TMC the metals (NASDAQ:TMC) Posts Earnings Results, Hits Estimates

TMC the metals (NASDAQ:TMC) released its earnings results on Thursday. The company reported ($0.06) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.06), FiscalAI reports. The business had revenue of $0.08 million for the quarter.

Here are the key takeaways from TMC the metals’ conference call:

• NOAA now expects to decide on certification of TMC’s USA-A application by mid-December, later than the company had hoped. NOAA has not identified deficiencies, but certification would only begin the final environmental review and additional public-comment stages.
• TMC and Allseas revised the offshore plan to cut estimated capital needed to reach first production from about $800 million to $300 million shared between them. The phased approach targets 1 million tons annually at first, potentially rising to 1.5 million in year two, while deferring larger investments and potentially enabling positive EBITDA at early volumes.
• TMC is evaluating PAMCO’s Japanese plant as a toll-processing option if its Brownsville facility is not ready for initial production. Japan’s government has a financing plan to cover up to half of PAMCO’s required modifications, while TMC and PAMCO are still discussing the remaining costs; Brownsville investment remains contingent on U.S. government support.
• The company highlighted new peer-reviewed environmental studies, including plume modeling that it says found most mobilized sediment settling within 10 meters of collector tracks and plumes dissipating within two to five days after operations cease. TMC said its research dataset has supported 46 peer-reviewed studies, though the findings are part of the company’s case for the project.
• TMC reported $123 million of liquidity and said it expects this to cover working capital and capital commitments for at least 12 months, but Q3 operating cash outflow increased to $19.4 million from $11.5 million a year earlier. The lower net loss of $28.4 million versus $185 million was partly due to lower share-based compensation and more favorable non-operating items.

TMC the metals Stock Up 1.1%

TMC the metals stock opened at $2.33 on Friday. The company has a market cap of $1.03 billion, a price-to-earnings ratio of -3.11 and a beta of 2.22. The firm’s fifty day moving average is $3.25 and its 200 day moving average is $4.67. TMC the metals has a 52-week low of $1.91 and a 52-week high of $10.05.

Key Stories Impacting TMC the metals

Investors following TMC have been watching these stories:

• Positive Sentiment: TMC reported a third-quarter loss of $0.06 per share, narrower than FactSet’s $0.07 loss estimate; the loss also narrowed year over year. Earnings Flash
• Positive Sentiment: The company reported about $123 million in liquidity, including cash and credit facilities, as of September 30. TMC third-quarter corporate update
• Negative Sentiment: Despite the narrower loss, TMC recorded just $0.08 million in quarterly revenue, a $28.4 million net loss, and $19.4 million of cash used in operations. TMC third-quarter corporate update

Analysts Set New Price Targets

A number of research analysts recently commented on the company. Zacks Research raised TMC the metals from a “strong sell” rating to a “hold” rating in a report on Wednesday, November 4th. Stifel Nicolaus began coverage on shares of TMC the metals in a research report on Friday, August 28th. They set a “buy” rating and a $10.00 target price for the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of TMC the metals in a research note on Thursday, October 15th. Finally, HC Wainwright decreased their price target on shares of TMC the metals from $11.75 to $5.50 and set a “buy” rating on the stock in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $8.88.

TMC the metals Company Profile

TMC the metals company Inc. is a deep-sea minerals exploration and development company focused on polymetallic nodules found on the ocean floor. The nodules contain metals including nickel, copper, cobalt and manganese, which are used in batteries, stainless steel and other industrial applications. The company’s exploration activities are centered in the Clarion-Clipperton Zone of the Pacific Ocean. Through subsidiaries sponsored by Pacific island nations, TMC holds exploration contracts with the International Seabed Authority.