Tmc The Metals Company Inc. · NASDAQ:TMC
Tmc The Metals — Q1 2024 Earnings Presentation
35 slides from Tmc The Metals's earnings presentation, May 13, 2024
Slide 1: Unlocking the World's Largest Estimated Undeveloped Source of Battery Metals
The Metals Company: Unlocking the World’s Largest Estimated Undeveloped Source of Battery Metals May 13, 2024
Slide 2: Forward looking statements
2 Nasdaq: TMC Forward looking statements. This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that relate to future events, TMC the metals company Inc.
Slide 3: Steve Jurvetson joins Board of Directors as Vice Chairman
3 Nasdaq: TMC TMC welcomes renowned Silicon Valley investor Steve Jurvetson to Board of Directors as Vice Chairman and Special Advisor to CEO. ‒ As a former long-standing board member of Tesla and a current board member of SpaceX, Mr. Jurvetson brings a wealth of experience in helping companies navi
Slide 4: TMC liquidity of $49 million at March 31, 2024
4 Nasdaq: TMC TMC liquidity of $49 million at March 31, 2024, including $45 million credit facility capacity. $2.9 million drawn on ERAS/Barron facility subsequent to March 31. USD Millions 225.0 200.0 175.0 Add'l capacity on new S-3 universal shelf filing 150.0 100.0 125.0 100.0 Add'l capacity on p
Slide 5: Summary since last quarterly update
5 Nasdaq: TMC Summary since last quarterly update: massive data submission, new board member and utilization of unsecured credit facility. Q1 2024 results Business developments: - $11.9 million cash used in operations in Q1 2024 - Steve Jurvetson Joins TMC’s Board of Directors as Vice Chairman and S
Slide 6: Agenda
6 Nasdaq: TMC Agenda. Our value proposition 7 Recent industry headlines 13 Environmental Impact Statement progress 17 Regulatory update 22 Financial highlights 25 Appendix 29
Slide 7: Milestone progress on the NORI-D Project
7 Nasdaq: TMC Milestone progress: we are doing what we said we’d do on the NORI-D Project. What we said we’d do What we have already done Key remaining items for NORI exploitation contract application Resource & project economics: Resource definition / Initial Assessment: COMPLETE show the resource
Slide 8: Why nodules?
Why nodules? Polymetallic Far offshore Very deep One new nodule project Far away from people, The deeper you go, can replace three new mines no physical impact on the less life you will find. on land. communities. Unattached Portable No tailings, near No overburden to remove, no Once nodules are tra
Slide 9: Nodule composition is well-suited for EV battery metal needs
9 Nasdaq: TMC Nodule composition is well-suited for EV battery metal needs. Metal Metal contained value1 MANGANESE requirements 6.6 kg 7.1 kg 28% COBALT 11% 56 kg NICKEL 43% POLYMETALLIC SEAFLOOR NODULE 53 kg ELECTRIC CAR 18% COPPER 75kWh battery with NMC811 chemistry 1 Contained metal value of poly
Slide 10: We have demonstrated we can turn nodules into nickel sulfate
10 Nasdaq: TMC We have demonstrated we can turn nodules into nickel sulfate, indicative of battery market suitability pending confirmation of preliminary assays. - NORI has produced what is believed to be the first nickel sulfate ever generated from polymetallic nodules - The sulfate, whose quality
Slide 11: Nodule composition also suited for infrastructure, defense and energy transition
