TMC the metals (NASDAQ:TMC) Announces Quarterly Earnings Results, Hits Expectations

Key Points

• TMC reported quarterly EPS of ($0.06), matching analyst expectations.
• NOAA now expects to decide on certification of TMC’s USA-A application by mid-December, later than the company hoped. Separately, TMC and Allseas cut estimated capital needed to reach first production from about $800 million to $300 million through a phased development plan.
• TMC reported $123 million in liquidity, which it expects to cover working capital and commitments for at least 12 months, while quarterly operating cash outflow rose to $19.4 million from $11.5 million a year earlier.

TMC the metals (NASDAQ:TMC - Get Free Report) posted its quarterly earnings data on Thursday. The company reported ($0.06) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.06), FiscalAI reports.

Here are the key takeaways from TMC the metals' conference call:

• NOAA now expects to decide on certification of TMC’s USA-A application by mid-December, later than the company had hoped. NOAA has not identified deficiencies, but certification would only begin the final environmental review and additional public-comment stages.
• TMC and Allseas revised the offshore plan to cut estimated capital needed to reach first production from about $800 million to $300 million shared between them. The phased approach targets 1 million tons annually at first, potentially rising to 1.5 million in year two, while deferring larger investments and potentially enabling positive EBITDA at early volumes.
• TMC is evaluating PAMCO’s Japanese plant as a toll-processing option if its Brownsville facility is not ready for initial production. Japan’s government has a financing plan to cover up to half of PAMCO’s required modifications, while TMC and PAMCO are still discussing the remaining costs; Brownsville investment remains contingent on U.S. government support.
• The company highlighted new peer-reviewed environmental studies, including plume modeling that it says found most mobilized sediment settling within 10 meters of collector tracks and plumes dissipating within two to five days after operations cease. TMC said its research dataset has supported 46 peer-reviewed studies, though the findings are part of the company’s case for the project.
• TMC reported $123 million of liquidity and said it expects this to cover working capital and capital commitments for at least 12 months, but Q3 operating cash outflow increased to $19.4 million from $11.5 million a year earlier. The lower net loss of $28.4 million versus $185 million was partly due to lower share-based compensation and more favorable non-operating items.

TMC the metals Stock Down 6.1%

Shares of TMC the metals stock traded down $0.15 during trading hours on Thursday, reaching $2.30. 5,240,190 shares of the company's stock were exchanged, compared to its average volume of 6,136,191. The business has a fifty day moving average of $3.29 and a two-hundred day moving average of $4.70. The company has a market capitalization of $1.01 billion, a P/E ratio of -3.15 and a beta of 2.22. TMC the metals has a 1 year low of $1.91 and a 1 year high of $10.05.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the company. Zacks Research raised TMC the metals from a "strong sell" rating to a "hold" rating in a report on Wednesday, November 4th. Stifel Nicolaus assumed coverage on TMC the metals in a research report on Friday, August 28th. They issued a "buy" rating and a $10.00 target price on the stock. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of TMC the metals in a research note on Thursday, October 15th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, TMC the metals currently has an average rating of "Moderate Buy" and an average price target of $10.44.

About TMC the metals

TMC the metals company Inc. is a deep-sea minerals exploration and development company focused on polymetallic nodules found on the ocean floor. The nodules contain metals including nickel, copper, cobalt and manganese, which are used in batteries, stainless steel and other industrial applications. The company's exploration activities are centered in the Clarion-Clipperton Zone of the Pacific Ocean. Through subsidiaries sponsored by Pacific island nations, TMC holds exploration contracts with the International Seabed Authority.

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