The Metals Company Faces Uncertainties in Undersea Mining Venture
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy TMC?
Source: NASDAQ.COM
- Significant Stock Volatility: The Metals Company (TMC) has seen its share price rise over 220% in the past year, peaking at over 460%, indicating high volatility that investors must navigate cautiously to mitigate potential risks.
- Undersea Mining Challenges: Despite The Metals Company's ambition to establish an undersea mining operation, it currently lacks operational capability and is expected to continue incurring losses due to substantial capital investments, necessitating investor awareness of these challenges.
- Commodity Price Impact: The company aims to mine nickel, cobalt, copper, and manganese, which are currently priced high, attracting investment; however, historically, high commodity prices can lead to price declines, potentially affecting profitability in the long run.
- High-Risk Investment: The Metals Company is categorized as a high-risk investment, suitable only for the most aggressive investors, and it is advisable to wait until the company begins generating revenue before making investment decisions.
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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: 5.900
Low
6.50
Averages
8.33
High
11.00
Current: 5.900
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.
TMC The Metals Company Stock Shows Significant Volatility
- Stock Performance: Over the past year, TMC's share price has risen by more than 220%, peaking at over 460%, indicating significant volatility that investors should carefully assess for risk and reward.
- Business Model Challenges: TMC is attempting to establish an undersea mining business, and while the company highlights its technological advancements, similar historical attempts have failed to achieve profitability, posing substantial risks.
- High Mining Costs: Currently, TMC is far from having a functioning undersea mining operation and is expected to continue incurring losses; the high costs and risks associated with undersea mining further challenge future profitability.
- Commodity Price Volatility: The commodities TMC aims to mine, including nickel, cobalt, copper, and manganese, are currently priced high, attracting investment; however, long-term price fluctuations could impact the company's profitability.
See More
The Metals Company Faces Uncertainties in Undersea Mining Venture
- Significant Stock Volatility: The Metals Company (TMC) has seen its share price rise over 220% in the past year, peaking at over 460%, indicating high volatility that investors must navigate cautiously to mitigate potential risks.
- Undersea Mining Challenges: Despite The Metals Company's ambition to establish an undersea mining operation, it currently lacks operational capability and is expected to continue incurring losses due to substantial capital investments, necessitating investor awareness of these challenges.
- Commodity Price Impact: The company aims to mine nickel, cobalt, copper, and manganese, which are currently priced high, attracting investment; however, historically, high commodity prices can lead to price declines, potentially affecting profitability in the long run.
- High-Risk Investment: The Metals Company is categorized as a high-risk investment, suitable only for the most aggressive investors, and it is advisable to wait until the company begins generating revenue before making investment decisions.
See More
U.S. Advances Critical Minerals Price Floor System
- Market Stabilization Mechanism: U.S. Under Secretary of State Jacob Helberg stated that the new pricing mechanism aims to stabilize markets by unlocking private investment, expected to roll out through the Pax Silica program, although specific implementation details remain unclear.
- Strengthened International Cooperation: The U.S. has reached agreements with the European Union, Japan, and Mexico to introduce price floor policies to address supply chain vulnerabilities, demonstrating U.S. leadership in global critical mineral supply chains.
- Positive Stock Market Reaction: Following the announcement, rare earth mining companies such as United States Antimony Corp (UAMY), MP Materials (MP), and USA Rare Earth Inc. (USAR) gained over 2% in pre-market trading, reflecting market optimism regarding the new policy.
- Divergent Investor Sentiment: Despite the stock price increase, retail investor sentiment on Stocktwits leaned bearish, indicating cautious attitudes towards long-term prospects, although some users expressed optimism about the sector's future.
See More
TMC The Metals Company Poised for Significant Growth
- Market Potential: TMC The Metals Company currently trades at $6.18 with a market cap of $2.7 billion, and its targeted project could be valued at approximately $24 billion, highlighting its significant market potential in deep-sea mining.
