TMC Secures NOAA Approval for Expanded Ocean Mining License
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: NASDAQ.COM
- Regulatory Approval: TMC The Metals Company recently received NOAA's approval to explore an additional 122,000 square kilometers of the Pacific Ocean seafloor, with estimates suggesting over 1 billion tonnes of polymetallic nodules rich in critical minerals essential for electric vehicles and defense technologies.
- Environmental Impact Assessment: As NOAA prepares an Environmental Impact Statement, TMC's exploration activities will undergo public scrutiny regarding sediment plumes and biodiversity loss, which could significantly affect its future mining plans.
- Market Competition: The U.S. is aggressively working to reduce its reliance on foreign rare-earth elements, and TMC's advancements may play a crucial role in revitalizing domestic supply chains, especially given China's dominance in 70% of extraction and 90% of processing.
- Investment Risks: Despite receiving regulatory approval, TMC remains in its early stages as a pre-revenue company, facing numerous challenges in commercial deep-sea mining, prompting investors to cautiously monitor its developments.
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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: 5.110
Low
6.50
Averages
8.33
High
11.00
Current: 5.110
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 Secures NOAA Approval for Expanded Ocean Mining License
- Regulatory Approval: TMC The Metals Company recently received NOAA's approval to explore an additional 122,000 square kilometers of the Pacific Ocean seafloor, with estimates suggesting over 1 billion tonnes of polymetallic nodules rich in critical minerals essential for electric vehicles and defense technologies.
- Environmental Impact Assessment: As NOAA prepares an Environmental Impact Statement, TMC's exploration activities will undergo public scrutiny regarding sediment plumes and biodiversity loss, which could significantly affect its future mining plans.
- Market Competition: The U.S. is aggressively working to reduce its reliance on foreign rare-earth elements, and TMC's advancements may play a crucial role in revitalizing domestic supply chains, especially given China's dominance in 70% of extraction and 90% of processing.
- Investment Risks: Despite receiving regulatory approval, TMC remains in its early stages as a pre-revenue company, facing numerous challenges in commercial deep-sea mining, prompting investors to cautiously monitor its developments.
See More
U.S. Accelerates Efforts to Reduce Reliance on Chinese Rare Earths
- Rare Earth Landscape: China dominates the rare-earth elements market, controlling 70% of extraction and 90% of processing, which poses significant risks for U.S. resource dependence, necessitating urgent measures to ensure national security and economic independence.
- Domestic Supply Chain Investment: The U.S. is heavily investing in revitalizing its domestic supply chains and exploring ocean-floor mining to reduce reliance on foreign rare earths, with TMC leading the charge after receiving crucial regulatory approval.
- Ocean Mining License: NOAA has approved TMC's expanded ocean mining exploration license, covering an additional 122,000 square kilometers, with estimates suggesting over 1 billion tonnes of polymetallic nodules containing nickel, cobalt, and copper, all of which are vital for various industries.
- Environmental Impact Assessment: Despite the license approval, TMC faces significant opposition from environmental groups, as NOAA prepares an Environmental Impact Statement to evaluate potential ecological impacts, which could affect the project's progress and public acceptance.
See More
Middle East Tensions Rise, Oil Prices Surge
- Geopolitical Uncertainty: President Trump is reportedly urging Israeli Prime Minister Netanyahu not to retaliate against Iran's attacks, aiming to ease tensions in the Middle East and prevent disruption to a potential deal with Iran, which could stabilize global markets.
- Oil Price Surge: Amid heightened tensions, Brent crude futures rose by 3.6% to approximately $96.47 per barrel, while WTI crude futures increased by over 4% to around $94.20, indicating market concerns over potential supply disruptions.
- Tech Stock Decline: The Nasdaq Composite plummeted more than 1,000 points on Friday, closing down 4.18%, marking its sharpest decline in 14 months, reflecting investor confidence being shaken by geopolitical tensions and interest rate hike fears.
- Market Volatility Expectations: With the upcoming SpaceX IPO, the market may experience unusual swings as investors sell other stocks to raise cash, further exacerbating uncertainty, particularly as AI and chip companies face mounting pressures.
See More
TMC Ventures into Deep-Sea Mining with Uncertain Prospects
- Deep-Sea Mining Initiative: TMC aims to extract cobalt, copper, nickel, and manganese-rich nodules from the Pacific Ocean, essential for clean energy and EV batteries, yet lacks regulatory approval and has not commenced extraction.
