
Averages
8.33
High
11.00
About TMC
TMC the metals company Inc. is a deep-sea minerals exploration company. The Company is focused on the collection and processing of polymetallic nodules found on the seafloor in international waters of the Clarion Clipperton Zone in the Pacific Ocean (CCZ), located approximately 1,300 nautical miles southwest of San Diego, California. The CCZ is a geological submarine fracture zone of abyssal plains and other formations in the Eastern Pacific Ocean, with a length of around 4,500 miles that spans approximately 1,737,000 square miles. These nodules contain high grades of four metals (nickel, copper, cobalt, manganese) which can be used as feedstock for battery cathode precursors (nickel, cobalt and manganese sulfates, or intermediate nickel-copper-cobalt matte) for electric vehicles (EV) and energy storage markets; copper cathode for EV wiring, energy transmission and other applications, and manganese silicate for manganese alloy production required for steel production.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Strategic Opportunities and Challenges in Deep-Sea Mining
- Rising Demand for Critical Minerals: Geopolitical tensions have significantly increased the demand for critical minerals such as nickel, copper, and cobalt, which are essential for advanced technologies like electric vehicles and semiconductors, prompting policymakers to prioritize securing supply chains.
- Deep-Sea Mining Potential: The Metals Company (TMC) aims to extract polymetallic nodules through deep-sea mining, with projected revenues of $369 billion and over $200 billion in EBITDA over the project's lifespan, indicating substantial market potential, albeit with legal and execution risks.
- Complex Regulatory Environment: TMC's deep-sea mining efforts are regulated by NOAA in the U.S. and ISA internationally, with the latter yet to finalize exploitation regulations, potentially complicating TMC's permit applications and increasing international regulatory risks.
- Environmental Challenges and Opposition: Environmentalists express concerns over the ecological impacts of deep-sea mining, including biodiversity loss and habitat destruction, necessitating TMC to address these environmental challenges effectively while advancing its projects to ensure sustainable development.
See More
Pentagon Bans Use of Chinese Rare Earth Materials in Defense
- Policy Shift Impact: The Pentagon's plan to ban the use of Chinese-origin rare earth magnetic materials in U.S. military platforms starting in 2027 will compel manufacturers to trace the origins of rare earth metals, significantly impacting the entire American defense industrial base.
- Supply Chain Restructuring: Defense giants like Lockheed Martin are overhauling their magnet supply chains to avoid non-compliance risks in 2027, emphasizing that the traceability requirements for rare earth sourcing will affect multi-tier supplier networks.
- Domestic Production Capacity Boost: REalloys has achieved industrial production of rare earth metals at its Euclid facility in Ohio, targeting an annual output of 400 tonnes by the end of 2027, scaling up to 600 tonnes, marking a significant restoration of U.S. self-sufficiency in rare earth metals.
- Capital Support and Strategic Investment: The U.S. Export-Import Bank has expressed interest in providing up to $200 million to support rare earth processing expansion, reflecting the government's commitment to rebuilding the domestic rare earth supply chain to ensure stability and security in defense production.
See More
Pentagon Bans Use of Chinese Rare Earth Materials in Defense
- Policy Impact: The Pentagon's plan to ban the use of Chinese-origin rare earth magnetic materials in U.S. military platforms starting in 2027 will compel manufacturers to trace the origins of rare earth metals, significantly impacting the entire American defense industrial base.
- Supply Chain Restructuring: Defense giants like Lockheed Martin are overhauling their magnet supply chains to avoid compliance risks in 2027, emphasizing that the traceability requirements for rare earth materials will affect multi-tier supplier networks.
- Domestic Production Capacity: REalloys has achieved industrial production of rare earth metals at its Euclid facility in Ohio, targeting an annual output of 400 tonnes by the end of 2027, scaling up to 600 tonnes, marking a significant enhancement in U.S. self-sufficiency in rare earth metals.
- Strategic Investment: REalloys, in partnership with SRC, is focused on rare earth metallization and alloying, ensuring that U.S. defense production no longer relies on China, highlighting that rare earth metallization has become a critical variable in defense planning.
See More
The Potential and Risks of Deep-Sea Mining
- Importance of Critical Minerals: Rising geopolitical tensions have spotlighted critical minerals and rare earth metals, essential for advanced technologies like electric vehicles, wind turbines, and semiconductors, as well as national defense and aerospace applications.
- Prospects of Deep-Sea Mining: The Metals Company (TMC) aims to mine polymetallic nodules rich in nickel, copper, cobalt, and manganese from the ocean floor, potentially providing a substantial domestic supply for the U.S. and reducing reliance on foreign suppliers, although the industry faces regulatory uncertainties.
