Analysis of The Metals Company's Undersea Mining Prospects
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy TMC?
Source: Fool
- 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.
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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: 6.180
Low
6.50
Averages
8.33
High
11.00
Current: 6.180
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 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
Analysis of Investment Opportunities in Critical Minerals
- USA Rare Earth Prospects: USA Rare Earth is set to debut on public markets in March 2025 following a merger with a SPAC, with its Round Top deposit containing 15 of the 17 rare-earth elements, positioning it as a leader in the U.S. rare-earth market and likely to attract investor interest and drive stock price appreciation.
- Government Investment Support: The company has signed a letter of intent with the U.S. government for a $1.6 billion investment, which mitigates uncertainties surrounding the Round Top project and enhances its strategic position within the rare-earth supply chain.
- Deep-Sea Mining Potential: TMC The Metals Company focuses on harvesting polymetallic nodules from the seafloor and plans to partner with Korea Zinc for metal refining, which is expected to drive growth in copper and nickel markets to meet future demand.
- MP Materials Market Advantage: As the only fully integrated rare-earth producer in the U.S., MP Materials has secured over $500 million in funding from the Department of Defense and plans to launch a heavy rare-earth separation facility in 2026, further solidifying its market position and reducing price volatility risks.
See More
Investment Opportunities in Rare Earth Mining
- Government Support: The U.S. government plans to invest $1.6 billion in USA Rare Earth, significantly reducing risks associated with the Round Top project and enhancing its competitiveness in the rare earth market, likely attracting more investor interest.
- Production Capacity Expansion: MP Materials aims to commission a new heavy rare-earth separation facility at Mountain Pass by mid-2026, diversifying its product offerings while securing over $500 million in funding through a partnership with the Department of Defense, strengthening its market position.
- Deep-Sea Mining Prospects: TMC The Metals Company has partnered with Korea Zinc to harvest polymetallic nodules from the seafloor, which is expected to boost production of copper and nickel, addressing a projected 50% increase in demand and enhancing its competitiveness in the metals market.
- Strong Market Demand: With rising political interest in securing critical mineral supplies, companies like USA Rare Earth and MP Materials are gaining investor attention, which is expected to yield substantial returns for long-term investors.
See More
Mining Stocks: Risks and Opportunities for Investors
- TMC Overview: TMC The Metals Company focuses on collecting polymetallic nodules from the Pacific Ocean, currently valued at $2.7 billion with a 13.45% stock increase to $6.41; despite being pre-revenue, its eco-friendly mining approach may attract long-term investors.
- Importance of MP Materials: MP Materials operates the only large-scale rare-earth mine in the U.S., valued at $11 billion with an 8.49% stock increase to $61.35; it secured a $400 million investment from the Department of Defense and a $500 million partnership with Apple, ensuring stability in the U.S. rare-earth supply chain.
- USA Rare Earth Development: USA Rare Earth controls the Round Top deposit in Texas, valued at $3.2 billion with a 6.02% stock increase to $21.84; although still in the construction phase, it has raised $3.1 billion to support the establishment of a domestic rare-earth supply chain.
- Investment Outlook: While TMC, MP, and USA Rare Earth are all pre-revenue and face market volatility risks, their potential in the rare-earth and battery metal sectors makes them attractive for long-term investors.
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
Analysis of Investment Opportunities in Critical Minerals
- USA Rare Earth Prospects: USA Rare Earth is set to debut on public markets in March 2025 following a merger with a SPAC, with its Round Top deposit containing 15 of the 17 rare-earth elements, positioning it as a leader in the U.S. rare-earth market and likely to attract investor interest and drive stock price appreciation.
- Government Investment Support: The company has signed a letter of intent with the U.S. government for a $1.6 billion investment, which mitigates uncertainties surrounding the Round Top project and enhances its strategic position within the rare-earth supply chain.
- Deep-Sea Mining Potential: TMC The Metals Company focuses on harvesting polymetallic nodules from the seafloor and plans to partner with Korea Zinc for metal refining, which is expected to drive growth in copper and nickel markets to meet future demand.
- MP Materials Market Advantage: As the only fully integrated rare-earth producer in the U.S., MP Materials has secured over $500 million in funding from the Department of Defense and plans to launch a heavy rare-earth separation facility in 2026, further solidifying its market position and reducing price volatility risks.
See More
Investment Opportunities in Rare Earth Mining
- Government Support: The U.S. government plans to invest $1.6 billion in USA Rare Earth, significantly reducing risks associated with the Round Top project and enhancing its competitiveness in the rare earth market, likely attracting more investor interest.
- Production Capacity Expansion: MP Materials aims to commission a new heavy rare-earth separation facility at Mountain Pass by mid-2026, diversifying its product offerings while securing over $500 million in funding through a partnership with the Department of Defense, strengthening its market position.
- Deep-Sea Mining Prospects: TMC The Metals Company has partnered with Korea Zinc to harvest polymetallic nodules from the seafloor, which is expected to boost production of copper and nickel, addressing a projected 50% increase in demand and enhancing its competitiveness in the metals market.
- Strong Market Demand: With rising political interest in securing critical mineral supplies, companies like USA Rare Earth and MP Materials are gaining investor attention, which is expected to yield substantial returns for long-term investors.
See More
Mining Stocks: Risks and Opportunities for Investors
- TMC Overview: TMC The Metals Company focuses on collecting polymetallic nodules from the Pacific Ocean, currently valued at $2.7 billion with a 13.45% stock increase to $6.41; despite being pre-revenue, its eco-friendly mining approach may attract long-term investors.
- Importance of MP Materials: MP Materials operates the only large-scale rare-earth mine in the U.S., valued at $11 billion with an 8.49% stock increase to $61.35; it secured a $400 million investment from the Department of Defense and a $500 million partnership with Apple, ensuring stability in the U.S. rare-earth supply chain.
- USA Rare Earth Development: USA Rare Earth controls the Round Top deposit in Texas, valued at $3.2 billion with a 6.02% stock increase to $21.84; although still in the construction phase, it has raised $3.1 billion to support the establishment of a domestic rare-earth supply chain.
- Investment Outlook: While TMC, MP, and USA Rare Earth are all pre-revenue and face market volatility risks, their potential in the rare-earth and battery metal sectors makes them attractive for long-term investors.
See More