- Environmental Concerns: Early studies indicate significant ecological risks, with a recent five-year study revealing a 37% decline in animal populations and a 32% drop in species diversity due to mining activities, posing challenges to TMC's long-term sustainability.
- Market Potential and Risks: TMC has identified approximately $24 billion worth of nodules in its target area, but the costs associated with large-scale collection and processing remain unknown, creating uncertainty around profitability, especially given the cyclical nature of metal markets.
- Cautious Investor Sentiment: With a market cap of around $2.6 billion and a share price below $7, the market reflects skepticism about TMC's prospects, leading many investors to adopt a wait-and-see approach until regulatory clarity is achieved.
See More
TMC's Deep-Sea Mining Plans Face Challenges
- Deep-Sea Mining Potential: TMC aims to extract cobalt, copper, nickel, and manganese nodules from the Pacific Ocean, valued at approximately $24 billion; however, the company has yet to commence mining and lacks necessary regulatory authority, leading to cautious investor sentiment regarding its future profitability.
- Environmental Concerns: Early research indicates that deep-sea mining could cause long-term damage to marine ecosystems, with a five-year study in the Clarion-Clipperton Zone revealing a 37% decline in animal populations and a 32% drop in species diversity, potentially impacting TMC's operational permits and public perception.
- Market Uncertainty: Despite TMC's market capitalization of around $2.6 billion, its share price remains below $7, reflecting high uncertainty regarding its business model and profitability, particularly against the backdrop of cyclical fluctuations in the metals market, prompting many investors to adopt a wait-and-see approach.
- Regulatory Progress Impact: The U.S. is exploring a potentially expedited regulatory process, which could significantly boost TMC's stock over the next decade if successful; however, the current unknowns and associated risks lead most investors to remain cautious about the company.
See More
TMC The Metals Company Could Start Generating Revenue by 2027
- Regulatory Approval Progress: TMC The Metals Company expects to receive regulatory approval from the International Seabed Authority by early 2027, paving the way for its mineral extraction in the Clarion-Clipperton Zone, which could enable the company to start generating revenue by the end of 2027, significantly enhancing its market outlook.
- Resource Potential: The company estimates that there are enough polymetallic nodules in its contract area to power 280 million electric vehicles, showcasing not only the abundance of its resources but also its strategic importance in the electric vehicle and clean energy markets.
- Technological and Partnership Advantages: TMC's partnership with Allseas provides it with the necessary equipment for nodule extraction and the capability to process metals into battery-grade products; despite previous regulatory hurdles, the new accelerated pathway could commercialize its operations in the coming years, potentially leading to profitability.
- Market Risks and Investment Advice: While TMC's stock remains highly speculative with risks of international legal conflicts, continued support from the White House for its deep-sea mining plans could present investors with potential high returns; however, analysts advise careful risk assessment before investing.
See More
TMC Secures NOAA Approval for Expanded Ocean Mining License
- Regulatory Approval: TMC The Metals Company recently received NOAA's approval to explore an additional 122,000 square kilometers of the Pacific Ocean seafloor, with estimates suggesting over 1 billion tonnes of polymetallic nodules rich in critical minerals essential for electric vehicles and defense technologies.
- Environmental Impact Assessment: As NOAA prepares an Environmental Impact Statement, TMC's exploration activities will undergo public scrutiny regarding sediment plumes and biodiversity loss, which could significantly affect its future mining plans.
- Market Competition: The U.S. is aggressively working to reduce its reliance on foreign rare-earth elements, and TMC's advancements may play a crucial role in revitalizing domestic supply chains, especially given China's dominance in 70% of extraction and 90% of processing.
- Investment Risks: Despite receiving regulatory approval, TMC remains in its early stages as a pre-revenue company, facing numerous challenges in commercial deep-sea mining, prompting investors to cautiously monitor its developments.
See More
U.S. Accelerates Efforts to Reduce Reliance on Chinese Rare Earths
- Rare Earth Landscape: China dominates the rare-earth elements market, controlling 70% of extraction and 90% of processing, which poses significant risks for U.S. resource dependence, necessitating urgent measures to ensure national security and economic independence.
- Domestic Supply Chain Investment: The U.S. is heavily investing in revitalizing its domestic supply chains and exploring ocean-floor mining to reduce reliance on foreign rare earths, with TMC leading the charge after receiving crucial regulatory approval.
- Ocean Mining License: NOAA has approved TMC's expanded ocean mining exploration license, covering an additional 122,000 square kilometers, with estimates suggesting over 1 billion tonnes of polymetallic nodules containing nickel, cobalt, and copper, all of which are vital for various industries.
