TMC the metals Co Inc. (NASDAQ: TMC)

TMC the Metals Co Inc., also known as TMC, operates in the deep-sea minerals exploration industry, with a focus on the collection, processing, and refining of polymetallic nodules found on the seafloor in international waters of the Clarion Clipperton Zone (CCZ). The company's primary goal is to build a carefully managed, shared stock of metal that can be used, recovered, and reused for generations to come.

TMC's main business activities involve the exploration and potential commercial-scale collection of polymetallic nodules, which contain significant amounts of metals such as nickel, copper, cobalt, and manganese. These metals are critical for the transition to low-carbon energy technologies, and TMC operates in a geological submarine fracture zone of abyssal plains and other formations in the Eastern Pacific Ocean, known as the CCZ. The CCZ is a vast area, with a length of around 7,240 kilometers and a width of approximately 4,500 kilometers, spanning approximately 4,500,000 square kilometers.

The company generates revenue by exploring and potentially collecting polymetallic nodules, which are unique rocks that sit unattached to the seafloor and contain high concentrations of nickel, manganese, cobalt, and copper. These nodules are attractive for metal production, particularly for battery cathode precursors, copper cathode, and manganese silicate. TMC's position within the industry is unique due to its exclusive exploration and commercial rights to three polymetallic nodule contract areas in the CCZ, its ability to process and refine metals from polymetallic nodules, and its commitment to building a carefully managed, shared stock of metal that can be used, recovered, and reused for generations to come. The company's competitive strengths include its exclusive exploration and commercial rights, its ability to process and refine metals, and its commitment to sustainability.

TMC's customers are primarily companies involved in the production of electric vehicles, renewable energy storage, and other industries that require critical metals such as nickel, copper, cobalt, and manganese. These customers require the metals that TMC can potentially provide through the collection and processing of polymetallic nodules.

TMC's primary products are polymetallic nodules, which are unique in that they are not bound to the seafloor, making it easier to collect and process them. The characteristics of polymetallic nodules, such as their high grades of four critical metals, low head-grade variability, and potentially easy to process, make them an attractive source of metal for the production of battery cathode precursors, copper cathode, and manganese silicate.

The market opportunity for TMC is driven by the growing demand for energy transition minerals, including nickel, copper, cobalt, and manganese, which are critical for the production of electric vehicles, renewable energy storage, and other low-carbon technologies. TMC's primary customers are companies involved in the production of electric vehicles, renewable energy storage, and other industries that require these critical metals.

In addition to its polymetallic nodule collection and processing operations, TMC is also developing a flowsheet together with a metallurgical process design firm, Hatch, to process and refine the collected nodules into critical metals. The company has completed lab-scale test work and offshore campaigns to collect a bulk sample for pilot-scale metallurgical testing. It is continuing with a metallurgical test program to demonstrate the feasibility of its processing and refining technology.

TMC has also entered into a binding MoU with PAMCO to study the possibility of using PAMCO's facility in Hachinohe, Japan to produce up to 1.3 million tonnes of net polymetallic nodules per year. PAMCO is continuing to study the addition of a converting facility to process the intermediate alloy to nickel-copper-cobalt matte, which is an upgraded intermediate battery supply chain feedstock.