Tmc The Metals Company Inc. · NASDAQ:TMC
Tmc The Metals — Q2 2024 Earnings Presentation
31 slides from Tmc The Metals's earnings presentation, Aug 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 August 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: TMC liquidity of ~$40 million at June 30, 2024
3 Nasdaq: TMC TMC liquidity (cash plus unsecured borrowing capacity) of ~$40 million at June 30, 2024, prior to $7.5 million increase in unsecured credit facility capacity. USD Millions - Our credit facilities are being used as intended, as 225.0 a bridge to what we believe will be attractive financ
Slide 4: Summary since last quarterly update
4 Nasdaq: TMC Summary since last quarterly Business developments: - U.S. House Allocates Defense Department Funding to Assess the Feasibility of Domestic update: increased credit facility Nodule Refining Capacity - On May 23, 2024, we welcomed the allocation of $2 million under the House version of
Slide 5: Agenda
5 Nasdaq: TMC Agenda. Our value proposition 6 Recent industry headlines 10 NORI project progress 12 Regulatory update 17 Financial highlights 21 Appendix 25
Slide 6: Why nodules?
6 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 Onc
Slide 7: Ranked #1 and #2 largest undeveloped nickel projects
7 Nasdaq: TMC TMC: ranked in 2022 and 2023 as #1 and #2 largest undeveloped nickel projects on the planet 1; 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 8: Nodule composition is well suited for battery metal needs
8 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 ELECTRIC CAR 53 kg 18% COPPER 75kWh battery with NMC811 chemistry 1 Contained metal value of polymet
Slide 9: Nodule composition suited for infrastructure, defense and energy transition
9 Nasdaq: TMC Nodule composition is also well- suited for infrastructure, defense and the energy transition in general.
Slide 10: Key actions this year on seafloor resources by major economies
10 Nasdaq: TMC The world’s three most populous countries and other key industrial economies have announced key actions this year on seafloor resources. US House April 2024allocated $2M in defense funding to assess the feasibility of domestic nodule refining capacity Two Chinese contractors recently
Slide 11: Tesla and GM shareholders and boards reject activist push
11 Nasdaq: TMC Tesla and GM shareholders and boards reject activist push to exclude seafloor resources from future supply chains: only 8% of Tesla shareholders supported and 12% of GM. Proxy filing on April 17, AGM on June 13 Proxy filing on April 24, AGM on June 6 “The Board recommends a vote AGAIN
Slide 12: Nodules turned into nickel sulfate and cobalt sulfate
12 Nasdaq: TMC We have demonstrated we can turn nodules into nickel sulfate and cobalt sulfate, indicative of battery grade material. - NORI, in collaboration with SGS, has Nickel sulfate crystals from nodules Cobalt sulfate crystals from nodules produced what is believed to be the first nickel sulf
Slide 13: Significant milestones achieved, over $500 million raised
13 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 14: 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 15: EIS progress: new submission to ISA in May 2024
EIS progress: new submission to ISA in May 2024 grows the NORI baseline dataset. Submission based on 8 environmental campaigns Moorings 2,022 sediment samples 312 days at sea 2,010 sea water samples 889 sediment porewater samples 261 deployments Mocness MOC1 depths range: 0 – 1500m 89 Multicores 1,6
Slide 16: Concerns on validity of 'dark oxygen' paper
16 Nasdaq: TMC Despite heavy media coverage, serious concerns on the validity of the recent ‘dark oxygen’ paper are being raised from within the scientific community. Activists and media have amplified the story to back the narrative that there are too many unknowns about nodule collection. Due to S
Slide 17: Regulated by the International Seabed Authority
17 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 18: ISA consolidated regulatory text and Mining Code adoption targeted 2025
18 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 19: Timeline for development of Mining Code
19 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 20: Draft review process for NORI-D application
20 Nasdaq: TMC Draft review process for NORI-D application assuming submission prior to ISA’s March 2025 session. Summary of Exploitation Contract Application Submission and Review Process NORI right to submit application based on Exploitation Regulations, NORI SG checks for LTC reviews LTC rec. / w
Slide 21: NORI-D project estimated at $6.8 billion NPV
21 Nasdaq: TMC Based on NORI Report, NORI- NORI-D Financial Model2 D project estimated at $6.8 $ billions unless otherwise noted billion NPV (est. $8.5 billion Estimated March 21 Initial Current prices, Increase/ using current metal prices). Prices Assess. w/CRU price forecast all other inputs uncha
Slide 22: Income statement highlights: three months ended June 30, 2024
22 Income statement highlights: three months ended June 30, 2024. ($mm) Q2 2024 Q2 2023 Change Exploration and evaluation expenses 12.4 8.1 4.3 General and administrative expenses 7.9 5.1 2.8 Operating loss 20.3 13.2 7.1 Equity-accounted investment loss 0.1 0.1 - Change in fair value of warrants lia
Slide 23: Cash flow highlights: three months ended June 30, 2024
23 Cash flow highlights: three months ended June 30, 2024. ($mm) Q2 2024 Q2 2023 Change Cash used in operating activities 12.1 8.4 3.7 Capital expenditures 0.1 0.1 - Acquisition of equipment 0.1 0.1 - Free cash outflow 12.2 8.5 3.7
Slide 24: Balance sheet highlights: quarter ended June 30, 2024
24 Balance sheet highlights: quarter ended June 30, 2024. Jun 30, 2024 Dec 31, 2023 Change Total Assets ($mm) 60.7 68.9 (8.2) Cash 0.5 6.8 (6.3) Accounts receivable and prepaid expenses 1.2 2.0 (0.8) Exploration contracts 43.2 43.2 - Right of use asset 4.8 5.7 (0.9) Equipment 0.9 1.1 (0.2) Software
Slide 25: Appendix
2 £ = APPENDIX &
Slide 26: Non-GAAP reconciliation
26 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.S. GAAP”), a
Slide 27: Technical resource statements on NORI and TOML
27 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 28: NORI-D nickel could have substantially lower lifecycle impacts
28 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 29: 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 30: 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 31: Thank you
Investor Contact investors@metals.co Media Contact Thank you. media@metals.co Follow us
TMC the metals company — Q2 2024 Earnings Presentation on 6ix