TMC the metals NASDAQ: TMC said its first-quarter 2026 update centered on accelerated execution toward commercial polymetallic nodule production, highlighted by a newly signed production agreement with offshore engineering partner Allseas.
Chairman and Chief Executive Officer Gerard Barron said the agreement, signed May 11, is intended to enable the company to complete, commission and operate what it describes as the first commercial polymetallic nodule collection system. Barron said TMC continues to expect a commercial recovery permit during the first quarter of next year, while noting that certain comment periods in the regulatory process must remain open for 60 days.
“If 2025 was about transformational, 2026 is about accelerated execution,” Barron said. He said TMC’s strategy has relied on partnerships across offshore operations, onshore processing and refining, and project execution, citing Allseas, PAMCO, Glencore’s XPS, Hatch and Korea Zinc among the groups that have worked with nodule-derived materials.
Allseas Agreement Advances Offshore Production Plans
Barron said Allseas has agreed to fund a “significant portion” of pre-production costs, with those costs to be repaid over time after production begins. During the question-and-answer session, Barron clarified that investors should “continue to plan on us sharing” offshore capital spending with Allseas.
Chief Innovation and Offshore Technology Officer Rutger Bosland described the planned offshore system as an integrated commercial production model designed for continuous operations. The system would collect nodules from the seafloor, lift them to the Hidden Gem production vessel, dewater and temporarily store them, and then transfer them to vessels for shipment to shore-based processing facilities.
Bosland said the operating model includes offshore collection, vertical transport, transfer vessels, support vessels, environmental monitoring, adaptive management and downstream logistics. He said Allseas has substantially advanced and completed concept and basic engineering work for key long-lead packages, including the riser, launcher recovery system, umbilical and vessel integration works.
The company said that puts the program in position to move into procurement and subcontracting, with integration and commissioning of the offshore production system targeted for late 2027. In response to a webcast question, Barron said commissioning means getting equipment installed onboard, ensuring components work together and preparing for testing ahead of commercial production.
Company Evaluates Cost Reductions and Scaling Options
Bosland said TMC and Allseas are evaluating potential future optimizations, including larger production systems, autonomous and remote vessel operations, alternative logistics configurations and nuclear-powered vessels. He also said direct offloading of nodules from the Hidden Gem to dynamically positioned bulk carriers could simplify offshore transfer activities and reduce transport costs.
Asked by Water Tower Research analyst Dmitry Silversteyn about nearer-term cost reduction opportunities, Bosland said energy-use optimization and offshore logistics improvements could be implemented in the short term as the first vessel begins operating.
Brownsville Processing Site Remains Contingent on Support
Barron also discussed TMC USA’s exclusive right of negotiation with the Port of Brownsville in Texas over land that could support a large-scale metals processing and refining ecosystem. He said the proposed site covers about 1,466 acres across two parcels adjacent to the Brownsville shipping channel, with a pre-feasibility study underway for what he described as a potential 12 million-ton-per-year industrial park.
He stressed that there is “no capital commitment today” and that further development would remain contingent on government support. Barron said TMC is evaluating Brownsville not only as a processing site for its initial production area, but as a potential platform for broader U.S. critical minerals supply chains.
The company also said it entered a strategic partnership agreement with Mariana Minerals to advance potential processing and refining plans. Barron said Mariana’s team brings industrial project experience and software designed for large-scale mineral processing projects, including automation and AI-driven operational systems.
In the Q&A session, Barron said TMC aims to fill as much of a potential 12 million-ton processing complex as possible from its own license areas, while keeping flexibility to process material from other operators. He said the company is in discussions with some parties that may want to provide capital to secure processing throughput.
Financial Results and Liquidity
Chief Financial Officer Craig Shesky said TMC reported a first-quarter 2026 net loss of approximately $20.6 million, unchanged from the comparable period in 2025. Net loss per share was $0.05, compared with $0.06 in the year-earlier quarter.
Exploration and evaluation expenses rose to $13.3 million from $9.5 million a year earlier, which Shesky attributed to higher share-based compensation from third-quarter 2025 awards, employee retention costs and higher pre-feasibility study refresh costs, partially offset by lower Allseas engineering costs. General and administrative expenses rose to $20.7 million from $8.5 million, primarily due to amortization of one-time executive retention share-based compensation grants issued in the third quarter of 2025.
TMC recorded a $10.7 million gain on the change in fair value of warrants, reflecting a lower private warrant value due to a lower share price at the end of the quarter compared with year-end 2025 and a shorter maturity term. Shesky also cited higher interest income and a gain related to dilution of TMC’s ownership in The Metals Royalty Company, partly offset by equity-accounted investment losses.
Liquidity stood at approximately $164 million as of March 31, 2026, including $44 million available under an undrawn unsecured credit facility from Barron and Aris Capital LLC. Shesky said the liquidity figure included $9 million received on the final day of the quarter from sell-to-cover tax transactions on stock-based compensation, which was remitted to tax authorities shortly after quarter-end.
Net cash used in operating activities was $0.6 million in the quarter, compared with $9.3 million a year earlier. Excluding the timing effect of the tax withholding receipts, Shesky said cash used in operations would have been $9.6 million, in line with the first quarter of 2025.
Royalty Company Stake and Industry Positioning
Shesky said The Metals Royalty Company began trading on Nasdaq on April 8. He said TMC currently holds a 25% equity stake in the royalty company, with an indicated value of nearly $200 million based on TMCR’s roughly three-quarters-of-a-billion-dollar market capitalization.
The royalty company’s portfolio includes a 2% gross overriding royalty on the NORI area. Shesky said TMC retains the right to repurchase up to 75% of the NORI royalty over time at a capped return, which could reduce the royalty to 0.5%.
Management also emphasized what it described as growing U.S. policy support for offshore minerals and domestic processing capacity. Barron said TMC continues to speak with government officials and agencies regarding the sector’s potential role in reducing U.S. dependence on imported critical minerals.
Asked about political risk around the 2026 midterms and a potential change in Congress, management said the NOAA process is based on regulations established decades ago and does not depend on the outcome of the midterm elections. The company said it is proceeding through required public comment periods and regulatory steps.
About TMC the metals NASDAQ: TMC
TMC the metals company Inc, a deep-sea minerals exploration company, focuses on the collection, processing, and refining of polymetallic nodules found on the seafloor in California. It primarily explores for nickel, cobalt, copper, and manganese products. The company holds exploration and commercial rights in three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean. Its products are used in electric vehicles (EV), renewable energy storage markets, EV wiring, energy transmission, manganese alloy production required for steel production, and other applications.
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