11 Nasdaq: TMC Nodule composition is also well- suited for infrastructure, defense and the energy transition in general.
Slide 12: Ranked #1 and #2 largest undeveloped nickel projects
12 Nasdaq: TMC TMC: ranked in 2022 and 2023 as #1 and #2 largest undeveloped nickel projects on the planet1; the alternative to Russian- and Chinese-funded supply. World’s largest nickel projects – 2023 World’s largest nickel operations ranked by resource Total est. resources (inferred, indicated &
Slide 13: France softens 'ban' position; Belgium introduces deep-sea mining legislation
13 Nasdaq: TMC Planning for the inevitable: France softens ‘ban’ position through joint statement with China on ocean protection, while Belgium introduces new legislation on future deep-sea mining. China / France Belgium Deep-sea Joint Ocean Statement Mining Legislation "Both countries remain commit
Slide 14: Chinese contractors intend to submit EIS for collector test
14 Nasdaq: TMC Chinese contractors intend to submit Environmental Impact Statements for collector test commencing in 2025… China Minmetals Corporation (CMC) Beijing Pioneer Hi Tech Development Corporation (BPC) The ISA reported that CMC had announced a stakeholder The ISA reported that BPC had annou
Slide 15: Increasing likelihood of U.S. government support
15 Nasdaq: TMC …increasing the likelihood of tangible support, potentially financial, from the U.S. government. U.S Lawmakers Push for Deep-Sea Mining Former National Security, Defense Officials Funding in New Bill Push for Ratification of UN Treaty to Boost Mar 2024 Deep-Sea Mining Mar 2024 In Marc
Slide 16: Tesla and GM shareholder proposals on deep-sea minerals
16 Nasdaq: TMC Tesla and GM: activists trying to push shareholders to vote ‘yes’ against future deep-sea mineral sourcing. Both boards recommended voting ‘no.’ Proxy filing on April 17, AGM on June 13 Proxy filing on April 24, AGM on June 6 “The Board recommends a vote AGAINST the stockholder propos
Slide 17: Video
17 Nasdaq: TMC Video available here: https://vimeo.com/945804461/0a52d29516
Slide 18: EIS based on one of the largest deep-sea datasets ever compiled
18 Nasdaq: TMC Environmental Impact Statement: based on one of the largest deep-sea datasets ever compiled. Campaign 4D Campaign 5C Campaign 7C Campaign 5A Campaign 5D Campaign 7B 1&2 Campaign 4E Campaign 5E Campaign 8A Campaign 5B Campaign 7A 1&2 Campaign 8B * Assuming the average length of a campa
Slide 19: EIS addressing six primary concerns
Our EIS is focusing on addressing six primary concerns. Preliminary results are encouraging on every one of them. Seafloor plumes Midwater plumes Carbon Concern: “Seafloor plumes could travel Concern: “Midwater plumes could travel Concern: “Planet’s biggest carbon sink 10,000s km2 beyond mining site
Slide 20: Limited seafloor plume limits other impacts on biodiversity and carbon
20 Nasdaq: TMC As the seafloor plume is limited in scale and scope, it also limits other potential impacts on biodiversity and carbon sinks, with no known pathways for carbon to reach atmosphere.
Slide 21: Carbon in abyssal plains is 1.5% of carbon in surface sediments
21 Nasdaq: TMC Carbon in abyssal plains accounts for just 1.5% of total carbon buried in surface sediments and is not bioavailable for CO2 conversion.
Slide 22: Regulated by the International Seabed Authority
22 Nasdaq: TMC Regulated by the International Seabed UNCLOS Parties Authority established UNCLOS Signatories in 1994 by UNCLOS. - The International Seabed Authority (ISA) was established in 1994 by the United Nations Convention on the Law of the Sea (“UNCLOS”) and regulates seabed minerals beyond na
Slide 23: Consolidated regulatory text released for Mining Code negotiations
23 Nasdaq: TMC Consolidated regulatory text now released, signaling transition to the final phase of Mining Code negotiations. Regulatory Text - In November 2023, the Council agreed to consolidate the draft text, harmonizing and cleaning up the text into one document, making it easier to negotiate.
