Tmc The Metals Company Inc. · NASDAQ:TMC
Tmc The Metals — Q3 2023 Earnings Presentation
39 slides from Tmc The Metals's earnings presentation, Nov 9, 2023
Slide 1: Q3 2023 Corporate Update: Unlocking the World's Largest Estimated Undeveloped Source of Battery Metals
The Metals Company Q3 2023 Corporate Update: Unlocking the World’s Largest Estimated Undeveloped Source of Battery Metals November 9, 2023
Slide 2: Forward looking statements
2 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.’s (“TMC” or
Slide 3: Summary since last quarterly update
3 HIGHLIGHTS Summary since last quarterly update: financing news, progress on Business developments: Environmental Impact Statement - NORI Researchers to Revisit Site of Last Year’s Nodule Collection System Test: In November 2023, TMC and its subsidiary Nauru Ocean Resources Inc. (NORI) provided fur
Slide 4: Capital raise closing update: ~$25 million common stock and Class A warrants
4 HIGHLIGHTS Capital raise closing update: ~$25 million common stock at $2.00 and Class A warrants, majority received with affiliate investor closings upcoming. Issuer TMC the metals company Inc. Transaction Registered direct offering on existing effective Form S-3 Transaction Size ~$25 million gros
Slide 5: Agenda
5 Agenda. Our value proposition 6 NORI-D project update 9 Impact Report and Sustainability Approach 12 Environmental case 15 Regulatory update 20 Financial highlights 24 Appendix 31
Slide 6: Some nickel projects have high grade, some large resource, but TMC is an outlier
6 OUR VALUE PROPOSITION Some nickel projects have high grade, some have a large resource, but TMC is an outlier Nickel Equivalent Grade (%) vs. Resource (Billion Pounds) - Bubble Size Reflects Relative Enterprise Value1 among peers with the largest NiEq resource 3.50% Avg: 15.7Blbs TMC - NORI alone
Slide 7: Ranked as #1 and #2 largest undeveloped nickel projects
7 OUR VALUE PROPOSITION TMC: ranked in 2022 and 2023 as #1 and #2 largest undeveloped nickel projects on the planet,1 and an 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,
Slide 8: US congressional spotlight on nodule processing
8 OUR VALUE PROPOSITION US congressional spotlight: House and Senate members repeatedly urging Biden administration and Pentagon to deliver a domestic plan on the processing of nodules. US House National Defense US House members urge Defense Authorization Act FY24: Critical Department to support nod
Slide 9: NORI-D Project: Pre-Feasibility Study elements coming together
9 NORI-D PROJECT UPDATE NORI-D Project: Pre-Feasibility ‒ Significant progress has been made on PFS work, with finalization expected in 1H 2024 in advance of application for an exploitation contract for the NORI-D area Study (PFS) elements are coming following the July 2024 meeting of the Internatio
Slide 10: NORI-D Environmental Impact Statement informed by 20 offshore campaigns
10 NORI-D PROJECT UPDATE NORI-D Project: Environmental Impact Statement (EIS) informed by data collected from 20 offshore campaigns over 11 years and ~$150 million cumulative spending.
Slide 11: NORI-D in final stages of Environmental and Social Impact Assessment
11 NORI-D PROJECT UPDATE NORI-D Project: in final stages of Environmental Covered by lifecycle assessment (LCA) & other published research – COMPLETED Covered by NORI-D ESIA – ONGOING and Social Impact Assessment (ESIA). ENDPOINT AREA OF PROTECTION IMPACT PATHWAY IMPACT CATEGORY Impact to freshwater
Slide 12: Our second annual Impact Report released
12 IMPACT REPORT AND SUSTAINABILITY APPROACH Our second annual Impact Report released. 2022 Sustainability Highlights: metals.metrio.net
Slide 13: Our second annual Impact Report released
13 IMPACT REPORT AND SUSTAINABILITY APPROACH Our second annual Impact Report released. 2022 Sustainability Highlights: metals.metrio.net
Slide 14: Introducing our Sustainability Approach
14 IMPACT REPORT AND SUSTAINABILITY APPROACH Introducing our Sustainability Approach. Feedback welcomed: impact@metals.co Vision: We envision a carefully managed metal commons that will be used, recovered, and reused again and again – for millennia.
