The metal company has risen nearly 1400% at its low …
And it still has not earned any dollars in income.
They try to reclaim nickel, cobalt and copper – not on the land, but from the ocean floor.
Which means that they avoid China, deforestation and half of the global supply chain.
But they also burn cash as if it comes out of fashion, diluted shareholders like a crazy and bet the house on government goods inspections that do not even exist.
Retail investors chase the hype. I look at the dilution. And the real catalyst that has not yet happened.
In the past, DeepGreen Metals, the metal company was founded in 2011 and was merged with Sustainable Opportunities Acquisition CorpOr SOAC, in a reverse merger in 2021 to form what is now the Metals Company, a Canadian deep -sea mine company.
TMC focuses on exploring and developing mining in the Clarion – Clipperton Zone In the Pacific Ocean between Hawaii and Mexico.
The area is known for its potentially rich polymetallic nodules, which contain metals such as nickel, cobalt, copper and manganese. These basic elements are crucial for the production of batteries of electric vehicles, storage systems for renewable energy and other clean energy technologies.
Now let’s go to the interesting question: why should that do You Is as an investor?
Well, nickel, cobalt, copper and manganese are usually mined on the surface, which leads to many ugly consequences of mining, including deforestation, destruction of habitats and pollution of toxic waste.
So, yes, having a metal source that neatly bypasses the problems related to on-land mining can be a compelling investment proposition. It is especially interesting because of the accelerated acceptance of EVs and renewable energy initiatives around the world.
However, the proposed mining activities of TMC have their disadvantages.
Deep sea line is its own series of risks, including irreversible damage to marine ecosystems and biodiversity, as well as the potential release of sediment plumes that can spread toxins over ocean areas. We will talk more about that later.
Stock performance
For now we go into the juicy pieces of the stock. In particular, his price movement, especially around the early years.
The Metals Company (TMC) went publicly through a merger with a special goal -acquisition company (Spac) called Sustainable Opportunities Acquisition Corporation (SoAC
So the merger was announced in March 2021 and completed on September 9 of the same year. What is interesting here is that SOAC, the pre-Merger Public Company, was traded around the $ 10 level before the actual merger, but then the volatility came when September came.
Since then, the share price fell and was mainly traded under $ 2 and reached a low of 51 cents per share in December 2022.
However, since then, TMC shares have undergone a sort of Renaissance in 2025 and it is now being traded at $ 7.64. For the record, that is an increase of 566% of 52 weeks and no less than 1,395% growth in its low point.
Financial
Now, with that kind of growth, you would think that the company reported good news in its financial data around that time. Perhaps income is enriched, or it started to become profitable.
Well, not exactly.
You see, the metal company is still in the pre-phase. Most financing comes from the company’s capital, private investments in public equity or pipe financing, as well as secondary supply supply. The financial data is therefore usually operational losses and cash combustion, which can be expected in a starting mining.
So far, the operational costs of TMC were irregular, with spikes in 2021 and 2022 because of the costs related to the merger, exploratory activities and engineering and studies at an early stage. Then there was a cost increase of 12% from 2023 to 2024, which led to an increase in losses by 11%. But again, it’s pre-feeding, so this doesn’t give us the complete picture.
I would claim that a better way to gauge the performance of the company is to investigate his cash flow, a point that has been increased in my Discord channel.
The operational cash flow of the company has been up since 2022, which can be considered a good sign, depending on your prospects.
However, the TMC depends on debts and secondary stocks to finance its activities. In 2024, the management issued shares worth more than $ 29 million-that is an increase of 80% on an annual basis!
Not only that, TMC last announced May it issue 12.3 million extra ordinary shares For $ 3 per share, to raise nearly $ 37 million, which represents an increase of 26% compared to last year.
And moreover, the company has issued another 19.6 million ordinary shares To Korea zinc last June for $ 85.2 million.
Dilution and risks for income
TMC’s issue of new shares accelerates and it is a fairly common way to finance its activities in the short term. This means that your shares may be less valuable as more new shares are issued, especially if the company do not make those costs in profit.
Now the effect can be less visible when the stock price is raising, as it is now, but when the chips are down and the ratings are calculated, dilution can have a significant impact.
And if we take the issue on the line, more shares can make it more challenging to achieve profitability per share. Think about it: the more slices of cake there are, the thinner every slice becomes.
And with the metaphorical cake still theoretically at the moment, well, it will be difficult to fill that board.
Dependence on hype and speculation
Another potential weakness that I see in TMC is that there seems to be limited tangible Reasons behind the explosive price movement.
Many analysts are of the opinion that this year’s growth growth is mainly due to the increase in the index, so that the share in turn increases. Also the US-China Trade War Seems to have had a positive effect.
But China Mines and sells a significant part of the world’s critical minerals, which are essential for electronics, defense systems and green technologies. Since the US is not exactly the best conditions with China, it loses access to those minerals.
So, who will We used to fill the gap in raw materials? Mining companies with activities in the US, such as – you guessed it – TMC.
But so far none has been tangible catalyst. The company has submitted license applications to the National Oceanic and Atmospheric Administration, and CEO and Chairman Gerard Barron testified for the American congress to emphasize the benefits of deep sea mining.
However, this is more like sparks than on a real fire. And given how Flip-Flopy has been the current American administration, we are that far From a certain thing. And even if it was certain, international laws are a completely different matter.
Potential impact on the environment
And last but not least, many scientists and environmental analysts warn that deep-sea-mining can have catastrophic and, even worse, irreversible effects on the biodiversity of the ocean. It is no joke that we know more about the surface of the moon than our ocean floors, so hurrying in the deep-sea-mining commercialization can cause biological disasters with which we are not equipped as a species to handle. So, TMC stands for a pushback and it will have to prove that it can offend in a responsible manner before it can get off the ground or the seabed.
But enough about downfall and gloom – let’s look at what could possibly stimulate the price of TMC higher.
Increasing EV & Battery -requirements
The International Energy Agency Estimate that global EV battery demand will grow to more than 3 Terawatt hours in 2030, which represents a huge increase of 200% compared to 2024.
The core objectives of the company are important components for EV batteries, so if TMC plays his cards well and everything is in line, it can be strategically positioned to meet that growing demand.
Diversity of the Supply Chain
Another positive is the efforts to open global supply lines. If there is one thing that the American trade war has taught us, it is a bad idea to be dependent on one country for the raw materials that run the global economy.
That is why certain countries insist on more diversified supply chains, such as the US-Japan Agreement and The EUs Critical Acting, among other things. Again, with TMC that offers a potential alternative to China’s mineral dominance, it is no surprise that the company has attracted considerable attention.
Is TMC a purchase?
In general, I think TMC is a compelling speculative Investments, with an emphasis on speculative. The global shift to green energy and the switch from the Chinese mineral industry can benefit in the long term if it can overcome the financial, regulatory and environmental nuisance on the way. If you have a high tolerance at risk, TMC may be worth it. Even if you are more on the conservative side, like me, TMC guarantees a further look – but at a lower price than what it is currently trading. I propose to look forward to dips and pullbacks.
So that’s it for my analysis of the mineral company. What do you think of this company? Do you think it needs what is needed to turn his vision into a viable undersea company?
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