The Metals Company reported a net loss of $20.5 million for Q3 2024.
From GlobeNewswire: 2024-11-14 16:55:00
TMC the metals company Inc. reported a net loss of $20.5 million and net loss per share of $0.06 for the third quarter of 2024. The company also announced a Registered Direct Offering with expected gross proceeds of $17.5 million through equity issuance at $1.00 per share, including warrant coverage of 50%.
The Metals Company’s CEO announced the submission date of June 27, 2025, for NORI’s exploitation application to the ISA. The company is focusing on regulatory progress and not raising funds for CAPEX until sufficient clarity is obtained. Recent Washington initiatives and support from key figures indicate growing interest in seafloor metals development.
A Registered Direct Offering raised a minimum of $17.5 million for The Metals Company, led by its largest non-affiliate institutional shareholder. The shares were issued at $1.00 per share, with half warrant at $2.00 per share expiring in 5 years. NORI is expected to submit its ISA exploitation application on June 27, 2025, following strategic decisions by the ISA Council. The company is reducing operating expenses and deferring capital expenditures until after the application is reviewed. The Metals Company is exploring new strategies to develop a services business for seafloor resource development and optimize its resource portfolio. The company is in discussions for services contracts related to new exploration, resource definition, environmental impact assessments, data management, and offshore campaign execution. They are also exploring opportunities to enter new exploration contract areas and already permitted properties.
A global stakeholder webinar was held by NORI to discuss the Cultural Heritage Impact Assessment for the NORI-D polymetallic nodule project. Recent baselining work and consultations in Nauru and Tonga were highlighted to study the cultural heritage assessment for the project.
Progress on ISA Mining Code regulations was discussed at a recent Council meeting. The draft regulations for mineral resource exploitation in the Area are being consolidated, with a revised text expected by November 2024. TMC is engaged with the Secretary-General-Elect to work towards finalizing the Mining Code.
TMC CEO testified to the U.S. House of Representatives on the benefits of seafloor nodules. The discussion focused on reducing U.S. reliance on Chinese imports of critical minerals by exploring seafloor nodules to secure key minerals for the energy transition and defense sectors.
Financially, the company reported a net loss of $20.5 million for the quarter ended September 30, 2024, compared to $12.5 million for the same period in 2023. Exploration expenses increased primarily due to share-based compensation, mining development costs, and higher personnel expenses.
A conference call will be held to discuss recent corporate developments, financial results, and upcoming milestones. The call will provide insight into the company’s financial position, exploration activities, and strategic outlook moving forward.
The Metals Company explores lower-impact battery metals from seafloor polymetallic nodules with a focus on sustainability and recycling. They hold exploration and commercial rights in the Pacific Ocean, regulated by the International Seabed Authority and sponsored by Nauru, Kiribati, and Tonga governments.
Forward-looking statements in this press release address potential commercial operations, application to the ISA for an exploitation contract, U.S. government actions, dialogue with government officials, regulations for deep-sea polymetallic nodules, and future financial and operating plans. Investors are advised not to place undue reliance on these statements. The Company faces potential challenges in achieving its financial goals due to various factors such as regulatory uncertainties, environmental liabilities, and political instability. These factors could impact the Company’s ability to secure exploitation contracts and develop minerals in sufficient quantities for commercial operations. The Company’s future performance may be affected by changes in laws, regulations, and policies, as well as risks associated with natural hazards and fluctuations in transportation costs and metal prices. Additionally, the Company’s dependence on Allseas Group S.A. and the need for additional financing could pose challenges to its operations. The Company’s ability to continue as a going concern may be impacted by its limited operating history and cash resources, as well as potential litigation. 1. In a recent study, researchers found that people who drink coffee regularly may have a lower risk of developing Alzheimer’s disease. The study, published in the journal Frontiers in Aging Neuroscience, found that caffeine may protect against the buildup of amyloid plaques in the brain, a hallmark of the disease.
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Read more at GlobeNewswire:: The Metals Company Provides Third Quarter 2024 Corporate