Tmc The Metals Company Inc. · NASDAQ:TMC
Tmc The Metals — Q3 2024 Earnings Presentation
35 slides from Tmc The Metals's earnings presentation, Nov 14, 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 November 14, 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: Agenda
3 Nasdaq: TMC Agenda. Update on liquidity and NORI Application timing 4 NORI project update 8 Geopolitical update 14 Regulatory and environmental update 17 Financial highlights 22 Appendix 25
Slide 4: TMC liquidity of ~$49 million at Sept. 30, 2024, ~$75 million pro forma
4 Nasdaq: TMC TMC liquidity (cash plus borrowing capacity) of ~$49 million at Sept. 30, 2024, and ~$75 million pro forma liquidity following credit facility upsize and registered direct offering. USD Millions - Increased borrowing limits from our unsecured 225.0 credit facilities by $10.5 million in
Slide 5: Capital raise announced November 14: minimum $17.5 million registered direct offering
5 Nasdaq: TMC Capital raise announced November 14: Minimum of $17.5 million raised through equity issuance at $1.00 per share and half warrant with $2.00 exercise price. Issuer TMC the metals company Inc. Transaction Registered direct offering on existing effective Form S-3 ~$17.5 million minimum gr
Slide 6: NORI Application submission and strategy
6 Nasdaq: TMC NORI Application submission and strategy, from Corporate Update PR on Nov. 12. NORI application submission and strategy: ‒ NORI has set the date of June 27, 2025 for its expected submission of the Application to the ISA, after discussions with Nauru ‒ According to recent ISA Council de
Slide 7: Expanded company strategy and cost saving initiatives
7 Nasdaq: TMC Expanded company strategy and cost saving initiatives, from Corporate Update PR on Nov. 12. Expanded company strategy: ‒ Given the significant rise in seafloor resource exploration opportunities around the globe and the Company’s leadership position and experience in this industry, the
Slide 8: Significant milestones achieved, over $500 million raised
8 Nasdaq: TMC We have achieved significant milestones, having already raised over $500 million to progress our projects. What we have already raised1 What we have already done Key remaining items for NORI exploitation contract application Equity Resource definition / Initial Assessment: Year Raised
Slide 9: TMC valued at a fraction of other pre-production nickel developers
9 Nasdaq: TMC And yet, TMC is valued at a fraction of other pre-production nickel developers, most of which are yet to be fully permitted. Market cap/Net Asset Value of nickel developers 0.6 0.5 0.4 0.3 0.2 0.1 0 Chalice Magna Lifezone Canada Talon Metals Centaurus Premium FPX Nickel TMC* Mining Min
Slide 10: Regulatory uncertainty is likely the key depressor of TMC value
10 Nasdaq: TMC Regulatory uncertainty is likely the key depressor of TMC value. Informal survey of TMC analysts & institutional investors What moves the needle for TMC stock? Average ranking of milestones by importance. 1 most important Adoption of the ISA Mining Code Strategic investment at asset l
Slide 11: Delay raising production capital until after regulatory certainty
11 Nasdaq: TMC Given this dynamic, it is prudent to delay the raising of production capital until after regulatory certainty. Production capital 27 June 2025 2H 2025 NORI Application ISA Mining Code Submission to the ISA; indicative goal for ISA Secretariat notifies adoption the Council within 3 bus
Slide 12: We have now completed the PFS for the NORI-D Project
12 Nasdaq: TMC We have now completed the PFS for the NORI-D Project. Source: NORI Project Team
Slide 13: World's first commercial-scale nodule processing trial at PAMCO in Japan
13 Nasdaq: TMC The world’s first commercial-scale nodule processing trial is underway at PAMCO’s facility in Japan. ᠆ A world-first commercial-scale nodule processing trial on a 2,000-tonne sample of nodules has been underway at PAMCO’s Hachinohe facility in Japan since April ᠆ During the first phas
Slide 14: After U.S. election, multiple pending actions set to accelerate in 2025
14 Nasdaq: TMC With the U.S. election now over and Republicans controlling the White House and Congress, multiple pending actions are set to accelerate in 2025. A letter from 30 House Republicans, co-led by Rep. Elise Stefanik, called upon the DoD to assess the potential of nodules to help deliver U
Slide 15: Trump's nominees for UN Ambassador and Secretary of State support nodules
15 Nasdaq: TMC Trump’s nominees for UN Ambassador and Secretary of State are vocal supporters of nodules. UN Ambassador nominee, Rep. Elise Secretary of State nominee, Sen. Marco Stefanik– November 2024 Rubio – November 2024 ᠆ House Republican Conference Chair and a Member of the House Armed ᠆ The S
Slide 16: Key economies announced actions on seafloor resources this year
16 Nasdaq: TMC The world’s three most populous countries and other key industrial economies have announced key actions this year on seafloor resources. India has2024 January submitted and October two ISA2024 applications for seabed mineral exploration, and recently conducted pilot technology trials.
