TMC the metals (NASDAQ:TMC) used its fourth-quarter 2025 corporate update call to outline a faster regulatory and development pathway built around the U.S. permitting regime for deep seabed minerals, while also detailing plans for potential onshore nodule processing in Texas and discussing year-end liquidity and quarterly results.
Shift to U.S. framework and permitting timeline
Chairman and CEO Gerard Barron framed the past year as a turning point following the company’s decision to prioritize the U.S. regulatory pathway under the Deep Seabed Hard Mineral Resources Act (DSHMRA), rather than continue to rely on the International Seabed Authority (ISA), which management characterized as stalled. Barron pointed to President Trump’s executive order on offshore critical minerals as a catalyst for U.S. momentum, noting that some directives have already been delivered, including modernization efforts at NOAA.
Shesky added that TMC’s consolidated application expands the company’s expected commercial recovery area from 25,000 square kilometers to approximately 65,000 square kilometers. He said there are now more than 10 applications in NOAA’s system, which management views as broader industry alignment around the U.S. framework.
Environmental work and technical studies
On the environmental front, Shesky said the company is nearing completion of its environmental impact statement process and stated that its environmental impact assessment is complete. He said the company’s work is informed by what he described as the largest environmental data set assembled for the project, “over a petabyte” in size, built over 15 years with leading institutions. The company expects its environmental impact statement to be made available for public comment under NOAA’s process.
Management also referenced technical studies released in August 2025, including a pre-feasibility study (PFS) for an initial production area and initial assessments for additional contract areas. Shesky said these studies produced SEC-compliant mineral reserves for a nodule project, which he described as a key marker of commercial viability, and emphasized that additional areas included in the new U.S. process were not covered by those prior studies.
During prepared remarks, Shesky cited economic outputs from the published studies, including a combined estimated net present value of $23.6 billion when combining a $5.5 billion NPV (PFS) and an $18.1 billion NPV (initial assessment). He also cited undiscounted life-of-project figures outlined in those studies of approximately $369 billion in revenue and EBITDA “in excess of $200 billion,” while arguing the company’s market valuation remained below what he described as comparable peer developers and explorers.
Offshore system plans with Allseas
Operationally, Barron said the company reached commercial agreement on key terms with Allseas and expects to finalize and sign a definitive agreement in the coming days. He described the arrangement as centered on development and operation of the “Hidden Gem” offshore system, which management called the first commercial nodule collection system. Barron said the integrated system is designed for a nominal capacity of 3 million tonnes per annum, using the Hidden Gem, two collector vehicles, and a vessel to transfer nodules to bulk carriers for shipment to shore.
Long-lead components such as the riser, launch and recovery systems, and an umbilical are already being progressed, Barron said. Management reiterated a target of commissioning in Q4 2027.
In the Q&A, Barron said the company has elected to run a two-collector model. He also indicated the company expects to begin production with one collector, then move to a second collector in production, with an emphasis on achieving higher production rates to improve economics.
Texas processing hub concept and feasibility work
A major theme of the call was a potential U.S.-based nodule processing and refining hub at the Port of Brownsville, Texas. Barron said the company secured an exclusive right over a potential lease option at the port and has developed a preliminary master plan, with a pre-feasibility study underway for a 12 million tonnes per annum “nodule industrial park.” He said TMC is not committing capital at this time and noted that tolling options remain available.
Asked about potential shipping impacts, Barron did not provide specific numbers but said management believes processing in Brownsville could be cheaper than China, Indonesia, or Japan due to energy costs, which he called the largest cost input for processing. He also said shipping would require use of the Panama Canal and noted that while the site has deep-water berths, they may not accommodate the largest ships initially.
Management stressed that federal support would be important to unlocking onshore processing plans. In response to a question about permitting and timelines, Barron emphasized that the key prerequisite is securing NOAA’s commercial recovery permit, which he said would help “unlock” support and potential investment from agencies and cabinet departments. The company also described continued discussions with Texas officials, including the governor’s office.
On timing, Barron said Hatch is refreshing the PFS to reflect a Brownsville site and that work should be ready “very soon.” He also said the company anticipates having a feasibility study for the Texas site “well before the end of the year,” with an end-of-October target date discussed.
On the processing flowsheet, Barron said the plan would be to build a pyro-metallurgical front end in Brownsville “if we were to go down that pathway,” while noting a continuing technical relationship in Japan. He highlighted U.S. reliance on imported nickel and suggested the company sees an opportunity for domestic processing capacity.
Royalty vehicle, defense consortium, and financial results
Management also highlighted the upcoming Nasdaq listing of The Metals Royalty Company, which Barron said is expected to begin trading in April under ticker “TMCR.” He said TMCR holds a 2% gross royalty on TMC’s NORI area stemming from an agreement signed in 2023, while TMC retains the right to repurchase up to 75% of the royalty over time at a capped return, potentially reducing it to 0.5%. TMC also holds a 25% equity stake in TMCR, Barron said.
Separately, Shesky noted TMC recently joined the Defense Industrial Base Consortium, which he said supports Department of Defense efforts to address supply chain vulnerabilities and strengthen the defense industrial base.
On liquidity, Shesky reported a year-end 2025 cash balance of $117.6 million, with approximately $110 million expected as of March 31, 2026. Liquidity, defined as cash plus borrowing capacity on the unsecured credit facility, was $162 million at year-end 2025 and is expected to be about $154 million at March 31, 2026. Shesky said the company had “no imminent need” to raise funds in the public markets, while noting it plans to file a new Form S-3 shelf registration statement with its 10-K and may refresh its at-the-market program in the future. He said the company has not used its ATM since April 2025.
For the fourth quarter of 2025, TMC reported a net loss of $40.4 million, or $0.08 per share, compared to a net loss of $16.1 million, or $0.04 per share, in the year-ago quarter. Shesky attributed the year-over-year increase in net loss largely to higher general and administrative expense, which rose to $34.1 million from $8.1 million, driven by higher share-based compensation from accelerated amortization of awards granted in the third quarter of 2025 and increased legal, consulting, and personnel costs. Exploration and evaluation expense rose to $10.6 million from $8.3 million, which he said reflected higher share-based compensation, partially offset by lower engineering work.
Free cash outflow in the fourth quarter was $11.5 million, compared with $13.8 million in the fourth quarter of 2024. For full-year 2025, free cash outflow was $43.1 million, compared with $44.0 million in 2024. Shesky said the company believes its cash on hand will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months.
Shesky also described cash inflows during 2025, including $85.2 million from a Korea Zinc investment, $41.2 million from registered direct offerings (including a Hess family investment), $14.8 million from ATM use, and $27 million from option and warrant exercises. He said some proceeds were used to repay a $7.5 million Allseas working capital loan and a $4.3 million draw on the Ares unsecured credit facility. Accounts payable and accrued liabilities totaled $46 million at year-end, including $34 million owed to Allseas, most of which he said can be settled in equity.
About TMC the metals (NASDAQ:TMC)
TMC the metals company Inc, a deep-sea minerals exploration company, focuses on the collection, processing, and refining of polymetallic nodules found on the seafloor in California. It primarily explores for nickel, cobalt, copper, and manganese products. The company holds exploration and commercial rights in three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean. Its products are used in electric vehicles (EV), renewable energy storage markets, EV wiring, energy transmission, manganese alloy production required for steel production, and other applications.