- Environmental Impact Assessment: Despite the license approval, TMC faces significant opposition from environmental groups, as NOAA prepares an Environmental Impact Statement to evaluate potential ecological impacts, which could affect the project's progress and public acceptance.
See More
Middle East Tensions Rise, Oil Prices Surge
- Geopolitical Uncertainty: President Trump is reportedly urging Israeli Prime Minister Netanyahu not to retaliate against Iran's attacks, aiming to ease tensions in the Middle East and prevent disruption to a potential deal with Iran, which could stabilize global markets.
- Oil Price Surge: Amid heightened tensions, Brent crude futures rose by 3.6% to approximately $96.47 per barrel, while WTI crude futures increased by over 4% to around $94.20, indicating market concerns over potential supply disruptions.
- Tech Stock Decline: The Nasdaq Composite plummeted more than 1,000 points on Friday, closing down 4.18%, marking its sharpest decline in 14 months, reflecting investor confidence being shaken by geopolitical tensions and interest rate hike fears.
- Market Volatility Expectations: With the upcoming SpaceX IPO, the market may experience unusual swings as investors sell other stocks to raise cash, further exacerbating uncertainty, particularly as AI and chip companies face mounting pressures.
See More
TMC Ventures into Deep-Sea Mining with Uncertain Prospects
- Deep-Sea Mining Initiative: TMC aims to extract cobalt, copper, nickel, and manganese-rich nodules from the Pacific Ocean, essential for clean energy and EV batteries, yet lacks regulatory approval and has not commenced extraction.
- Environmental Concerns: Early studies indicate significant ecological risks, with a recent five-year study revealing a 37% decline in animal populations and a 32% drop in species diversity due to mining activities, posing challenges to TMC's long-term sustainability.
- Market Potential and Risks: TMC has identified approximately $24 billion worth of nodules in its target area, but the costs associated with large-scale collection and processing remain unknown, creating uncertainty around profitability, especially given the cyclical nature of metal markets.
- Cautious Investor Sentiment: With a market cap of around $2.6 billion and a share price below $7, the market reflects skepticism about TMC's prospects, leading many investors to adopt a wait-and-see approach until regulatory clarity is achieved.
See More
TMC's Deep-Sea Mining Plans Face Challenges
- Deep-Sea Mining Potential: TMC aims to extract cobalt, copper, nickel, and manganese nodules from the Pacific Ocean, valued at approximately $24 billion; however, the company has yet to commence mining and lacks necessary regulatory authority, leading to cautious investor sentiment regarding its future profitability.
- Environmental Concerns: Early research indicates that deep-sea mining could cause long-term damage to marine ecosystems, with a five-year study in the Clarion-Clipperton Zone revealing a 37% decline in animal populations and a 32% drop in species diversity, potentially impacting TMC's operational permits and public perception.
- Market Uncertainty: Despite TMC's market capitalization of around $2.6 billion, its share price remains below $7, reflecting high uncertainty regarding its business model and profitability, particularly against the backdrop of cyclical fluctuations in the metals market, prompting many investors to adopt a wait-and-see approach.
- Regulatory Progress Impact: The U.S. is exploring a potentially expedited regulatory process, which could significantly boost TMC's stock over the next decade if successful; however, the current unknowns and associated risks lead most investors to remain cautious about the company.
See More
TMC The Metals Company Could Start Generating Revenue by 2027
- Regulatory Approval Progress: TMC The Metals Company expects to receive regulatory approval from the International Seabed Authority by early 2027, paving the way for its mineral extraction in the Clarion-Clipperton Zone, which could enable the company to start generating revenue by the end of 2027, significantly enhancing its market outlook.
- Resource Potential: The company estimates that there are enough polymetallic nodules in its contract area to power 280 million electric vehicles, showcasing not only the abundance of its resources but also its strategic importance in the electric vehicle and clean energy markets.
- Technological and Partnership Advantages: TMC's partnership with Allseas provides it with the necessary equipment for nodule extraction and the capability to process metals into battery-grade products; despite previous regulatory hurdles, the new accelerated pathway could commercialize its operations in the coming years, potentially leading to profitability.
- Market Risks and Investment Advice: While TMC's stock remains highly speculative with risks of international legal conflicts, continued support from the White House for its deep-sea mining plans could present investors with potential high returns; however, analysts advise careful risk assessment before investing.
See More