Slide 24: ISA progress toward final regulations; NORI reserves legal rights
24 Nasdaq: TMC ISA making progress toward final regulations, while TMC subsidiary NORI reserves legal rights to submit application before final regulations are in place. Timeline 2011 Fiji requests the ISA to prepare workplan for adopting the Mining Code 2012 ISA Secretariat prepares a workplan for
Slide 25: NORI-D project estimated at $6.8 billion NPV
25 Nasdaq: TMC Based on SEC-compliant NORI-D Financial Model2 Initial Assessment, NORI-D $ billions unless otherwise noted project estimated at $6.8 Estimated March 21 Initial Current prices, Increase billion NPV (est. $11.5 billion Prices Assess. w/CRU price forecast all other inputs unchanged usin
Slide 26: Income statement highlights: three months ended March 31, 2024
26 Nasdaq: TMC Income statement highlights: three months ended March 31, 2024. ($mm) Q1 2023 Q1 2024 Change Exploration and evaluation expenses 7.2 18.1 10.9 General and administrative expenses 6.2 6.6 0.4 Operating loss 13.4 24.7 11.3 Equity-accounted investment loss 0.2 0.1 (0.1) Change in fair va
Slide 27: Cash flow highlights: three months ended March 31, 2024
27 Nasdaq: TMC Cash flow highlights: three months ended March 31, 2024. ($mm) Q1 2023 Q1 2024 Change Cash used in operating activities 23.5 11.9 (11.6) Capital expenditures - 0.3 0.3 Acquisition of equipment - 0.3 0.3 Free cash outflow 23.5 12.1 (11.4)
Slide 28: Balance sheet highlights: quarter ended March 31, 2024
28 Nasdaq: TMC Balance sheet highlights: quarter ended March 31, 2024. Dec 31, 2023 Mar 31, 2024 Change Total Assets ($mm) 68.9 65.5 (3.4) Cash 6.8 4.0 (2.8) Accounts receivable and prepaid expenses 2.0 2.0 - Exploration contracts 43.2 43.2 - Right of use asset 5.7 5.2 (0.5) Equipment 1.1 1.0 (0.1)
Slide 29: Appendix
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Slide 30: Non-GAAP reconciliation
30 Nasdaq: TMC Non-GAAP reconciliation. Non-GAAP Financial Measures – Free Cash Outflow Free cash outflow is a non-GAAP financial measure. Free cash outflow is used in addition to and in conjunction with results presented in accordance with United States Generally Accepted Accounting Principles (“U.
Slide 31: Technical resource statements issued on NORI and TOML
31 Nasdaq: TMC TMC: technical resource statements issued on NORI + TOML, with an in situ estimated resource of Ni, Cu, Co and Mn sufficient to electrify the entire U.S. passenger car fleet1. TMC exploration contract area NORI2 TOML3 Marawa Sponsoring Republic of Kingdom of Republic of State Nauru To
Slide 32: TMC estimated resource could supply U.S. demand for nickel, cobalt and manganese
32 Nasdaq: TMC TMC estimated resource alone has The Metals Company the potential to supply U.S. demand for nickel, cobalt and manganese. 15,700,000 t Ni / 2,400,000 t Co / 13,300,000 t Cu / 350,000,000 t Mn Total Resource Estimated In situ quantities of nickel, copper, cobalt and manganese equivalen
Slide 33: Pilot collection system test and environmental monitoring campaign completed Dec 2022
33 Nasdaq: TMC Pilot collection system test and initial environmental impact monitoring campaign completed in Dec 2022. PILOT COLLECTOR SYSTEM TEST PROGRAM IN 2022 January Riser acceptance test February Thruster re-lift, dockside vessel commissioning, review of nodule offloading & handling test prog
Slide 34: Nickel from NORI-D could have lower lifecycle impacts
34 Nasdaq: TMC Benchmark: Nickel from NORI-D could have dramatically lower lifecycle impacts including substantially lower CO2e emissions. Global Warming Potential Kilogram of CO2e emissions per kilogram of nickel in nickel sulfate Lowest impact value 102.0 64.4 29.2 28.5 19.2 13.9 8.0 6.2 Laterite
Slide 35: Thank you
Investor Contact investors@metals.co Media Contact Thank you. media@metals.co Follow us
TMC the metals company — Q1 2024 Earnings Presentation on 6ix