Tmc The Metals Company Inc. · NASDAQ:TMC
Tmc The Metals — Q3 2021 Earnings Presentation
29 slides from Tmc The Metals's earnings presentation, Nov 11, 2021
Slide 1: Q3 Company Update
Better Metals for EVs Q3 Company Update November 11, 2021
Slide 2: Forward looking statements
2 Better Metals for EVs Forward looking statements. Certain statements made in this presentation are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are
Slide 3: Agenda
3 Better Metals for EVs Agenda. Market development update 4 Our value proposition 10 Project development roadmap 11 Financial & project development highlights 12 Project development progress & next milestones 13 Financial update 24 Setting the record straight 28
Slide 4: Green future is metallic
4 Better Metals for EVs “The energy transition starts and ends with metals.” “To hit the 1.5° C, a five-fold increase in base metal supply would be needed, requiring an investment of US$2 trillion.” “Meeting demand could be mission impossible.” Woodmac October 2021 Green future is metallic.
Slide 5: Ambitious gigafactory plans without plans to supply them
5 Better Metals for EVs MARKET UPDATE Ambitious gigafactory plans without plans to supply them. Expected lithium-ion gigafactories in the United States, 2030 Company State GWh Tesla Texas 100 Ford / SK Innovation Kentucky 86 Ultium Tennessee 70 Tesla / Panasonic Nevada 60 Freyr TBD 50 Ford / SK Inno
Slide 6: Where will battery metals for US gigafactories come from?
6 Better Metals for EVs MARKET UPDATE Where will battery metals for US gigafactories come from? 1.2 TWh battery cell manufacturing capacity* “US-based OEMs would not be able to fulfil up to 35 million orders for EVs by 2030.” Metal required* US production US reserves Steve LeVine, The Electric, Octo
Slide 7: Hello, metal independence
7 Better Metals for EVs MARKET UPDATE Hello, metal independence. ~50,000-mile supply chain controlled by China - “Currently, the U.S. has limited raw Metals mining Refining Cathode production Battery cell production material production capacity and virtually no processing capacity.” - “There could b
Slide 8: A potential solution off the US western seaboard
8 Better Metals for EVs MARKET UPDATE A potential solution off the US western seaboard. ~1,500-mile supply chain re-shored in the Unites States Metals mining Refining Cathode production* Battery cell production - “Polymetallic nodules on the ocean floor represent a significant domestic opportunity f
Slide 9: Here is what a polymetallic nodule field looks like
9 Better Metals for EVs Here is what a polymetallic nodule field looks like.
Slide 10: Abundant, secure, low production and ESG cost supply of metals
10 Better Metals for EVs OUR VALUE PROPOSITION Abundant, secure, low production and ESG cost supply of metals. Abundant The world’s largest estimated source of battery metals with enough nickel, copper, manganese and cobalt in situ to potentially electrify 280 million EVs1 High grade Four battery me
Slide 11: Roadmap
11 Better Metals for EVs PROJECT DEVELOPMENT ROADMAP Funded with Targeting production in 2024. current cash 2011-2020 2021 2022 2023 2024 2025— Resource - 3 exploration - SEC Reg. SK 1300 - Application for - Exploitation - Applications for contracts compliant resource exploitation contract, NORI-D e
Slide 12: Major project development milestones achieved, enough cash to apply for ISA Exploitation Contract
12 Better Metals for EVs HIGHLIGHTS Major project development milestones achieved, enough cash to apply for ISA Exploitation Contract. YTD SUMMARY Q3 Result - Net loss of $36.7 million and loss per share of Business combination with SOAC $0.18 for Q3 2021, compared to a net loss of $6.8 Completed tr
Slide 13: SEC SK 1300 compliant technical resource statements on NORI and TOML areas
13 Better Metals for EVs PROJECT DEVELOPMENT PROGRESS We have issued SEC SK 1300 compliant technical resource statements on NORI and TOML areas. TMC exploration contract area NORI1 TOML2 Marawa Sponsoring Republic of Kingdom of Republic of State Nauru Tonga Kiribati Exploration area 74,830 km2 74,71
Slide 14: It is the largest undeveloped nickel project on the planet
14 Better Metals for EVs PROJECT DEVELOPMENT PROGRESS It is the largest undeveloped nickel project on the planet. World’s largest undeveloped nickel projects World’s largest nickel producers Total estimated resources (inferred, indicated & measured), in Mt1,3 Total resources (inferred, indicated & m
Slide 15: NORI-D project estimated at $6.8 billion in net present value
15 Better Metals for EVs PROJECT DEVELOPMENT PROGRESS Based on SK 1300 compliant Initial Assessment, NORI-D project estimated at $6.8 NORI-D Financial Model1 $ billions unless otherwise noted billion in net present value. Prices CRU forecast Current price Delta Nickel $16,106/t $19,590/t 22% Copper
