TMC Provides First Quarter 2025 Corporate Update

NEW YORK, May 14, 2025 (GLOBE NEWSWIRE) -- TMC the metals company Inc. (Nasdaq: TMC) (“TMC” or “the Company”), a leading explorer of the world’s largest undeveloped resource of critical metals essential to energy, defense, manufacturing, and infrastructure, today provided a corporate update and first quarter results for the period ending March 31, 2025. Q1 2025 Financial Highlights Total liquidity of approximately $43.8 million at March 31, 2025, including cash of $2.3 million ERAS/Barron facility increased from $38 million to $44 million ($41.5 million available) as previously announced; andAllseas Group SA affiliate facility of $25 million was terminated by mutual agreement in Q1 2025 as maturity was approaching and no amounts were outstanding, while the maturity of the $7.5 million Allseas Working Capital loan was extended from April to September 2025 $9.3 million cash used in operations for the quarter ended March 31, 2025Net loss of $20.6 million and net loss per share of $0.06 for the quarter ended March 31, 2025 Registered Direct Offering Registered Direct Offering resulting in expected gross proceeds of $37 million through the issuance of 12.3 million common shares at $3.00 per shareThe Registered Direct Offering is led by by Michael Hess, Chief Investment Officer of Hess Capital, Brian Paes-Braga, Managing Partner at SAF Group and Head of SAF Growth, and includes the participation of an existing strategic TMC investorEach share is accompanied by a Class C warrant to purchase one additional share at an exercise price of $4.50 per shareWarrants have a three-year term with mandatory exercise if shares trade above $7.00 per share for 20 consecutive days Gerard Barron, Chairman & CEO of The Metals Company, commented: “The first quarter of 2025 marked a turning point, not just for TMC, but for the deep-sea critical minerals industry. President Trump signed a landmark Executive Order, ‘Unleashing America’s Offshore Critical Minerals and Resources’, and TMC USA submitted the world’s first application for commercial recovery permit, two months ahead of schedule, and two exploration license applications under U.S. law. These applications offer the United States a path to mineral independence in nickel, copper, cobalt, and manganese—metals critical for energy, defense, manufacturing and infrastructure. We have invested over a half a billion dollars and more than a decade preparing for this moment.” “While the milestones achieved in the last two months are historic, we are just getting warmed up and are very excited about some key catalysts in the near term. Later this quarter, we expect further detail from the Commerce Department and NOAA on tangible actions to expedite the application review processes and we look forward to providing a more definitive step-by-step permitting timeline to the market soon after.” “I am also pleased to announce that our PFS will be completed next quarter for the commercial recovery area over which we applied, allowing us to reflect new assumptions made possible by our new U.S. permitting strategy. Further, with this path to commercial production now coming into focus, we intend to provide more clarity on the potential valuation across our total estimated resource, well beyond NORI-D which has historically been our valuation anchor.” “With the eyes of the world now firmly on this emerging industry, we’re also proud to welcome new strategic investors like Michael Hess to the business, who along with Brian Paes-Braga anchored our last announced financing. Mr Hess brings over 15 years of offshore exploration and production experience, as both an investor and operator, along with deep relationships across the U.S. At the same time, we will continue to discuss alternative financing sources with the U.S. government and potential strategic partners to prepare for commercial production, as the equity round just announced is more than sufficient to get us past the expected review process on a commercial recovery permit.” Operational Highlights TMC Announces $37 Million Strategic Investment to Advance Deep-Sea Mineral Development On May 12, 2025, we announced a $37 million registered direct offering through a securities purchase agreement led by Michael Hess, Chief Investment Officer of Hess Capital, and Brian Paes-Braga, Managing Partner at SAF Group, Head of SAF Growth and a long-time supporter of TMC. An existing strategic TMC investor also participated in the offering. Pursuant to the agreement, TMC will issue 12.3 million common shares at $3.00 per share, with each share accompanied by a Class C warrant to purchase one additional share at an exercise price of $4.50 per share. The warrants have a three-year term and include a mandatory exercise provision if the stock trades above $7.00 per share for 20 consecutive trading days. TMC USA Submits Application for Commercial Recovery of Deep-Sea Minerals in the High Seas Under U.S. Seabed Mining Code On April 29, 2025, we announced that TMC USA