Slide 15: Nodules are found in an ecosystem with least life
ENVIRONMENTAL CASE Nodules are found in an ecosystem Living biomass density by biome with least life... Mean kg of contained carbon / m2 4G 17.5 gigatons total (3%) 533 gigatons total (97%) Nodules s «sé ‘Source: Terrestrial biomass estimates from Houghton, R.A., and S. J. Gostz (2008), New satellit
Slide 16: And low levels of biodiversity
ENVIRONMENTAL CASE And low levels of Species richness by biome Estimated number of species, excluding microbial life biodiversity. Already described Total estimated sennone OCEANIC BIOMES TERRESTRIAL BIOMES ~250,000 species described ~1.7 million species described 3,000,000 ~2.2 million species esti
Slide 17: Biodiversity: NORI added over 75,000 biological occurrence records
17 ENVIRONMENTAL CASE Biodiversity: NORI added over 75,000 biological occurrence records to public databases. UNESCO’s OBIS database is the world’s largest depository of marine biodiversity data. The OBIS ISA node contains: - 99 data sets - 131,994 occurrences - Collected since 2004 NORI submitted a
Slide 18: Seafloor plume: in-field observations suggest lower impact than speculation
Seafloor plume: in-field observations suggest lower impact than speculation. In-field observed data indicate that: - The sediment plume is low lying - 92-98% of the sediment initially stays less than 2 meters above the seafloor - The sediment plume initially forms a turbidity current - A turbidity c
Slide 19: Seafloor plume: observed data contradict previously assumed speculation
19 Seafloor plume: in-field observed Following NORI’s presentation at an ISA side event in November 2023, the Deep Sea Conservation Coalition (DSCC) changed their website wording on plumes to data and modeling are contradicting reduce their suggested scale of potential impact by ~100x - Previous DSC
Slide 20: Regulated by the International Seabed Authority established in 1994 by UNCLOS
20 REGULATORY UPDATE Regulated by the International Seabed Authority established in 1994 by UNCLOS. UNCLOS Parties UNCLOS Signatories - 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 beyon
Slide 21: 23 Member States out of 169 have expressed reservations
21 REGULATORY UPDATE Assembly 23 Member States out AFRICAN GROUP (47) ASIA-PACIFIC (45) GRULAC (29) WESTERN EUROPEAN (23) EASTERN EUROPEAN (23) of 169 Members have Algeria Angola Benin Bahrain Bangladesh Brunei Antigua and Barbuda Argentina Bahamas Australia Austria Belgium Albania Armenia Azerbaija
Slide 22: ISA making progress toward final regulations
22 REGULATORY UPDATE ISA making progress toward final regulations, while TMC subsidiary NORI reserves legal rights to submit application before final Timeline 2011 Fiji requests the ISA to prepare workplan for adopting the Mining Code regulations are in place. 2012 ISA Secretariat prepares a workpla
Slide 23: Expected path to secure an exploitation contract for NORI-D
23 REGULATORY UPDATE Expected path to secure an exploitation contract for the NORI-D area, based on draft regulations. Application requirements Process – Certificate of Sponsorship – Mining Plan – Financing Plan 45 days 120 days 60 days 90 days 315 days – Environmental Impact Statement Secretary Gen
Slide 24: NORI-D project estimated at $6.8 billion NPV
24 FINANCIAL HIGHLIGHTS NORI-D Financial Model2 Based on SEC-compliant $ billions unless otherwise noted Initial Assessment, NORI-D Estimated March 21 Initial Current prices, Increase project estimated at $6.8 Prices Assess. w/CRU all other inputs price forecast unchanged billion NPV (est. $8.6 bill
Slide 25: Key de-risking milestones ahead to unlock NORI-D project value