- Complex Regulatory Path: TMC has faced multiple delays in obtaining deep-sea mining permits; despite support from the Trump administration in 2025 to expedite the approval process, the International Seabed Authority (ISA) has yet to finalize exploitation regulations, increasing compliance risks.
- Investment Risks and Rewards: While TMC estimates its projects could generate $369 billion in revenue and over $200 billion in EBITDA over their lifespan, deep-sea mining has never been commercially scaled, leaving operational costs and feasibility untested, making the stock suitable for aggressive investors who can tolerate risk.
See More
RedChip Show to Feature Interviews with TMC and ASPI
- TMC's Strategic Role: TMC CFO Craig Shesky emphasized the company's importance in addressing U.S. critical mineral dependence during the RedChip show, particularly through the development of polymetallic nodule resources in the Clarion Clipperton Zone, which could provide a long-term domestic supply of nickel, copper, cobalt, and manganese, thereby enhancing the U.S.'s strategic position amid geopolitical competition.
- Regulatory Framework Progress: Shesky noted TMC's advancements under the U.S. Deep Seabed Hard Mineral Resources Act and updates to NOAA's permitting process, which streamline the path toward commercial recovery, facilitating rapid growth in the critical minerals sector.
- ASPI's Market Positioning: ASP Isotopes CEO Paul Mann discussed the company's vertically integrated strategy to become a leading Western supplier of critical stable isotopes and nuclear fuels, highlighting the increasing importance of ASPI amid global supply concentration, particularly Russia's dominance in stable isotope production.
- Revenue Growth Potential: Mann pointed out that ASPI's nuclear medicine platform is generating double-digit year-over-year revenue growth, and the recent acquisition of Renergen provides access to one of the world's most concentrated helium resources, with 2026 poised to be a transformational year for the company as it advances toward scaled commercial production across multiple high-value critical material markets.
See More
The Metals Company: Risks and Opportunities Ahead
- Significant Resource Potential: The Metals Company claims to be unlocking the world's largest undeveloped resource of nickel, cobalt, copper, and manganese, which are critical for energy, defense, and infrastructure, indicating strong market demand and interest from countries seeking stable sourcing.
- Slow Development Progress: Despite its potential, the company has made slow progress in development and is expected to remain unprofitable in 2026, making it unlikely to generate any revenue, which raises concerns about its financial health for investors.
- Undersea Mining Risks: The company's mining operations are underwater, adding complexity and significant risks to its operations, with historical failures of other underwater mining attempts casting doubt on its future prospects.
- Cautious Investor Approach: Given the stock's high volatility, investors should assess their risk tolerance when considering holding shares in The Metals Company, as many may find it more prudent to observe the company's development from the sidelines rather than invest directly.
See More
Strategic Opportunities and Challenges in Deep-Sea Mining
- Rising Demand for Critical Minerals: Geopolitical tensions have significantly increased the demand for critical minerals such as nickel, copper, and cobalt, which are essential for advanced technologies like electric vehicles and semiconductors, prompting policymakers to prioritize securing supply chains.
- Deep-Sea Mining Potential: The Metals Company (TMC) aims to extract polymetallic nodules through deep-sea mining, with projected revenues of $369 billion and over $200 billion in EBITDA over the project's lifespan, indicating substantial market potential, albeit with legal and execution risks.
- Complex Regulatory Environment: TMC's deep-sea mining efforts are regulated by NOAA in the U.S. and ISA internationally, with the latter yet to finalize exploitation regulations, potentially complicating TMC's permit applications and increasing international regulatory risks.
- Environmental Challenges and Opposition: Environmentalists express concerns over the ecological impacts of deep-sea mining, including biodiversity loss and habitat destruction, necessitating TMC to address these environmental challenges effectively while advancing its projects to ensure sustainable development.
See More
Pentagon Bans Use of Chinese Rare Earth Materials in Defense
- Policy Shift Impact: The Pentagon's plan to ban the use of Chinese-origin rare earth magnetic materials in U.S. military platforms starting in 2027 will compel manufacturers to trace the origins of rare earth metals, significantly impacting the entire American defense industrial base.
- Supply Chain Restructuring: Defense giants like Lockheed Martin are overhauling their magnet supply chains to avoid non-compliance risks in 2027, emphasizing that the traceability requirements for rare earth sourcing will affect multi-tier supplier networks.
- Domestic Production Capacity Boost: REalloys has achieved industrial production of rare earth metals at its Euclid facility in Ohio, targeting an annual output of 400 tonnes by the end of 2027, scaling up to 600 tonnes, marking a significant restoration of U.S. self-sufficiency in rare earth metals.