had submitted the first-ever application for a commercial recovery permit and applications for two exploration licenses under the Deep Seabed Hard Mineral Resources Act of 1980 (DSHMRA), ahead of its original June 27, 2025, application target for commercial recovery. The application area for the commercial recovery permit, TMC USA-A_2, covers a total combined area of 25,160 square kilometers in the Clarion Clipperton Zone which includes areas that contain the Company’s already indicated and measured resources. TMC USA also submitted two exploration license applications: TMC USA-A and TMC USA-B with a total combined area of 199,895 square kilometers. The Company believes the TMC USA-A and USA-B exploration areas contain SEC SK 1300-compliant resources of 1.635 billion wet tonnes of polymetallic nodules supported by existing issued technical report summaries, with an additional estimated 500 million tonnes of potential exploration upside. The resources are estimated to contain approximately 15.5 million tonnes of nickel, 12.8 million tonnes of copper, 2.0 million tonnes of cobalt, and 345 million tonnes of manganese. Rutger Bosland, Pioneering Engineer and Technical Lead on Development of TMC’s Nodule Collection System, Joins Company to Drive Commercial Readiness On April 15, 2025, we announced that Rutger Bosland, the engineer and technical lead who oversaw the design, build, and successful test deployment of Allseas’ integrated nodule collection system, had joined the Company as Chief Innovation and Offshore Technology Officer (CIOTO). Rutger will lead offshore innovation and efforts to scale our technologies for commercial production. He brings world-class expertise in deep-sea mining, naval architecture, and offshore operations to TMC, having led a team of 80+ engineers in developing TMC’s nodule collection system, and Allseas’ program to scale-up nodule collection technology in preparation for TMC’s planned commercial operations. TMC and PAMCO Achieve Nodule Processing Milestone, Unlocking Critical Battery & Steelmaking Materials at Existing Facilities On February 18, 2025, we announced that our partner PAMCO had successfully smelted 450 tonnes of calcine into 35 tonnes of NiCuCo alloy and 320 tonnes of Mn silicate products, as part of the program of campaigns to process a 2,000-tonne sample of deep-seafloor polymetallic nodules at PAMCO’s Hachinohe Rotary Kiln Electric-Arc Furnace facility in Hachinohe, Japan, demonstrating the process at scale. The process data and operational experience gathered during the processing trial will inform expected definitive processing agreements between the parties. Industry Update President Trump Executive Order on Deep-Seabed Mining On April 24, 2025, we welcomed an Executive Order signed by President Trump to create a robust domestic supply for critical minerals derived from seabed resources. The Executive Order, ‘Unleashing America’s Offshore Critical Minerals and Resources’, directs the Commerce Secretary to implement an expedited permitting process under DSHMRA, a statute passed by Congress in 1980. In addition to directing the International Development Finance Corporation, Export-Import Bank and Trade and Development Agency to identify tools to support this new industry, the order instructs the Departments of Defense and Energy to assess the use of the National Defense Stockpile for nodule-derived minerals and entering into offtake agreements for the procurement of these minerals. These departments are also directed to review and revise domestic processing capabilities for seabed mineral resources and Defense Production Act authorities. The executive order also issued a directive for a joint assessment, led by the Secretaries of Commerce, State, Interior, and Energy in coordination with U.S. partners and allies, on the feasibility of an international seabed benefit-sharing mechanism. TMC CEO Testifies to House Committee on Natural Resources: Deep-Sea Minerals Key to U.S. Industrial Future On April 29, 2025, TMC CEO Gerard Barron testified before the U.S. House Natural Resources Subcommittee on Oversight and Investigations at a hearing titled, “Exploring the Potential of Deep-Sea Mining to Expand American Mineral Production”. In his remarks, Mr. Barron emphasized that the United States must reclaim its leadership in deep-seabed mineral development to strengthen energy and supply chain security and reinforce national defense and manufacturing. Also participating as an expert witness during the hearing was Dr Thomas Peacock of MIT, one of the world’s leading experts on deep-sea sediment plume dynamics, who asked the Committee to be wary of misinformation. Financial Results Overview At March 31, 2025, we held cash of approximately $2.3 million and short-term debt of $10 million. We believe that our total liquidity including cash and borrowing availability of $41.5 million under our credit facility with ERAS Capital LLC and Mr. Barron, will be sufficient to meet our working capital and capital expenditure commitments for