Tmc The Metals Company Inc. · NASDAQ:TMC
Tmc The Metals — Q4 2023 Earnings Presentation
36 slides from Tmc The Metals's earnings presentation, Mar 25, 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 March 25, 2024
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: Project milestones achieved since 2019 CBS 60 Minutes story
3 Last night, CBS 60 Minutes revisited their initial 2019 story on seafloor nodules. What project milestones has TMC achieved since then? THEN: November 2019 NOW: March 2024 Key de-risking milestones achieved Resource statements: COMPLETE ✓ Two SEC S-K 1300 resource statements in 2021 ✓ Initial Asse
Slide 4: Year-end liquidity of ~$61 million pro forma
4 TMC year-end liquidity of ~$61 million, pro forma for new $20M ERAS/Barron unsecured credit facility, ERAS $9M Registered Direct Offering funds received Jan. 2024 and extension of Allseas credit facility. USD Millions 225.0 200.0 175.0 Add'l capacity on new S-3 universal shelf filing 100.0 150.0 1
Slide 5: Summary since last quarterly update
5 Summary since last quarterly update: new unsecured credit facility, updated first production timeline, final offshore campaign completed before NORI-D application. Business developments: - Update to NORI-D Expected Timeline to First Production: We now expect to commence Q4 results production offsh
Slide 6: Agenda
6 Agenda. Our value proposition 7 Recent industry headlines 10 NORI-D project update 13 Environmental case 15 Regulatory update 25 Financial highlights 29 Appendix 33
Slide 7: 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 8: Nodule composition is well suited for battery metal needs
8 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 ELECTRIC CAR NODULE 53 kg 18% COPPER 75kWh battery with NMC811 chemistry 1 Contained metal value of polymetallic nodule
Slide 9: Ranked #1 and #2 largest undeveloped nickel projects
9 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 & measured), in
Slide 10: Recent media coverage notes impacts are relatively low
10 Recent media coverage notes impacts are relatively low, and that commercial operations are inevitable. Contractors like The Metals Company ‘It’s time to mine the seabed’: “Clearly now, we are reaching — the only firm to test a full deep-sea Getting nickel from the deep a very high level of intere
Slide 11: Increasing U.S. interest in marine minerals
11 Recent headlines point to increasing U.S. interest in and prioritization of marine minerals to support national and energy security. 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
Slide 12: National Defense Authorization Act: Pentagon report on nodule processing
12 National Defense Authorization Act signed by President Biden: Pentagon must deliver a report to Congress regarding domestic processing and refining of nodules. ‒ To counter China’s growing hold on the global supply chain, it is essential that the United States secures its own innovative supply of
Slide 13: NORI-D binding MoU with PAMCO
13 NORI-D Project: binding MoU with PAMCO to explore processing at existing RKEF facility in Japan, in line with our capital-light strategy. A Binding Memorandum of Understanding (MoU) with the Pacific Metals Company (PAMCO) of Japan was signed in November 2023 - PAMCO intends to process 1.3 million
Slide 14: NORI-D: nodules turned into nickel sulfate
14 NORI-D Project: we have also now 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, w
Slide 15: NORI-D nickel could have dramatically lower lifecycle impacts
15 NORI-D nickel 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 Laterite Sulfide Sulfide Lat
Slide 16: NORI-D Pre-Feasibility Study elements coming together
16 NORI-D Project: Pre-Feasibility Study (PFS) elements are coming together in advance of application for an exploitation contract. COMPLETED UPCOMING PFS offshore progress PFS onshore progress PFS est. completion: mid-24 Exploitation Application* – Certificate of Sponsorship – Allseas: test mining
Slide 17: Environmental Impact Statement informed by 22 offshore campaigns
17 NORI-D Project: Environmental Impact Statement (EIS) informed by data collected from 22 offshore campaigns over 12 years and over $150 million cumulative spending.
