TMC the metals company (TMC) Q3 2024 earnings summary

Executive summary

• Plans to submit NORI's exploitation contract application to the ISA on June 27, 2025, with a strategy to maximize shareholder value by delaying major capital spending until regulatory clarity is achieved.

• Completed pre-feasibility study for the NORI-D Project and achieved major milestones in resource definition, pilot collection, and onshore processing trials.

• Raised $17.5 million through a registered direct offering in November 2024 and extended credit facilities to $38 million, strengthening liquidity.

• Developing a new services business leveraging deep-sea expertise, with advanced discussions and RFPs in the market.

• Focus remains on permitting and production for the NORI-D Project, with broader strategy to expand services and resource portfolio.

Financial highlights

• Reported Q3 2024 net loss of $20.5 million ($0.06/share), up from $12.5 million ($0.04/share) in Q3 2023; net loss for the nine months ended September 30, 2024 was $65.9 million.

• Exploration evaluation expenses rose to $11.8 million from $7.9 million year-over-year; G&A expenses increased to $8.1 million from $4.6 million.

• Cash used in operating activities for Q3 2024 was $5.7 million, and $29.7 million for the nine months; free cash flow was negative $5.8 million, improved from negative $12.6 million.

• Cash on hand at September 30, 2024, was $0.4 million, with $23.3 million raised from financing activities year-to-date.

• Total liabilities increased to $82.8 million from $58.0 million at year-end 2023.

Outlook and guidance

• Confident that cash on hand, recent offering proceeds, and $33.8 million undrawn credit will cover working capital and capex needs for at least 12 months.

• Quarterly cash use expected to remain below $5 million after application submission, with capital expenditures deferred until regulatory clarity.

• No plans to raise production capital or fund vessel upgrades until after regulatory certainty is achieved.

• The company anticipates continued significant operating losses and expenses as it advances toward commercialization and regulatory milestones.

• Strategy day to be announced before year-end to provide further project and economic updates.