- Capital Support and Strategic Investment: The U.S. Export-Import Bank has expressed interest in providing up to $200 million to support rare earth processing expansion, reflecting the government's commitment to rebuilding the domestic rare earth supply chain to ensure stability and security in defense production.
See More
Pentagon Bans Use of Chinese Rare Earth Materials in Defense
- Policy Impact: The Pentagon's plan to ban the use of Chinese-origin rare earth magnetic materials in U.S. military platforms starting in 2027 will compel manufacturers to trace the origins of rare earth metals, significantly impacting the entire American defense industrial base.
- Supply Chain Restructuring: Defense giants like Lockheed Martin are overhauling their magnet supply chains to avoid compliance risks in 2027, emphasizing that the traceability requirements for rare earth materials will affect multi-tier supplier networks.
- Domestic Production Capacity: REalloys has achieved industrial production of rare earth metals at its Euclid facility in Ohio, targeting an annual output of 400 tonnes by the end of 2027, scaling up to 600 tonnes, marking a significant enhancement in U.S. self-sufficiency in rare earth metals.
- Strategic Investment: REalloys, in partnership with SRC, is focused on rare earth metallization and alloying, ensuring that U.S. defense production no longer relies on China, highlighting that rare earth metallization has become a critical variable in defense planning.
See More
The Potential and Risks of Deep-Sea Mining
- Importance of Critical Minerals: Rising geopolitical tensions have spotlighted critical minerals and rare earth metals, essential for advanced technologies like electric vehicles, wind turbines, and semiconductors, as well as national defense and aerospace applications.
- Prospects of Deep-Sea Mining: The Metals Company (TMC) aims to mine polymetallic nodules rich in nickel, copper, cobalt, and manganese from the ocean floor, potentially providing a substantial domestic supply for the U.S. and reducing reliance on foreign suppliers, although the industry faces regulatory uncertainties.
- Complex Regulatory Path: TMC has faced multiple delays in obtaining deep-sea mining permits; despite support from the Trump administration in 2025 to expedite the approval process, the International Seabed Authority (ISA) has yet to finalize exploitation regulations, increasing compliance risks.
- Investment Risks and Rewards: While TMC estimates its projects could generate $369 billion in revenue and over $200 billion in EBITDA over their lifespan, deep-sea mining has never been commercially scaled, leaving operational costs and feasibility untested, making the stock suitable for aggressive investors who can tolerate risk.
See More
RedChip Show to Feature Interviews with TMC and ASPI
- TMC's Strategic Role: TMC CFO Craig Shesky emphasized the company's importance in addressing U.S. critical mineral dependence during the RedChip show, particularly through the development of polymetallic nodule resources in the Clarion Clipperton Zone, which could provide a long-term domestic supply of nickel, copper, cobalt, and manganese, thereby enhancing the U.S.'s strategic position amid geopolitical competition.
- Regulatory Framework Progress: Shesky noted TMC's advancements under the U.S. Deep Seabed Hard Mineral Resources Act and updates to NOAA's permitting process, which streamline the path toward commercial recovery, facilitating rapid growth in the critical minerals sector.
- ASPI's Market Positioning: ASP Isotopes CEO Paul Mann discussed the company's vertically integrated strategy to become a leading Western supplier of critical stable isotopes and nuclear fuels, highlighting the increasing importance of ASPI amid global supply concentration, particularly Russia's dominance in stable isotope production.
- Revenue Growth Potential: Mann pointed out that ASPI's nuclear medicine platform is generating double-digit year-over-year revenue growth, and the recent acquisition of Renergen provides access to one of the world's most concentrated helium resources, with 2026 poised to be a transformational year for the company as it advances toward scaled commercial production across multiple high-value critical material markets.
See More
The Metals Company: Risks and Opportunities Ahead
- Significant Resource Potential: The Metals Company claims to be unlocking the world's largest undeveloped resource of nickel, cobalt, copper, and manganese, which are critical for energy, defense, and infrastructure, indicating strong market demand and interest from countries seeking stable sourcing.
- Slow Development Progress: Despite its potential, the company has made slow progress in development and is expected to remain unprofitable in 2026, making it unlikely to generate any revenue, which raises concerns about its financial health for investors.
- Undersea Mining Risks: The company's mining operations are underwater, adding complexity and significant risks to its operations, with historical failures of other underwater mining attempts casting doubt on its future prospects.
- Cautious Investor Approach: Given the stock's high volatility, investors should assess their risk tolerance when considering holding shares in The Metals Company, as many may find it more prudent to observe the company's development from the sidelines rather than invest directly.
See More