Slide 18: EIS: assessing data collected around collection test
18 EIS: we are assessing data collected from before, during and after our collection system test. Environmental Impact Assessment Process Post Collection Test Data Assessment EIS Development Data Assimilation EIS Submission Collection Test Survey 12 years of offshore campaigns
Slide 19: Pilot collection system test and monitoring campaign completed
19 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 LA
Slide 20: One of the largest deep-sea datasets ever compiled
20 One of the largest ever 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 campaign to be 35-40 days, this represents over 4000
Slide 21: Twelve month post collection test campaign complete
Twelve month post collection test environmental campaign on NORI-D now complete. Video available here: https://vimeo.com/903774715?share=copy
Slide 22: Organisms present and alive one year after collection test
22 Qualitative data shows individual organisms are present and alive one year following collection test, even right next to the vehicle tracks.
Slide 23: Plume monitored during pilot collection system test
23 We successfully monitored the plume during our pilot collection system test.
Slide 24: Seafloor plume observed data contradicts prior speculation
Seafloor plume: in-field observed data and modeling are contradicting prior speculation by opposition groups. Good enough for swimming Good enough for drinking if it were freshwater Natural sedimentation level © DHI Video available at: https://vimeo.com/851319010/79c7c9ff18?share=copy
Slide 25: Regulated by the International Seabed Authority
25 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 national juris
Slide 26: Consolidated regulatory text released for Mining Code negotiations
26 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. - This signa
Slide 27: ISA progress toward final regulations; NORI reserves legal rights
27 ISA making progress toward final regulations, while TMC subsidiary NORI reserves legal rights to submit application before final Timeline regulations are in place. 2011 Fiji requests the ISA to prepare workplan for adopting the Mining Code 2012 ISA Secretariat prepares a workplan for adopting the
Slide 28: Expected NORI-D application process
28 Expected NORI-D application process: if LTC recommends approval, two-thirds majority of ISA Council needed to overturn. Exploitation Contract Application Review Process 30 days 7 days 90 days 7 days 30 days 120 days 60 days 344 days Secretary Legal & Applicable sections SG will provide Contractor
Slide 29: NORI-D estimated at $6.8 billion NPV
29 Based on SEC-compliant Initial NORI-D Financial Model2 Assessment, NORI-D project $ billions unless otherwise noted estimated at $6.8 billion NPV Estimated March ‘21 Initial March ‘24 prices, Increase (est. $8.1 billion using March Prices Assess. w/CRU price forecast all other inputs unchanged 20
Slide 30: Income statement highlights: three months ended Dec 31, 2023
30 Income statement highlights: three months ended Dec 31, 2023. ($mm) Q4 2022 Q4 2023 Change Exploration and evaluation expenses 104.3 26.7 (77.6) General and administrative expenses 7.0 6.5 (0.5) Operating loss 111.3 33.2 (78.1) Equity-accounted investment loss - 0.1 N/A Change in fair value of wa
Slide 31: Cash flow highlights: three months ended Dec 31, 2023
31 Cash flow highlights: three months ended Dec 31, 2023. ($mm) Q4 2022 Q4 2023 Change Cash used in operating activities 19.8 15.2 (4.6) Capital expenditures 0.2 0.4 0.2 Acquisition of equipment 0.2 0.4 0.2 Free cash outflow 20.0 15.6 (4.4)
Slide 32: Balance sheet highlights: year ended Dec 31, 2023
32 Balance sheet highlights: year ended Dec 31, 2023. Dec 31, 2022 Dec 31, 2023 Change Total Assets ($mm) 94.8 68.9 (25.9) Cash 46.8 6.8 (40.0) Accounts receivable and prepaid expenses 2.8 2.0 (0.8) Exploration and evaluation assets 43.2 43.2 - Right of use Asset - 5.7 5.7 Property and equipment 2.0
Slide 33: Appendix
APPENDIX
Slide 34: Why explore the seafloor? Most of the planet's nickel, cobalt and manganese
34 Why explore the seafloor? That’s where most of the planet’s nickel, cobalt & manganese is. Nickel Cobalt Manganese Million metric tons Million metric tons Million metric tons 94 306 7,706 95 Indonesia - 21 Australia - 20 1,504 Russia - 7 Brazil - 16 DRC 3.6 Australia 230 RSA 520 Cuba - 6 Australi
Slide 35: Technical resource statements issued on NORI and TOML
35 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 36: TMC estimated resource could supply U.S. demand for nickel, cobalt and manganese
36 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
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