at least the next twelve months from today. The announcement of the strategic investment of $37 million on May 12, 2025 is expected to provide additional liquidity. We reported a net loss of approximately $20.6 million, or $0.06 per share for the quarter ended March 31, 2025, compared to net loss of $25.1 million, or $0.08 per share, for the quarter ended March 31, 2024. Exploration and evaluation expenses during the quarter ended March 31, 2025 were $9.5 million compared to $18.1 million for the quarter ended March 31, 2024. The decrease in the exploration and evaluation expenses in the first quarter of 2025 was due to the decrease in environmental studies costs and mining, technological and process development costs as the comparative period included costs associated with Campaign 8 which was completed in the first quarter of 2024 and nodule transport costs to the PAMCO facility in Japan. This decrease in exploration and evaluation costs was partially offset by an increase in share-based compensation costs reflecting the amortization of the fair value of the RSUs granted to officers in the second quarter of 2024. General and administrative expenses were $8.5 million for the quarter ended March 31, 2025 compared to $6.6 million for the quarter ended March 31, 2024, reflecting higher amortization of share-based compensation, partially offset by lower legal costs. Conference CallWe will hold a conference call today at 4:30 p.m. EDT to provide an update on recent corporate developments and first quarter 2025 financial results. First Quarter 2025 Conference Call Details Date:Wednesday, May 14, 2025 Time:4:30 p.m. ET Audio-only Dial-in:Register Here Virtual webcast with slides:Register Here The virtual webcast will be available for replay in the ‘Investors’ tab of the Company’s website under ‘Investors’ > ‘Media’ > ‘Events and Presentations’, approximately two hours after the event. The Metals Company is an explorer of lower-impact critical metals from seafloor polymetallic nodules, on a dual mission: (1) supply metals for energy, defense, manufacturing and infrastructure with net positive impacts compared to conventional production routes and (2) trace, recover and recycle the metals we supply to help create a metal commons that can be used in perpetuity. The Company has conducted more than a decade of research into the environmental and social impacts of offshore nodule collection and onshore processing. More information is available at www.metals.co. Contacts Media | media@metals.coInvestors | investors@metals.co Forward-Looking Statements This press release contains “forward-looking” statements and information within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “believes,” “could,” “expects,” “may,” “plans,” “possible,” “potential,” “will” and variations of these words or similar expressions, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statements with respect to the Company’s strategy to pursue commercial recovery of seafloor polymetallic nodules under the U.S. regulatory regime; the outcome and timing of regulatory reviews of its applications submitted pursuant to the Deep Seabed Hard Mineral Resources Act of 1980 (DSHMRA); the potential adoption of final exploitation regulations by the International Seabed Authority (ISA); the impact of recent executive action by the U.S. government in support of domestic seabed mineral development; the expected use of proceeds from recent financings; the timing and success of feasibility studies and processing trials; and the Company’s operational and financial plans, including the potential development of a commercial-scale offshore nodule collection system and related onshore processing facilities. The Company may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various factors, including, among other things: the outcome and timing of regulatory reviews by NOAA under DSHMRA; the ability to obtain an exploitation contract from the ISA or permits from the U.S. government; risks related to the Company’s dual-path permitting strategy; changes in environmental, mining and other applicable laws and regulations; the timing and results of environmental assessments and technical studies; the development, testing and scaling of offshore collection systems; risks related to strategic partnerships and technology sharing; uncertainties relating to processing nodules at commercial scale; metals price volatility; the sufficiency of the Company’s cash and ability to secure additional financing on acceptable terms or at all; dependence on third parties, including Allseas Group S.A. and PAMCO; the outcome of any pending or future litigation; and other risks and uncertainties described in greater detail in the section entitled “Risk Factors” in the Company’s 2024 Annual Report on Form 10-K and in subsequent Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 27, 2025. