TMC the metals NASDAQ: TMC said its two U.S. seabed-mining applications are advancing through regulatory milestones while its offshore collection system moves into procurement ahead of targeted commissioning in the fourth quarter of 2027.
During its second-quarter 2026 corporate update call, Chairman and Chief Executive Officer Gerard Barron said TMC USA’s consolidated USA-A application covers about 65,000 square kilometers and seeks both an exploration license and a commercial recovery permit. The National Oceanic and Atmospheric Administration, or NOAA, has completed substantial-compliance and full-compliance determinations for the application, according to the company.
Barron said publication of USA-A in the Federal Register is expected imminently, which would begin the public-comment process. NOAA has advised the company that certification is now expected in October 2026, delayed by administrative issues rather than an issue with the application, he said. As a result, TMC no longer expects a permanent grant during the first quarter of 2027, though Barron said the company still expects a permit before its targeted vessel commissioning date.
The company’s USA-B application covers approximately 122,000 square kilometers. NOAA is expected to publish a notice of intent to prepare an environmental impact statement for that application after certifying it in May, Barron said.
Offshore system enters procurement phase
TMC said its May agreement with Allseas established a framework for completing development, commissioning and operation of its first commercial nodule-production system. The initial configuration is designed to collect 3 million wet tons of polymetallic nodules annually and would include two collector vehicles, launch and recovery systems, a riser system, the Hidden Gem production vessel and a transfer vessel.
Basic engineering has been completed for long-lead equipment including the riser, launch and recovery systems, and collector umbilical, Barron said. The next procurement packages include compressor equipment, navigation equipment, riser-handling equipment, a derrick upgrade, and storage and offloading systems.
Fabrication is expected to run from the fourth quarter of 2026 through the third quarter of 2027, followed by installation and commissioning targeted for the fourth quarter of 2027. Barron said Allseas is expected to fund a significant portion of pre-production development costs, with recovery through production revenues.
Chief Financial Officer Craig Shesky said the company has not yet accrued the full amount it expects to spend with Allseas before production. TMC expects additional development costs, although Shesky said the company and Allseas expect the offshore development cost to come in below the estimate included in last year’s pre-feasibility study.
In response to an analyst question, Barron said TMC’s arrangement with Allseas is exclusive for offshore mining. It could become nonexclusive only if Allseas sought to deploy another system and TMC declined.
Brownsville processing plans and partnerships
TMC is evaluating a U.S. processing and refining hub at the Port of Brownsville, Texas, which it calls “Nodule City.” The company holds an exclusive right to negotiate a lease option for land at the port, but Barron said no investment decision has been made and future capital commitments would depend on U.S. government support.
The company is evaluating 1,466 acres across two parcels, including 735 acres on the shipping channel and an adjacent 731 acres. Pre-feasibility engineering for a possible 12-million-tonne-per-year industrial park is nearing completion, while feasibility-level engineering for an initial smelting stage is underway with Mariana Minerals, according to Barron.
The company said a fully loaded bulk carrier carrying roughly 60,000 tonnes of nodules would travel about 3,800 nautical miles from the Clarion-Clipperton Zone to Brownsville through the Panama Canal under its base-case route. It is also analyzing a route around Cape Horn.
Barron said TMC is engaged in funding discussions with multiple U.S. agencies identified in President Trump’s executive order related to critical minerals. However, Shesky clarified that an August 7 White House roundtable did not include an express investment in nodule collection. TMC said it does not currently intend to pursue other capital-markets transactions until it can provide further public updates on those processes.
Shesky said Mariana Minerals’ initial work is expected to involve “mid-single digit millions” of dollars over multiple quarters. The work is intended to advance feasibility studies needed before potential government funding, he said.
TMC also announced a mutual master services agreement with Eco Minerals, a U.S. exploration company pursuing its own NOAA application. Under the agreement, Eco Minerals may provide vessel charter, autonomous underwater vehicle equipment, marine surveys and related services, subject to availability. TMC would make available resource-definition, environmental-impact-assessment and permitting services.
Barron said the parties could conduct a joint campaign later this year, including additional survey work in TMC’s area to increase resource certainty and potentially work in Eco Minerals’ area if permissions are received.
International regulatory developments
Shesky said the U.S. has reiterated its longstanding position that, because it is not a party to the United Nations Convention on the Law of the Sea, it does not consider itself bound by seabed-mining rules administered by the International Seabed Authority, or ISA. TMC is pursuing its U.S. permitting path under the Deep Seabed Hard Mineral Resources Act, or DISHRA, while continuing to engage with the ISA.
The ISA made incremental progress on its mining code during its July session but did not establish a target date for completion, Shesky said. He also said an effort supported by China, Russia and Greenpeace to seek an International Tribunal for the Law of the Sea advisory opinion on deep-sea mining outside the UNCLOS and ISA framework did not advance.
Separately, Shesky said the Seabed Disputes Chamber of ITLOS ordered provisional measures regarding the rights of TMC subsidiaries NORI and TOML in ISA proceedings. The ISA Council subsequently approved a five-year extension of NORI’s exploration contract by consensus, he said.
Second-quarter results and liquidity
TMC reported a second-quarter net loss of approximately $60.1 million, or $0.14 per share, compared with a net loss of $74.3 million, or $0.20 per share, in the same period of 2025.
- Exploration and evaluation expenses totaled $56.1 million, compared with $10.5 million a year earlier.
- General and administrative expenses were $15.6 million, compared with $11.5 million in the prior-year quarter.
- Net cash used in operating activities was $20.1 million, compared with $10.7 million in the prior-year quarter.
- Free cash flow was negative $20.2 million, compared with negative $10.7 million a year earlier.
The increase in exploration and evaluation expenses primarily reflected $37.5 million of charges owed to Allseas following the May development and operating agreement. Of that amount, $34.8 million represents deferred costs payable on a tonnage basis after production begins, while $2.4 million was settled in shares on July 2.
TMC reported liquidity of $143 million as of June 30, including $44 million available under an undrawn Barron and ERAS credit facility. Accounts payable and accrued liabilities totaled $52.1 million, including $40.5 million owed to Allseas. The company said it believes cash on hand will be sufficient to meet working-capital and capital-expenditure commitments for at least the next 12 months.
Shesky also said TMC will not seek to extend warrants from its 2020 SPAC transaction that are scheduled to expire in September 2026. The board concluded that extending the 15 million public warrants would also require an extension of 9.5 million private warrants that can be exercised cashlessly and could dilute shareholders without providing additional cash proceeds, he said.
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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