The Metals Company Secures New Regulations to Accelerate Deep-Sea Mining, Market Cap Reaches $3.7 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Regulatory Update: The National Oceanic and Atmospheric Administration (NOAA) has announced new regulations allowing The Metals Company to apply for both exploration and commercial recovery permits simultaneously, streamlining the deep-sea mining approval process and potentially accelerating commercialization.
- Market Potential: The Metals Company currently has a market cap of $3.7 billion, despite generating no revenue, while controlling polymetallic nodules with an in-place value of approximately $23.6 billion, indicating significant market potential and investment appeal.
- Stock Movement: The Metals Company's stock surged 13.46% in the latest trading session to $1.12, reflecting increased market optimism regarding its future commercialization prospects and potentially offering an attractive entry point for long-term investors.
- Execution Risks: While the regulatory path is becoming clearer, The Metals Company still faces execution risks, and the timeline for future commercial operations could be shorter than previously expected, necessitating careful assessment of potential risks and rewards by investors.
Analyst Views on TMC
Wall Street analysts forecast TMC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TMC is 8.33 USD with a low forecast of 6.50 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 8.320
Low
6.50
Averages
8.33
High
11.00
Current: 8.320
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.
