TMC Shares Plummet Despite Q2 Loss and Regulatory Milestones

TMC the metals company reported a Q2 net loss of $74.3 million, missing analyst expectations. Despite the financial miss, the company announced regulatory and project milestones, including receiving notice of full compliance from NOAA and securing priority rights over exploration areas. TMC also secured strategic investments and maintained its target to begin commercial production in late 2027.

Title: TMC the Metals Company Reports Q2 Net Loss Amid Regulatory and Project Milestones

New York, July 2, 2025 — TMC the Metals Company Inc. (Nasdaq: TMC) reported its second-quarter 2025 financial results, including a net loss of $74.3 million, which missed analyst expectations. Despite the financial setback, the company announced significant regulatory and project milestones that could position it for future growth.

Financial Highlights

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

Regulatory Milestones

One of the notable achievements was the receipt of full compliance notice from the National Oceanic and Atmospheric Administration (NOAA) on its exploration applications. This confirmation allows TMC USA to maintain priority rights over the exploration areas, with both applications entering the certification stage in late July, expected to take approximately 100 days [1].

Project Updates

TMC released two economic studies, highlighting a combined Net Present Value (NPV) of $23.6 billion. The studies include a pre-feasibility study (PFS) for the NORI-D project with an NPV of $5.5 billion and a world-first declaration of mineral reserves for a polymetallic nodule project with 51 million tonnes (Mt) of probable mineral reserves [1].

The company expects to commence commercial production from the NORI-D area in the fourth quarter of 2027, subject to receiving a commercial permit. At steady state (2031 through 2043), TMC projects an average annual production rate of 10.8 million tonnes of wet nodules per annum (Mtpa) with an expected 18-year life of mine (LOM) [1].

Strategic Investments

TMC secured strategic investments from Korea Zinc and a registered direct offering (RDO) led by Michael Hess, Chief Investment Officer of Hess Capital, Brian Paes-Braga, Managing Partner at SAF Group, and Allseas Group S.A. The equity investment from Korea Zinc resulted in gross proceeds of $85.2 million, making it one of TMC’s largest strategic shareholders with ownership of approximately 5% of the Company’s outstanding common shares [1].

Operational Highlights

TMC and the Government of the Republic of Nauru signed a revised Sponsorship Agreement, ensuring Nauru will continue to receive existing financial benefits, training, and capacity-building programs. Similarly, TMC and the Kingdom of Tonga updated their Sponsorship Agreement for Tonga Offshore Mining Ltd (TOML) [1].

The company also announced the appointment of Michael Hess and Alex Spiro to its Board of Directors, bringing operational and legal expertise to support the U.S. strategy and accelerate progress toward commercial recovery of polymetallic nodules [1].

Industry Update

NOAA published draft revisions to regulations implementing the Deep Seabed Hard Mineral Resources Act (DSMHRA), including a consolidated exploration process, which could simplify the regulatory path for deep seabed mining companies [1].

Conclusion

While TMC reported a net loss for Q2 2025, the company has made significant strides in regulatory compliance and project milestones. The strategic investments and operational updates position TMC for potential growth and commercial production in the fourth quarter of 2027.

References

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