Tmc The Metals Company Inc. · NASDAQ:TMC
Tmc The Metals — Investor Presentation (December 2023)
48 slides from Tmc The Metals's investor presentation, December 2023
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 December 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: Here is what a polymetallic nodule field looks like
3 Here is what a polymetallic nodule field looks like.
Slide 4: Deep-sea mining usually covers three types of resources
4 “Deep-sea mining” usually covers three types of resources. Polymetallic nodules Cobalt crusts Seafloor massive sulfides 27 28 25 78 29 79 47 30 25 28 29 27 Mn Ni Cu Co Co Ni Nickel Mn Manganese Pt Platinum Cu Copper AuGold AgSilver Zn Zinc Cobalt Manganese Nickel Copper Cobalt 58.693 54.938 195.08
Slide 5: 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 toxic elements No overburden to remove, no Once nodules are tra
Slide 6: Why explore the seafloor?
6 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 Australia
Slide 7: TMC estimated resource could supply U.S. demand for nickel, cobalt and manganese
7 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 requ
Slide 8: Ranked #1 and #2 largest undeveloped nickel projects
8 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 9: TMC is an outlier among nickel projects
9 Some nickel projects have high grade, some have a large resource, but TMC is an outlier Nickel Equivalent Grade (%) vs. Resource (Billion Pounds) - among peers with the Bubble Size Reflects Relative Enterprise Value1 largest NiEq resource Avg: and highest NiEq grade2 3.50% 15.7Blbs TMC - NORI alon
Slide 10: Recent global headlines reflect increased investment in seafloor resources
10 Recent global headlines reflect increased investment and interest in seafloor resources… Transocean / GSR Norway Japan France - In February 2023, Transocean - In June 2023, the Norwegian - In December 2022, Japan - In February 2023, French Research agreed to contribute the stacked government prop
Slide 11: Prioritization of seafloor resources by Chinese leadership
11 …and prioritization of seafloor resources by Chinese leadership. China - On February 28, 2023, China Ocean Mineral Resources Research and Development Association (COMRA) signed a second contract extension for exploration for polymetallic nodules1 - On March 14, 2023, Mining.com released an articl
Slide 12: Commercial nodule collection is a question of when, not if
12 Recent reporting suggests commercial nodule collection is now a question of ‘when,’ not ‘if,’ with strong support from The Economist and deep-sea explorer & director James Cameron. Eric Lipton tweet: “Doesn’t appear to Deep sea mining for minerals be enough votes to indefinitely block is ‘better
Slide 13: US lawmakers urging a domestic plan on nodule processing
13 US 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 US Senators push for UNCLOS Authorization Act FY24: Critical Department to support nodule ratification a
Slide 14: Nodule collection technology demonstrated in the 1970s
14 Nodule collection technology demonstrated in the 1970s. 1970’s pilot testing in CCZ Present Day Offshore Diamond Mining De Beers, NAMCO, Samicor Kennecott Copper Corp Ocean Management Inc. British Petroleum, Rio Tinto-Zinc Corp International Nickel Company Consolidated Gold Fields Metallgesellsch
Slide 15: Technical resource statements issued on NORI and TOML
15 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 16: Resource definition: 2D resource allows effective definition
16 Resource definition: 2D resource allows BOX CORE SAMPLING 1 effective definition through sampling and imagery. ~250 box cores collected2 ~82,000 kg (wet) nodules collected2 ~13,950 biological samples collected2 AUV CAMERA IMAGERY1 178,591 km2 of high-res bathymetric survey2 5,439 km2 detailed sea