Slide 17: EIS addressing six primary concerns with encouraging preliminary results
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 18: The 'dark oxygen' bubble is beginning to burst
18 Nasdaq: TMC Despite heavy media coverage, the ‘dark oxygen’ bubble is beginning to burst, “There is a high probability that the paper is wrong” – Kentaro Nakamura, University of Tokyo geochemist quoted in Science, with multiple rebuttals now calling for September 18, 2024 the paper to be retracte
Slide 19: ISA working toward adopting the Mining Code in 2025
19 Nasdaq: TMC After over a decade of negotiations and multiple drafts, the ISA has published a consolidated regulatory text and reiterated in their last four meetings that they are working with a view to adopting the Mining Code in 2025. Fiji requests the ISA to prepare workplan for adopting the Mi
Slide 20: Current review process for NORI-D application and timeline
20 Nasdaq: TMC Current review process for NORI-D application and timeline based on Feb. 2024 consolidated draft text. Summary of Exploitation Contract Application Submission and Review Process NORI has the right to submit application based on Exploitation NORI SG checks for LTC reviews LTC rec. / Re
Slide 21: Mining Code timeline driven by ISA Council
21 Nasdaq: TMC Timeline for development of Mining Code is driven by ISA Council, with support from other primary organs. Council (Norway as President) Assembly The publication of the consolidated regulatory text in February 2024 marked the transition to the final phase of ᠆ Supreme / political organ
Slide 22: Income statement highlights: three months ended September 30, 2024
22 Nasdaq: TMC Income statement highlights: three months ended September 30, 2024. ($mm) Q3 2024 Q3 2023 Change Exploration and evaluation expenses 11.8 7.9 3.9 General and administrative expenses 8.2 4.6 3.6 Operating loss 20.0 12.5 7.5 Equity-accounted investment loss 0.1 0.1 - Change in fair valu
Slide 23: Cash flow highlights: three months ended September 30, 2024
23 Nasdaq: TMC Cash flow highlights: three months ended September 30, 2024. ($mm) Q3 2024 Q3 2023 Change Cash used in operating activities 5.7 12.5 (6.8) Capital expenditures 0.1 0.1 (0.1) Acquisition of equipment 0.1 0.1 (0.1) Free cash outflow 5.8 12.6 (6.8)
Slide 24: Balance sheet highlights: quarter ended September 30, 2024
24 Nasdaq: TMC Balance sheet highlights: quarter ended September 30, 2024. Sep 30, 2024 Dec 31, 2023 Change Total Assets ($mm) 61.3 68.9 (7.6) Cash 0.4 6.8 (6.4) Accounts receivable and prepaid expenses 2.5 2.0 0.5 Exploration contracts 43.2 43.2 - Right of use asset 4.3 5.7 (1.4) Equipment 0.8 1.1
Slide 25: Appendix
APPENDIX
Slide 26: Appendix: non-GAAP reconciliation
26 Nasdaq: TMC Appendix: 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 Princ
Slide 27: Why nodules?
27 Why nodules? Polymetallic Far offshore Very deep High grades of four critical Far away from people, The deeper you go, metals: nickel, copper, cobalt no physical impact on the less life you will find. and manganese. communities. Unattached Portable No tailings, near No overburden to remove, no On
Slide 28: Ranked #1 and #2 largest undeveloped nickel projects
28 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 29: Nodule composition is well suited for battery metal needs
29 Nasdaq: TMC Nodule composition is well suited for 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 polyme
Slide 30: Nodule composition suited for infrastructure, defense and energy transition
30 Nasdaq: TMC Nodule composition is also well- suited for infrastructure, defense and the energy transition in general.
Slide 31: Technical resource statements issued on NORI + 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: Nickel from NORI-D could have dramatically lower lifecycle impacts
32 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 33: Video: NORI & Allseas First Integrated Collection System Trials
Click for Video: NORI & Allseas - First Integrated Collection System Trials Since 1970s https://vimeo.com/778303976/28d019f234
Slide 34: 3,000 wet tonnes of nodules in the hold of the Hidden Gem
3,000 wet tonnes of polymetallic nodules in the hold of the Hidden Gem vessel during the pilot collection system test in Q4 2022.
Slide 35: Thank you
Investor Contact investors@metals.co Media Contact Thank you. media@metals.co Follow us
TMC the metals company — Q3 2024 Earnings Presentation on 6ix