The Metals Company Posts Q2 Net Loss

The Metals Company (TMC -0.55%), an early-stage mining firm developing deep-ocean resources for critical battery metals, released its second quarter 2025 earnings on August 14, 2025. The company reported a GAAP net loss of $74.3 million, or $0.20 per share. The results reflect large, non-cash warrant charges tied to recent equity deals and share price changes. Most notably, The Metals Company reported major progress on U.S. regulatory compliance, robust new technical studies on resource economics, and a massive capital infusion that solidified its short-term financial position. The period marked notable advances for The Metals Company’s long-term development but also highlighted the ongoing cash burn required as it transitions toward commercialization.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

Business overview and recent focus

The Metals Company is a development-stage company focused on unlocking critical battery metals—nickel, copper, cobalt, and manganese—by harvesting polymetallic nodules from the deep ocean floor. These nodules are rock-like deposits laying on the seabed in the Clarion-Clipperton Zone (CCZ) of the Pacific Ocean. The Metals Company aims to supply metals vital for electric vehicles, renewable energy infrastructure, and grid electrification, offering an alternative to traditional land-based mining and Chinese-controlled supply chains.

In recent quarters, The Metals Company has concentrated on clearing regulatory hurdles, scaling up its technology with industry partners, and securing the capital needed for its transition from mineral explorer to future metals producer. The company’s progress relies on successfully obtaining mining permits, developing efficient collection and processing technologies, and ensuring responsible environmental management throughout its operations.

Quarter in review: Regulatory steps, partnerships, and financial performance

This quarter, The Metals Company achieved major regulatory milestones by advancing its U.S. pathway for deep-sea mining. On August 11, 2025, The Metals Company USA achieved full compliance from the National Oceanic and Atmospheric Administration (NOAA) for its exploration applications, confirming priority rights over two prime areas in the CCZ. Both applications entered the certification stage in late July 2025, expected to last approximately 100 days, bringing The Metals Company closer to its target of first commercial production from the NORI-D project area in Q4 2027. Updated sponsorship agreements with the island states of Nauru and Tonga further support The Metals Company’s social license to operate.

Alongside regulatory progress, The Metals Company released new technical studies adhering to U.S. Securities and Exchange Commission (SEC) standards. These reports estimate the combined Net Present Value (NPV) of its projects at $23.6 billion, based on resource estimates and production models, as disclosed in SEC S-K 1300-compliant technical report summaries published on August 4, 2025. For the NORI-D project, The Metals Company forecasts a steady-state annual output from 2031 to 2043 of 97,000 tonnes of nickel, 2.39 million tonnes of manganese, 70,000 tonnes of copper, and 7,400 tonnes of cobalt, with an after-tax Internal Rate of Return (IRR) of 27% (non-GAAP), according to the Pre-Feasibility Study. Management cautioned that these projections remain preliminary and subject to major permitting and engineering risk, as full feasibility studies are still to come.

The Metals Company further diversified its financing sources with a series of equity transactions. Korea Zinc, a major refining company, acquired an approximately 5% strategic stake in The Metals Company by investing $85.2 million in June 2025 and securing future warrants to purchase additional shares. After approximately $2.0 million in offering expenses, net proceeds to the company were approximately $35.0 million from a registered direct offering, boosting the company’s total cash to $115.8 million as of quarter-end. This strong cash position marked a major improvement from $3.5 million as of December 31, 2024 and is expected to provide sufficient liquidity for at least the next twelve months from June 30, 2025, as The Metals Company advances permitting and project engineering.

Still, financial results for the period underscored the high cost of early-stage development. The company posted a GAAP net loss of $74.3 million, driven by $33.1 million in non-recurring charges for warrants granted to the Republic of Nauru and another $16.2 million due to increased warrant liability as The Metals Company’s share price rose. Operating loss widened to $22 million, up 8.4% compared to Q2 2024. Exploration expenses were $10.5 million, while general and administrative costs grew to $11.5 million (GAAP) as The Metals Company ramped up financing efforts and regulatory work. Cash used in operations was $10.6 million, in line with the company’s status as a high-burn, pre-revenue enterprise.

Operationally, The Metals Company and its partners, including Allseas and PAMCO, continued to prepare the offshore collection systems and onshore metal processing capabilities. Allseas leads the development of the nodule collection technology—specialized engineering systems designed to lift nodules from the seabed and transfer them to surface vessels. PAMCO, a Japanese processing company, demonstrated the ability to convert nodule materials into high-grade metal products, supporting The Metals Company’s ambition for a “near-zero waste” process. These partnerships are central as The Metals Company prepares for the technical and logistical complexities of commercial-scale production.

Market demand trends and geopolitical factors remain highly supportive of The Metals Company’s business proposition. The company’s metals portfolio aligns with rapidly growing requirements from electric vehicle manufacturing, grid expansion, and renewable energy initiatives. Recent signals from U.S. policymakers—including executive orders prioritizing domestic mineral supply chains—bolstered The Metals Company’s regulatory outlook. International developments are less certain, as the International Seabed Authority (ISA) has delayed its Mining Code, with no new target date for adoption agreed as of July 2025, but The Metals Company is increasingly pursuing a U.S.-focused route for initial operations. The company also pointed to industry interest from firms like Lockheed Martin, further validating the commercial potential of deep-sea resources.

Looking ahead: Guidance and investor focus

Management did not issue formal financial guidance for the remainder of fiscal 2025 or for the newly started fiscal year. Instead, leaders stressed their priority of clearing the U.S. permitting process, advancing technical readiness of the offshore and onshore supply chain, and continuing disciplined cash management. Key upcoming events for the NORI-D project include regulatory certification (with both applications entering the certification stage in late July 2025, expected to last approximately 100 days), publication of more detailed feasibility data (including the August 2025 release of the Pre-Feasibility Study), and progress toward production milestones. The Metals Company expects to provide further updates on permitting and commercialization timelines as regulatory processes unfold.

Investors and stakeholders should closely watch the company’s progress through the permitting pathway, execution of partnerships for technology and processing, and ongoing balance-sheet discipline. Continued cash burn and lack of revenue mean that access to additional capital and achievement of permitting milestones will remain the most important issues in the quarters to come. The Metals Company does not currently pay a dividend.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.