25 FINANCIAL HIGHLIGHTS Key de-risking milestones ahead to unlock NORI-D project value. Following July Potential timing H2 2022 / 2023 2024 ISA Meeting Est. 2025 Est. 2025 Est. Q4 2025 De-risking milestones - Pilot Collection System Test NORI submits NORI-D ISA adopts final ISA grants NORI NORI-D Pr
Slide 26: Income statement highlights: three months ended September 30, 2023
26 FINANCIAL HIGHLIGHTS Income statement highlights: three months ended September 30, 2023. ($mm) Q3 2022 Q3 2023 Change Exploration and evaluation expenses 22.7 7.9 (14.8) General and administrative expenses 5.9 4.6 (1.3) Operating loss 28.6 12.5 (16.1) Equity-accounted investment loss - 0.1 0.1 Ch
Slide 27: Cash flow highlights: three months ended September 30, 2023
27 FINANCIAL HIGHLIGHTS Cash flow highlights: three months ended September 30, 2023. ($mm) Q3 2022 Q3 2023 Change Cash used in operating activities 8.6 12.5 3.9 Capital expenditures 0.5 0.1 (0.4) Acquisition of equipment 0.5 0.1 (0.4) Free cash outflow 9.1 12.6 3.5
Slide 28: Balance sheet highlights: as at September 30, 2023
28 FINANCIAL HIGHLIGHTS Balance sheet highlights: as at September 30, 2023. Dec 31, 2022 Sept 30, 2023 Change Total Assets ($mm) 94.8 87.6 (7.2) Cash 46.8 22.5 (24.3) Accounts receivable and prepaid expenses 2.8 5.3 2.5 Exploration and evaluation assets 43.2 43.0 (0.2) Right of use Asset - 6.2 6.2 P
Slide 29: Income statement highlights: nine months ended September 30, 2023
29 FINANCIAL HIGHLIGHTS Income statement highlights: nine months ended September 30, 2023. ($mm) YTD 2022 YTD 2023 Change Exploration and evaluation expenses 40.3 23.2 (17.1) General and administrative expenses 22.5 16.0 (6.5) Operating loss 62.8 39.2 (23.6) Equity-accounted investment loss - 0.5 0.
Slide 30: Cash flow highlights: nine months ended September 30, 2023
30 FINANCIAL HIGHLIGHTS Cash flow highlights: nine months ended September 30, 2023. ($mm) YTD 2022 YTD 2023 Change Cash used in operating activities 46.8 44.4 (2.4) Capital expenditures 1.0 0.2 (0.8) Acquisition of equipment 1.0 0.2 (0.8) Free cash outflow 47.8 44.6 (3.2)
Slide 31: Appendix
31 Appendix
Slide 32: Here is what a polymetallic nodule field looks like
32 Here is what a polymetallic nodule field looks like.
Slide 33: TMC estimated resource could supply U.S. demand for nickel, cobalt and manganese
33 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 equivalent to the req
Slide 34: Technical resource statements issued on NORI and TOML
34 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 Tonga Kiribati
Slide 35: Pilot collection system test and environmental monitoring campaign completed Dec. 2022
35 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 program Feb 7 L
Slide 36: NORI & Allseas first integrated collection system trial since 1970s
NORI & Allseas - First Integrated Collection System Trial Since 1970s: https://vimeo.com/778303976/28d019f234
Slide 37: NORI-D Project spans from seafloor to factory gate
37 NORI-D application is focused on offshore nodule collection, but NORI-D Project spans from seafloor to factory gate, with initial processing expected in Japan at existing facilities and proven flowsheet. ISA JURISDICTION NORI-D APPLICATION NORI-D PROJECT Battery & steel manufacturing >> end use -
Slide 38: Nickel from NORI-D could have dramatically lower lifecycle impacts than Indonesia
38 Nickel from NORI-D could have dramatically lower lifecycle impacts Indonesia - laterites NORI-D nodules than Indonesia… Impact of 1 kg nickel in nickel sulfate Impact of 1 kg nickel in nickel sulfate Laterite Indonesia RKEF route Laterite Indonesia HPAL (MHP) Nodules NORI-D RKEF route Carbon - GW
Slide 39: Including substantially lower CO2e emissions
39 …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 Laterite Sulfide Sulfide Laterite Laterite Sulfide Nodules Indonesia Cuba Australia Austr
TMC the metals company — Q3 2023 Earnings Presentation on 6ix