Slide 17: GSR pilot collector test
17 GSR pilot collector test. Source: First test of a manganese nodule collector in around four kilometers of water: research consortium successfully completes monitoring of environmental impacts in Video available at: https://vimeo.com/653068330/7f4d928878 the Pacific, BGR press release, May 12, 202
Slide 18: Seafloor after a pilot collector test
18 And here is what the seafloor looks like after a pilot collector test. Source: First test of a manganese nodule collector in around four kilometers of water: research consortium successfully completes monitoring of environmental impacts in the Pacific, BGR press release, May 12, 2021
Slide 19: Pilot collection system test and environmental monitoring completed Dec 2022
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: TMC pilot collection system test
TMC pilot collection system test. Video available at: https://vimeo.com/778303976?share=copy
Slide 21: ~3,000 tonnes of nodules inside the hold of Hidden Gem
~3,000 tonnes of nodules inside the hold of Hidden Gem. Source: https://www.globenewswire.com/en/news-release/2022/11/14/2555061/0/en/NORI-and-Allseas-Lift-Over-3-000-Tonnes-of-Polymetallic- Nodules-to-Surface-from-Planet-s-Largest-Deposit-of-Battery-Metals-as-Leading-Scientists-and-Marine-Experts-C
Slide 22: Onshore, we have demonstrated we can turn nodules into alloy and matte
22 Onshore, we have demonstrated Better BetterBetter Metals Metals for Metals s for E for 26 E sE s 26 26 we can turn nodules into nshore nshore nshore de dedeelopment elopment elopment manganese silicate and NiCuCo ilotilot ilot lant lant rogress rogress lant rogress alloy & matte… WeWeWe will will
Slide 23: Binding MoU with PAMCO to explore processing in Japan
23 …and signed a binding MoU with PAMCO to explore processing at existing RKEF facility in Japan, in line with TMC capital-light strategy. Hachinohe facility Signed non-binding MoU with Pacific Metals Company (PAMCO) of Japan in November 2022 to evaluate the processing of 1.3 million tonnes per year
Slide 24: NORI-D Pre-Feasibility Study elements coming together
24 NORI-D Project: Pre-Feasibility ‒ Significant progress has been made on PFS work, with finalization expected in 1H Study (PFS) elements are coming 2024 in advance of application for an exploitation contract for the NORI-D area together in advance of application following the July 2024 meeting of
Slide 25: Oceans host much less life than land
25 Oceans—despite covering a much larger area than land—host much less life. 3% 97% of biomass lives in of biomass lives the ocean on land Note: Ocean life is defined as marine life and deep-subsurface life but excluding 1.5GtC of life inside oceanic crusts as that life will not be impacted by nodul
Slide 26: The deeper you go, the less life you find
26 And the deeper you go, the less life you find. 28% of ocean life 65% of ocean life Abyssal plain is a vast sedimentary seabed, oxic to 2m. It has gentle depressions, troughs and ridges. There is 7% of ocean life intense pressure (5,700-8,500 psi) and no sound or light except the ones made by anim
Slide 27: NORI-D Environmental Impact Statement
27 NORI-D Project: Environmental Impact Statement (EIS) informed by data collected from 20 offshore campaigns over 11 years and ~$150 million cumulative spending.
Slide 28: Biological and physical impacts
28 Biological and physical impacts: TMC has engaged many leading research institutions and companies, with over 200 terabytes of data collected in 2022 alone.
