TMC the metals co., Inc. Q4 FY2023 earnings call

Gerard Barron highlighted the company's progress over the past four years, including resource statements in 2021, successful pilot system tests in 2022, signing a MoU with PAMCO in Japan, and deriving the first nickel sulfate from seafloor nodules. Craig Shesky discussed the NORI-D project, including progress on pre-feasibility work, environmental data collection, and regulatory updates. The company secured a $20M credit facility with ERAS Capital and Allseas extended its credit facility, with pro forma liquidity at $61M. The expected first commercial production offshore is now at the end of Q1 2026, with production capacity upgraded to 3M wet tons. There was also mention of industry headlines, geopolitical support, and progress on the environmental impact statement and pre-feasibility study.

Expected to commence offshore production at the end of Q1 2026 assuming a one-year ISA review process. Upgraded production capacity from 1.3 million to 3 million wet tons. Confident that cash on hand and credit facilities will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months.

Uncertainties in regulatory approval timelines, market volatility in metal prices, and dependence on strategic partnerships with potential delays.

Q: Is the 6% of share price on NORI assets or all assets?

A: Focused on NORI-D, which is 22% of the total estimated resource. Market cap represents roughly 6% of the updated value of the NORI-D initial assessment at current metal prices.

Q: What were the main elements that resulted in the modest extension of the time to offshore production into the first quarter of 2026?

A: Moving the production number from 1.3 million tons to 3 million tons required upgrades and modifications, causing a slight delay in the timeline.

Q: Timing of the upcoming feasibility study?

A: The pre-feasibility study is on track for mid-year, supporting the application process and addressing technical issues.

Q: Comment on China's influence on deep-sea mining and DOD grant?

A: China is a strong voice at the ISA, and the DOD grant process is ongoing with continued communication and potential funding opportunities.

Q: Partnerships and auto OEMs?

A: Contacted by countries for partnerships, and continuing talks with auto OEMs, with the company keeping them informed on environmental progress.