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company expressly disclaims any obligation to update any forward-looking statements contained herein, whether because of any new information, future events, changed circumstances or otherwise, except as otherwise required by law. TMC the metals company Inc.Condensed Consolidated Balance Sheets(in thousands of US Dollars, except share amounts)(Unaudited)ASSETSAs atMarch 31,2025As atDecember 31,2024Current Cash$2,346 $3,480 Receivables and prepayments 5,012 1,851 7,358 5,331 Non-current Exploration assets 42,951 42,951 Equipment 713 771 Software development costs 1,958 1,928 Right-of-use asset 3,337 3,814 Investment 8,168 8,203 57,127 57,667 TOTAL ASSETS$64,485 $62,998 LIABILITIES Current Accounts payable and accrued liabilities 45,245 42,754 Short-term debt 9,978 11,775 55,223 54,529 Non-current Deferred tax liability 10,675 10,675 Royalty liability 14,000 14,000 Warrants liability 1,353 912 26,028 25,587 TOTAL LIABILITIES$81,251 $80,116 EQUITY Common shares(unlimited shares, no par value – issued: 356,617,022 (December 31, 2024 –340,708,460)) 495,804 477,217 Special Shares - - Additional paid in capital 140,656 138,303 Accumulated other comprehensive loss (1,203) (1,203)Deficit (652,023) (631,435)TOTAL EQUITY (16,766) (17,118) TOTAL LIABILITIES AND EQUITY$64,485 $62,998 TMC the metals company Inc.Condensed Consolidated Statements of Loss and Comprehensive Loss(in thousands of US Dollars, except share and per share amounts)(Unaudited) Three months ended March 31, 2025Three months ended March 31, 2024 Operating expenses Exploration and evaluation expenses$9,515 $18,123 General and administrative expenses 8,500 6,559 Operating loss 18,015 24,682 Other items Equity-accounted investment loss 35 78 Change in fair value of warrants liability 441 531 Foreign exchange loss (gain) 1,095 (266)Interest income (19) (102)Fees and interest on borrowing and credit facilities 1,021 271 Loss and comprehensive loss for the period$20,588 $25,194 Loss per share - basic and diluted$0.06 $0.08 Weighted average number of Common Shares outstanding – basic and diluted 345,346,393 311,521,854 TMC the metals company Inc.Condensed Consolidated Statements of Changes in Equity(in thousands of US Dollars, except share amounts)(Unaudited)Three months ended March 31, 2025Common Shares Special Shares Additional Paid in Capital Accumulated Other Comprehensive Loss Deficit TotalShares AmountDecember 31, 2024340,708,460 $477,217 $- $138,303 $(1,203) $(631,435) $(17,118)Issuance of shares and warrants under Registered Direct Offering, net of expenses5,000,000 2,237 - 2,763 - - 5,000 Shares issued as per At-the-Market Equity Distribution Agreement2,975,226 5,562 - - - - 5,562 Conversion of restricted share units, net of shares withheld for taxes7,933,336 10,788 - (10,788) - - - Share-based compensation and Expenses settled with equity- - - 10,378 - - 10,378 Loss for the period- - - - - (20,588) (20,588)March 31, 2025356,617,022 $495,804 $- $140,656 $(1,203) $(652,023) $(16,766) Three months ended March 31, 2024Common Shares Special SharesAdditional Paid in CapitalAccumulatedOtherComprehensiveLossDeficitTotalShares AmountDecember 31, 2023306,558,710 $438,239 $- $122,797 $(1,216) $(548,902) $10,918 Issuance of shares and warrants under Registered Direct Offering, net of expenses4,500,000 7,447 - 1,553 - - 9,000 Exercise of stock options120,000 144 - 46 - - 190 Conversion of restricted share units, net of shares withheld for taxes7,112,673 8,601 - (8,601) - - - Share-based compensation and Expenses settled with equity- - - 6,896 - - 6,896 Loss for the period- - - - - (25,194) (25,194)March 31, 2024318,291,383 $454,431 $- $122,691 $(1,216) $(574,096) $1,810 TMC the metals company Inc.Condensed Consolidated Statements of Cash Flows(in thousands of US Dollars)(Unaudited) Three months ended March 31, 2025 Three months ended March 31, 2024Cash provided by (used in) Operating activities Loss for the period$(20,588) $(25,194)Items not affecting cash: Amortization 58 85 Accrued interest on credit facilities 558 Lease expense 477 477 Share-based compensation and expenses settled with equity 10,378 6,896 Equity-accounted investment loss 35 78 Change in fair value of warrants liability 441 531 Unrealized foreign exchange movement 2,345 (293)Interest paid short-term debt (103) - Changes in working capital: Receivables and prepayments (3,161) 25 Accounts payable and accrued liabilities 213 5,543 Net cash used in operating activities (9,347) (11,852) Investing activities Acquisition of equipment and software (70) (340)Net cash used in investing activities (70) (340) Financing activities Proceeds from registered direct offering 5,000 9,000 Expenses paid for registered direct offering (472) (142)Proceeds from Shares issued from ATM 5,562 - Repayment of Debt (1,797) - Proceeds from exercise of stock options - 190 Net cash provided by financing activities 8,293 9,048 Decrease in cash$(1,124) $(3,144)Impact of exchange rate changes on cash (10) 293 Cash - beginning of period 3,480 6,842 Cash - end of period$2,346 $3,991

TMC Provides First Quarter 2025 Corporate Update

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