- Resource Richness: According to the U.S. Geological Survey, the polymetallic modules in TMC's Clarion-Clipperton Zone may contain more nickel, cobalt, and manganese than all known land deposits, with copper reserves comparable to those on land, enhancing its resource attractiveness.
- Commercial Production Plans: TMC anticipates starting commercial production by late 2027, and while it has yet to secure regulatory approval from the International Seabed Authority, the potential revenue from its nodules could reach tens of billions, indicating strong long-term profitability.
- Financial Status: As of the end of Q3, TMC had approximately $116 million in cash, with quarterly cash burn between $10 million and $11 million, which could increase significantly as production ramps up, necessitating close monitoring of its liquidity.
See More
TMC's Deep-Sea Mining Potential is Huge
- Resource Richness: TMC's ownership of the Clarion-Clipperton Zone, which contains more nickel, cobalt, and manganese than all known land deposits combined, highlights its immense potential in deep-sea mining, potentially generating billions in revenue for the company.
- Project Valuation Outlook: The company's first targeted project is estimated to be worth around $24 billion, and while the costs of harvesting and processing remain unclear, the potential life-of-mine revenue could reach tens of billions, underscoring the project's strategic significance.
- Financial Status and Burn Rate: As of the third quarter, TMC had approximately $116 million in total cash, with a quarterly burn rate between $10 million and $11 million, which could increase significantly as production ramps up, necessitating close attention to its financial sustainability.
- Regulatory Challenges and Market Timing: TMC must secure regulatory approval from the International Seabed Authority to legally access these deposits, with commercial production expected to start in late 2027; if successful, this could present substantial market opportunities for the company.
See More
Analysis of The Metals Company's Undersea Mining Prospects
- Undersea Mining Challenges: The Metals Company is attempting to develop undersea mining, a method previously abandoned due to sustainability issues; however, the company is developing new technologies to improve this process, highlighting both potential and challenges.
- Market Demand Outlook: The company aims to produce critical metals like nickel, cobalt, copper, and manganese, which are in high demand in the tech sector, particularly with the surge in artificial intelligence investments, suggesting future demand may rise.
- Severe Financial Condition: As of Q3 2025, the company reported a loss of $0.46 per share, a significant increase from a $0.06 loss in the same quarter of 2024, indicating substantial challenges in achieving profitability.
- Investment Risk Advisory: While the concept of undersea mining is exciting, most investors should view it as a high-risk startup and consider waiting for more progress before investing to avoid potential financial losses.
See More
TMC The Metals Company Stock Shows Significant Volatility
- Stock Performance: Over the past year, TMC's share price has risen by more than 220%, peaking at over 460%, indicating significant volatility that investors should carefully assess for risk and reward.
- Business Model Challenges: TMC is attempting to establish an undersea mining business, and while the company highlights its technological advancements, similar historical attempts have failed to achieve profitability, posing substantial risks.
- High Mining Costs: Currently, TMC is far from having a functioning undersea mining operation and is expected to continue incurring losses; the high costs and risks associated with undersea mining further challenge future profitability.
- Commodity Price Volatility: The commodities TMC aims to mine, including nickel, cobalt, copper, and manganese, are currently priced high, attracting investment; however, long-term price fluctuations could impact the company's profitability.
See More
The Metals Company Faces Uncertainties in Undersea Mining Venture
- Significant Stock Volatility: The Metals Company (TMC) has seen its share price rise over 220% in the past year, peaking at over 460%, indicating high volatility that investors must navigate cautiously to mitigate potential risks.
- Undersea Mining Challenges: Despite The Metals Company's ambition to establish an undersea mining operation, it currently lacks operational capability and is expected to continue incurring losses due to substantial capital investments, necessitating investor awareness of these challenges.
- Commodity Price Impact: The company aims to mine nickel, cobalt, copper, and manganese, which are currently priced high, attracting investment; however, historically, high commodity prices can lead to price declines, potentially affecting profitability in the long run.
