TMC Metals Stock Plunges 9.4% Amid Production Plans and Strategic Investments

TMC Metals shares dropped 9.4% in early trading after announcing plans to commence production in Q4 2027 and highlighting a $23.6 billion net present value. The company emphasized strategic investments, including an $85 million investment from Korea Zinc, and advanced projects through strong partnerships in a capital-efficient manner.

TMC Metals Inc. (Nasdaq: TMC) reported its second quarter 2025 results, including a corporate update and financial highlights. The company announced plans to commence production in Q4 2027, with a significant focus on strategic investments and advanced projects.

Financial Highlights

TMC reported an operating loss of $22 million and a net loss of $74.3 million for the quarter ended June 30, 2025. The company's total cash position stood at approximately $115.8 million, with $10.6 million used in operations for the quarter [1].

Regulatory Compliance and Production Plans

The company received notice of full compliance from the National Oceanic and Atmospheric Administration (NOAA) on its exploration applications, reaffirming its priority right over exploration areas. This regulatory milestone is expected to streamline the path to production, with TMC targeting Q4 2027 for the start of commercial operations [1].

Economic Studies and Mineral Reserves

TMC published two economic studies, highlighting a combined net present value (NPV) of $23.6 billion. The pre-feasibility study (PFS) for the NORI-D project, with an NPV of $5.5 billion, marked a world-first declaration of mineral reserves for a polymetallic nodule project. The study also outlined a potential steady-state production rate of 10.8 million tonnes of wet nodules per annum, with an expected 18-year life of mine [1].

Strategic Investments

TMC announced a strategic equity investment from Korea Zinc, a world leader in non-ferrous metal refining and precursor Cathode Active Material (pCAM) technology. The investment of approximately $85.2 million, in exchange for common shares and warrants, became one of TMC’s largest strategic shareholders, owning approximately 5% of the company’s outstanding common shares [1].

Operational Highlights

TMC renewed its partnerships with Nauru and Tonga, reaffirming its commitment to delivering lasting benefits to these Pacific nations. The company also appointed Michael Hess and Alex Spiro to its Board of Directors to support its U.S. strategy and accelerate progress toward commercial recovery of polymetallic nodules in international waters under the existing U.S. seabed mining code [1].

Industry Update

NOAA proposed revisions to regulations implementing the Deep Seabed Hard Mineral Resources Act (DSMHRA), including a consolidated exploration process. These regulatory changes aim to streamline the approval process for deep seabed mineral activities [1].

Stock Performance

TMC Metals shares dropped 9.4% in early trading following the announcement of production plans and strategic investments. The market reaction reflects the company's ambitious production targets and the potential risks associated with regulatory compliance and market competition [1].

References

[1] https://investors.metals.co/news-releases/news-release-details/metals-company-announces-second-quarter-2025-corporate-update-0