Slide 29: NORI-D in final stages of Environmental and Social Impact Assessment
29 NORI-D Project: in final stages of Environmental Covered by lifecycle assessment (LCA) & other and Social Impact Assessment (ESIA). published research – COMPLETED Covered by NORI-D ESIA – ONGOING ENDPOINT AREA OF PROTECTION IMPACT PATHWAY IMPACT CATEGORY Impact to freshwater species Global warmin
Slide 30: Nodules are found in an ecosystem with least life
Nodules are found in an ecosystem with least life... Living biomass density by biome Mean kg of contained carbon / m? 50 45 17.5 gigatons total (3%) 533 gigatons total (97%) Nodules Ss «és ‘Source: Terrestrial biomass estimates from Houghton, R.A., and S. J. Gostz (2008), New satellites help quantif
Slide 31: And low levels of biodiversity
And low levels of biodiversity. Species richness by biome Estimated number of species, excluding microbial life Already described —_ Total estimated 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 ~250,000 species described ~2.2 million species estimated Nodules ~1.7 million spec
Slide 32: NORI added over 75,000 biological occurrence records to public databases
32 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 an initial batch of
Slide 33: Best mitigation is conservation: 43% of the CCZ set aside
33 Best mitigation is conservation: 43% of the CCZ already set aside. 1.97m km2 under protection 1.28m km2 under exploration APEI-3 APEI-6 APEI-2 The High Seas APEI-10 APEI-12 APEI-13 Treaty agreed in APEI-1 June 2023 aims to APEI-9 APEI-11 PROTECTED AREAS protect 30% of the APEI-5 Areas of Particul
Slide 34: Benchmark: Indonesia species richness and nickel production
34 Benchmark: Indonesia has the highest species richness as well as the highest nickel production. Nickel mining in Indonesia
Slide 35: Nickel from NORI-D could have dramatically lower lifecycle impacts
35 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 36: Substantially lower CO2e emissions
36 …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
Slide 37: Trawling impacts 175x more seafloor than potential nodule collection
37 Trawling today impacts 175x more Future seafloor use seafloor every year than potential Offshore wind 2050: seafloor use2 Current seafloor use nodule collection tomorrow. Global seafloor Trawling: annual seafloor use1 0.42 m km2 = 6 squares Nodule collection: annual seafloor use3 361m km2 = 4,800
Slide 38: Sediment plumes: activists' concerns vs. published research
38 Sediment plumes acti ists’ concerns vs. published research. CONCERNS RESEARCH Deep-Sea Mining Statement Research published and field studies Midwater plume Signed by 769 people as of August 3, 2023 conducted in 2021-22 <10% of entrained Organized by Deep-Sea Conservation Coalition sediment from t
Slide 39: Seafloor plume: in-field observations suggest lower impact
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 40: Seafloor plume: observed data contradict previously assumed speculation
40 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 41: Transparency through cloud-based AI and digital twin
41 Transparency through cloud-based AI and digital twin: giving the regulator and key stakeholders eyes and ears into operations. With our digital twin, a mix of sensors and cloud-based AI, we will optimize the environmental performance of operations by applying environmental constraints and limits
Slide 42: Regulated by the International Seabed Authority
42 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 43: ISA making progress toward final regulations
43 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 44: 24 Member States publicly expressed reservations
44 24 Member States Assembly out of 169 Members AFRICAN GROUP (47) Algeria ASIA-PACIFIC (45) Bahrain GRULAC (29) Antigua and Barbuda WESTERN EUROPEAN (23) Australia EASTERN EUROPEAN (23) Albania publicly expressed Angola Benin Botswana Bangladesh Brunei China Argentina Bahamas Barbados Austria Belgi
Slide 45: NORI-D project estimated at $6.8 billion NPV
45 Based on SEC-compliant NORI-D Financial Model2 Initial Assessment, NORI-D $ billions unless otherwise noted project estimated at $6.8 Estimated March 21 Initial Current prices, Increase billion NPV (est. $8.6 billion Prices Assess. w/CRU price forecast all other inputs unchanged using current met
Slide 46: Key de-risking milestones ahead to unlock NORI-D project value
46 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 Project Zero - P.Zero c
Slide 47: At steady state, could become second lowest-cost nickel producer
47 At steady state production, we could become the second lowest-cost nickel producer in the world. Nickel C1 cost curve on a by-products’ basis1 C1 Cash Cost represents all direct costs, including mining, processing, freight, SG&A minus revenue from by-products 10.0 5.0 C1 cash cost, $ / lb 0.0 Wo
Slide 48: NORI-D project: expected production volumes
48 NORI-D project: expected production volumes. Nickel, kt Copper, kt 150 120 130 100 110 80 100% 90 1,634Mt (wet) 60 70 50 ~125 ktpa ~93 ktpa 40 30 20 10 TOML + 0 Rest of -10 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2024 2025
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