Renowned oceanographer Jacques Cousteau once pondered, “Once the sea captivates you, it keeps you enthralled in its web of wonder forever.” Similarly, The Metals Company (TMC), a firm specializing in deep-sea minerals exploration, has left investors spellbound, with shares skyrocketing an impressive 576% this year.
Does this deep-sea treasure hunter belong in your portfolio? Let’s take a deeper dive.
What lies beneath
A Vancouver-based company named TMC is planning to gather rocks from the ocean floor known as polymetallic nodules. These ancient, nodule-like structures, roughly the size of potatoes, are filled with valuable minerals such as nickel, cobalt, manganese, and copper. These minerals are deemed essential for U.S. manufacturing, energy production, construction, and defense sectors.
These elements are equally important for a more carbon-constrained tomorrow. Nickel, cobalt, and manganese play significant roles in various electric vehicle (EV) battery compositions, while copper has an essential function in EV wiring, motors, charging stations, and even solar panel systems.
The extensive range of applications for these metals underscores their significant role in the American economy. Let me give you a glimpse:
1. Aerospace industry: Aluminum and titanium are crucial components in building lightweight, yet strong aircraft parts, which contribute to fuel efficiency and safety.
2. Automotive sector: Copper is an essential element in electric vehicle batteries, while steel is fundamental for the structure of conventional automobiles.
3. Construction: Steel and copper are vital materials in constructing buildings, bridges, and infrastructure projects that support our economy’s growth and development.
4. Technology industry: Gold, silver, and palladium are integral parts of electronics, from computers and smartphones to medical devices and satellites.
5. Energy sector: Copper is a key component in power generation and transmission systems, ensuring the stability and reliability of our electrical grid.
| Nickel | Cobalt | Copper | Manganese |
|---|---|---|---|
| Batteries | Aircraft engines | Air conditioners | Aluminum alloys |
| Military-grade alloys | Dental prosthetics | Circuit board | Ceramic glazes |
| Nuclear reactors | Industrial magnets | Microwaves | Pesticides |
| Stainless steel | Paints & varnishes | Telecom cables | Railroad tracks |
| Turbines | Tires | Transformers | Welding rods |
Approximately 80% or more of America’s essential minerals, which are the building blocks for various metals, originate from foreign countries. With the rising geopolitical conflicts worldwide, this is a significant security matter. However, it’s not just about national security; it also has environmental implications. The mines where these minerals are extracted often endanger some of Earth’s most diverse and fragile ecosystems, including the rainforests in Indonesia and the Philippines.
The Minerals Corporation (TMC) claims that deep-sea mining can provide essential minerals with minimal disturbance to delicate environments, while vowing to share all environmental consequences openly. Nonetheless, ecological organizations and marine researchers express concern about damaging the ocean floor, potentially jeopardizing biodiversity in recovery-challenged ecosystems. Similar to other developing technologies, the ecological costs are under discussion – thus, TMC’s portrayal should be met with caution.
)
TMC suggests that deep-sea mining allows access to vital minerals while causing less disruption to vulnerable ecosystems and pledges transparency on environmental effects. However, conservation groups and marine experts worry about the possible threats to biodiversity in slow-to-recover ecosystems if they recover at all, by disturbing the ocean floor. Since many new technologies involve debating their ecological drawbacks, TMC’s stance should be regarded with some skepticism.
TMC hasn’t started mining
The company The Metals Company possesses exploration permits for two vast regions within the Clarion-Clipperton Zone of the Pacific Ocean, a 1.7 million-square-mile underwater plain lying between Hawaii and Mexico, rich in mineral-laden nodules. Nevertheless, TMC cannot initiate commercial activities in these areas until the International Seabed Authority (ISA), an organization established by the United Nations to govern deep-sea mining activities, completes and finalizes its pending regulations for deep-sea mining operations.
While waiting for further developments, TMC is taking a cautious approach. In late April, shortly after President Donald Trump issued an executive order aimed at increasing domestic access to offshore minerals deemed critical, TMC submitted an application for a mining license via a U.S. law enacted in 1980.
In the Clarion-Clipperton Zone, the International Seabed Authority is responsible for overseeing mineral extraction activities. Yet, the United States has not ratified the UN treaty that established the ISA, and does not officially acknowledge its authority. This means that if the Trump administration chooses to independently claim America’s right to mine in the Pacific, it might offer a swifter legal route for TMC to initiate commercial operations – though this path could be seen as contentious by others.
Is TMC a buy?
This year’s staggering 576% surge in TMC’s (The Metals Company) value serves as a reminder of the challenges inherent in evaluating a company that doesn’t generate revenue and doesn’t have any marketable products yet. In today’s meme-stock climate, valuations can easily drift away from traditional business fundamentals. TMC is a clear illustration of this phenomenon.
Similar to numerous new businesses, TMC is experiencing rapid cash expenditure. In Q1 of 2025, TMC recorded a net loss of $20.6 million. However, CEO Gerard Barron expressed confidence in the company’s future, highlighting that over $500 million has been invested into cutting-edge research and development in deep-sea science, engineering, and technology to construct the world’s most sophisticated platform for deep-sea mineral extraction.
Management is optimistic that their financial position at the end of Q1 – which includes $2.3 million in cash and $41.5 million in accessible credit – will be sufficient to fund operations until at least May 2026. Notably, the company has just secured an $85 million equity investment from Korea Zinc, a leading global refiner of non-ferrous metals.
It’s undeniable that The Mining Company (TMC) holds immense promise, but it also carries substantial risks. The venture of deep-sea mining remains untested as a viable business strategy. Should TMC receive approval to gather polymetallic nodules in the Pacific, there’s uncertainty whether they can execute it successfully and generate profits.
In a 2021 investor meeting, TMC presented aggressive predictions for their key NORI-D project in the Clarion-Clipperton Zone. They forecasted that commercial manufacturing would commence by 2024, leading to approximately $2 billion in EBITDA by 2027. The projected annual revenue from 2030 to 2046 is a substantial $4.7 billion. These figures were calculated under various conditions, such as optimal commodity prices and permitting schedules, as well as the attainment of full-scale production levels. However, these numbers have not been revised since the initial presentation.
As an ardent investor, I must caution that The Metals Company (TMC) remains a high-risk venture at this stage, due to the lack of a clear route to commercial production and insufficient information regarding its projected income and profits. If you’re considering initiating a position, be prepared for turbulent market conditions in the near future, as we await further clarity from TMC.
Read More
- Gold Rate Forecast
- KPop Demon Hunters: Is Your Idol by Saja Boys Inspired by Real K-Pop Bands? Here’s What We Know
- Justin Bieber Teases New Album ‘SWAG’ with Tracklist Reveal
- 15 Best Sherlock Holmes Actors, Ranked from Worst to Best
- Ultraman Live Stage Show: Kaiju Battles and LED Effects Coming to America This Fall
- Superman’s Record-Breaking $21M+ Thursday Box Office: Highest of 2025
- 📢 BrownDust2 X BiliBili World 2025 Special Coupon!
- Tokyo Game Show 2025 exhibitors announced
- Superman’s Rotten Tomatoes Score Blasts Past Expectations—Shocks Even the Harshest Critics
- Dakota Johnson-Anne Hathaway’s Verity Release Date Out: Here’s When Colleen Hoover’s Movie Adaptation Will Hit the Screens
2025-07-20 03:31