TMC Ventures into Deep-Sea Mining with Uncertain Prospects
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 58 minutes ago
0mins
Source: Fool
- 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.
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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: 5.990
Low
6.50
Averages
8.33
High
11.00
Current: 5.990
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'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 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 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 Advances in Deep-Sea Mining Efforts
- Resource Potential: TMC estimates that its contract area in the Clarion-Clipperton Zone contains enough polymetallic nodules to power 280 million electric vehicles, highlighting its significance in the clean energy transition.
- Regulatory Progress: With the accelerated regulatory pathway provided by the U.S., TMC's application has been deemed substantially compliant, and it expects the regulatory review to conclude by early 2027, paving the way for commercial extraction.
- Market Environment Shift: The White House has been actively promoting domestic metal supplies, particularly critical and rare-earth metals, and continued support for TMC's deep-sea mining ambitions could enable mining operations to commence in 2024.
- Investment Risk Advisory: Despite TMC's promising outlook, the stock remains highly speculative, and investors should proceed with caution, especially considering potential impacts from international law on its operations.
See More
Surge Battery Metals Secures Funding to Accelerate Lithium Project
- Strategic Financing Plan: Surge Battery Metals Inc. is set to raise up to $30 million through a non-brokered private placement of up to 50 million units at $0.60 each, which, if fully subscribed, will fully fund the Nevada North Lithium Project to a construction decision, demonstrating strong financial backing for lithium development.
- Enhanced Leadership Team: Brian Paes-Braga and Michael Hess will co-lead Surge's Strategic Advisory Board, leveraging their extensive experience in the lithium sector and capital markets to enhance the company's global capital market presence and support its Nasdaq listing application, thereby strengthening its market position.
- Project Economic Potential: The Nevada North Lithium Project boasts an after-tax NPV of $9.17 billion and a mine life of 42 years, highlighting its significance in lithium resource development and its potential contribution to U.S. lithium supply security, aligning with national strategic priorities.
- Board Member Appointments: SAF Group is expected to gain the right to appoint two board members, reflecting its long-term commitment to the Nevada North Lithium Project and further solidifying the company's leadership position in lithium development.
See More
The Metals Company Secures Exploration License, Stock Rises
- Stock Price Surge: Since closing at $5.10 on May 20, shares of The Metals Company (TMC) have risen in every subsequent trading session, closing today up 7.9%, reflecting strong market optimism about its future prospects.
- License Certification: The Metals Company announced that its subsidiary has received formal certification of the USA Part B exploration license from the National Oceanic and Atmospheric Administration (NOAA), covering approximately 122,000 square kilometers of seafloor and containing about 1.02 billion metric tons of polymetallic nodules, marking a significant step toward commercial operations.
- Application Progress: The Metals Company USA is proceeding with its application for an exploration license and a commercial recovery permit for the USA A area, which NOAA has confirmed as fully compliant, further boosting investor confidence in the company's future development.
- Investment Risk Advisory: While today's news represents a positive development for The Metals Company, investors must remain aware that despite progress in regulatory approvals, the profitability of deep-sea mining operations remains uncertain, necessitating cautious investment strategies.
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 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 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 Advances in Deep-Sea Mining Efforts
- Resource Potential: TMC estimates that its contract area in the Clarion-Clipperton Zone contains enough polymetallic nodules to power 280 million electric vehicles, highlighting its significance in the clean energy transition.
- Regulatory Progress: With the accelerated regulatory pathway provided by the U.S., TMC's application has been deemed substantially compliant, and it expects the regulatory review to conclude by early 2027, paving the way for commercial extraction.
- Market Environment Shift: The White House has been actively promoting domestic metal supplies, particularly critical and rare-earth metals, and continued support for TMC's deep-sea mining ambitions could enable mining operations to commence in 2024.
- Investment Risk Advisory: Despite TMC's promising outlook, the stock remains highly speculative, and investors should proceed with caution, especially considering potential impacts from international law on its operations.
See More
Surge Battery Metals Secures Funding to Accelerate Lithium Project
- Strategic Financing Plan: Surge Battery Metals Inc. is set to raise up to $30 million through a non-brokered private placement of up to 50 million units at $0.60 each, which, if fully subscribed, will fully fund the Nevada North Lithium Project to a construction decision, demonstrating strong financial backing for lithium development.
- Enhanced Leadership Team: Brian Paes-Braga and Michael Hess will co-lead Surge's Strategic Advisory Board, leveraging their extensive experience in the lithium sector and capital markets to enhance the company's global capital market presence and support its Nasdaq listing application, thereby strengthening its market position.
- Project Economic Potential: The Nevada North Lithium Project boasts an after-tax NPV of $9.17 billion and a mine life of 42 years, highlighting its significance in lithium resource development and its potential contribution to U.S. lithium supply security, aligning with national strategic priorities.
- Board Member Appointments: SAF Group is expected to gain the right to appoint two board members, reflecting its long-term commitment to the Nevada North Lithium Project and further solidifying the company's leadership position in lithium development.
See More
The Metals Company Secures Exploration License, Stock Rises
- Stock Price Surge: Since closing at $5.10 on May 20, shares of The Metals Company (TMC) have risen in every subsequent trading session, closing today up 7.9%, reflecting strong market optimism about its future prospects.
- License Certification: The Metals Company announced that its subsidiary has received formal certification of the USA Part B exploration license from the National Oceanic and Atmospheric Administration (NOAA), covering approximately 122,000 square kilometers of seafloor and containing about 1.02 billion metric tons of polymetallic nodules, marking a significant step toward commercial operations.
- Application Progress: The Metals Company USA is proceeding with its application for an exploration license and a commercial recovery permit for the USA A area, which NOAA has confirmed as fully compliant, further boosting investor confidence in the company's future development.
- Investment Risk Advisory: While today's news represents a positive development for The Metals Company, investors must remain aware that despite progress in regulatory approvals, the profitability of deep-sea mining operations remains uncertain, necessitating cautious investment strategies.
See More