- High-Risk Investment: The Metals Company is categorized as a high-risk investment, suitable only for the most aggressive investors, and it is advisable to wait until the company begins generating revenue before making investment decisions.
See More
U.S. Advances Critical Minerals Price Floor System
- Market Stabilization Mechanism: U.S. Under Secretary of State Jacob Helberg stated that the new pricing mechanism aims to stabilize markets by unlocking private investment, expected to roll out through the Pax Silica program, although specific implementation details remain unclear.
- Strengthened International Cooperation: The U.S. has reached agreements with the European Union, Japan, and Mexico to introduce price floor policies to address supply chain vulnerabilities, demonstrating U.S. leadership in global critical mineral supply chains.
- Positive Stock Market Reaction: Following the announcement, rare earth mining companies such as United States Antimony Corp (UAMY), MP Materials (MP), and USA Rare Earth Inc. (USAR) gained over 2% in pre-market trading, reflecting market optimism regarding the new policy.
- Divergent Investor Sentiment: Despite the stock price increase, retail investor sentiment on Stocktwits leaned bearish, indicating cautious attitudes towards long-term prospects, although some users expressed optimism about the sector's future.
See More
TMC The Metals Company Poised for Significant Growth
- Market Potential: TMC The Metals Company currently trades at $6.18 with a market cap of $2.7 billion, and its targeted project could be valued at approximately $24 billion, highlighting its significant market potential in deep-sea mining.
- Resource Richness: According to the U.S. Geological Survey, the polymetallic modules in TMC's Clarion-Clipperton Zone may contain more nickel, cobalt, and manganese than all known land deposits, with copper reserves comparable to those on land, enhancing its resource attractiveness.
- Commercial Production Plans: TMC anticipates starting commercial production by late 2027, and while it has yet to secure regulatory approval from the International Seabed Authority, the potential revenue from its nodules could reach tens of billions, indicating strong long-term profitability.
- Financial Status: As of the end of Q3, TMC had approximately $116 million in cash, with quarterly cash burn between $10 million and $11 million, which could increase significantly as production ramps up, necessitating close monitoring of its liquidity.
See More
TMC's Deep-Sea Mining Potential is Huge
- Resource Richness: TMC's ownership of the Clarion-Clipperton Zone, which contains more nickel, cobalt, and manganese than all known land deposits combined, highlights its immense potential in deep-sea mining, potentially generating billions in revenue for the company.
- Project Valuation Outlook: The company's first targeted project is estimated to be worth around $24 billion, and while the costs of harvesting and processing remain unclear, the potential life-of-mine revenue could reach tens of billions, underscoring the project's strategic significance.
- Financial Status and Burn Rate: As of the third quarter, TMC had approximately $116 million in total cash, with a quarterly burn rate between $10 million and $11 million, which could increase significantly as production ramps up, necessitating close attention to its financial sustainability.
- Regulatory Challenges and Market Timing: TMC must secure regulatory approval from the International Seabed Authority to legally access these deposits, with commercial production expected to start in late 2027; if successful, this could present substantial market opportunities for the company.
See More
Analysis of The Metals Company's Undersea Mining Prospects
- Undersea Mining Challenges: The Metals Company is attempting to develop undersea mining, a method previously abandoned due to sustainability issues; however, the company is developing new technologies to improve this process, highlighting both potential and challenges.
- Market Demand Outlook: The company aims to produce critical metals like nickel, cobalt, copper, and manganese, which are in high demand in the tech sector, particularly with the surge in artificial intelligence investments, suggesting future demand may rise.
- Severe Financial Condition: As of Q3 2025, the company reported a loss of $0.46 per share, a significant increase from a $0.06 loss in the same quarter of 2024, indicating substantial challenges in achieving profitability.
- Investment Risk Advisory: While the concept of undersea mining is exciting, most investors should view it as a high-risk startup and consider waiting for more progress before investing to avoid potential financial losses.
See More