Slide 16: Final ISA exploitation regime expected by July 2023
16 Better Metals for EVs PROJECT DEVELOPMENT PROGRESS Final ISA exploitation regime expected by 9 July 2023. Timeline July 2011 ISA started work on the exploitation regime July 2016 1st draft of regulations and terms of exploitation contract released March 2019 4th draft of regulations and terms of
Slide 17: What we need to do to secure an exploitation contract
17 Better Metals for EVs PROJECT DEVELOPMENT PROGRESS What we need to do to secure an exploitation contract. Q3 2023 315 days* Q3 2024* Application for NORI-D ISA process ISA exploitation Components: ✓ Certificate of Sponsorship 45 days 120 days 60 days 90 days contract for ✓ Mining Plan Secretary G
Slide 18: Record-setting four offshore environmental campaigns in nine months
18 Better Metals for EVs PROJECT DEVELOPMENT PROGRESS Record-setting four offshore environmental campaigns in nine months Image 4E Image 5B totaling 148 days at sea. Campaign 4E (21 days at sea) Campaign 5B (40 days at sea) Serviced the oceanographic moorings deployed at Pelagic biology studies of N
Slide 19: Pilot collection system being assembled for wet test and pilot trial next year
19 Better Metals for EVs PROJECT DEVELOPMENT PROGRESS Pilot collection system being assembled for wet test and pilot trial next year. Hidden Gem, our pilot surface production vessel, is Launch & Recovery System Pilot collector robot is being assembled in a nearby undergoing conversion in a shipyard
Slide 20: Environmental Impact Statement lodged with the ISA for pilot trial
20 Better Metals for EVs PROJECT DEVELOPMENT PROGRESS Environmental Impact Statement (EIS) lodged with the ISA for pilot trial in NORI-D next year. 12 week planned pilot trial at NORI-D in 2022 260 hours full system testing 3,600 wet tonnes of nodules to be collected 0.5 km impacted directly by coll
Slide 21: Independent plume-modelling for the pilot trial shows limited, localized impact
21 Better Metals for EVs PROJECT DEVELOPMENT PROGRESS Independent plume-modelling for the pilot trial shows Midwater plume from the return of seawater used limited, localized impact. for nodule transport predicted to dilute to natural background levels within a few hundred meters of the outlet Indep
Slide 22: Onshore, we have proven we can turn nodules into manganese silicate and NiCuCo alloy
22 Better Metals for EVs PROJECT DEVELOPMENT PROGRESS 2 Better 2 2 BetterBetter Metals Metals for for for EVs Metals EVsEVs Onshore, we have proven we can nsns turn nodules into manganese nsore ore ore develop develop develop ent entent silicate and NiCuCo alloyilot ilot &ilotlant lant lant matte. r
Slide 23: What we are focusing on next
23 Better Metals for EVs NEXT MILESTONES What we are focusing on next. Offtakes & strategic partnerships - Secure offtake for Project Zero products (manganese silicate, NiCuCo intermediate) - Finalize Project Zero offshore economics with Allseas - Finalize Project Zero onshore partner and site - Sec
Slide 24: Income statement highlights: three months ended Sept 30, 2021
24 Better Metals for EVs FINANCIAL UPDATE Income statement highlights: three months ended Sept 30, 2021. ($mm) Q3 2020 Q3 2021 Change Exploration expenses 4.6 23.8 19.2 Offshore technology development 2.7 17.8 15.1 Offshore environmental program 0.3 1.0 0.7 Onshore flowsheet development 0.3 1.2 0.9
Slide 25: Cash flow highlights: three months ended Sept 30, 2021
25 Better Metals for EVs FINANCIAL UPDATE Cash flow highlights: three months ended Sept 30, 2021. ($mm) Q3 2020 Q3 2021 Change Cash used in operating activities 3.8 10.4 6.6 Capital expenditures - - - Free cash outflow 3.8 10.4 6.6 Less: non-recurring items - (0.6) (0.6) Transaction costs related to
Slide 26: Income statement highlights: nine months ended Sept 30, 2021
26 Better Metals for EVs FINANCIAL UPDATE Income statement highlights: nine months ended Sept 30, 2021. ($mm) Q1-Q3 2020 Q1-Q3 2021 Change Exploration expenses 35.7 80.2 44.5 Offshore technology development 29.5 41.7 12.2 Offshore environmental program 2.1 2.9 0.8 Onshore flowsheet development 0.5 2
Slide 27: Cash flow highlights: nine months ended Sept 30, 2021
27 Better Metals for EVs FINANCIAL UPDATE Cash flow highlights: nine months ended Sept 30, 2021. ($mm) Q1-Q3 2020 Q1-Q3 2021 Change Cash used in operating activities 21.4 28.3 6.9 Capital expenditures 0.6 3.8 3.2 Acquisition of exploration contract 0.6 3.4 2.8 Acquisition of equipment - 0.4 0.4 Free
Slide 28: Shortseller's report
28 Better Metals for EVs SETTING THE RECORD STRAIGHT S ortseller’s report
Slide 29: Q&A. Investor Contact
Better Metals for EVs Investor Contact investors@metals.co Q&A. Media Contact media@metals.co Follow us
TMC the metals company — Q3 2021 Earnings Presentation on 6ix