The following is a summary of the TMC the Metals Company Inc. (TMC) Q4 2023 Earnings Call Transcript:
Financial Performance:
TMC reported a net loss of $33.4 million, or $0.10 per share, in the last quarter of 2023, a decrease from the prior-year period's net loss of $109.5 million, or $0.41 per share.
The net loss includes exploration and evaluation expenses of $26.7 million and general & administrative expenses of $6.5 million.
The company ended 2023 with a cash balance of $6.8 million, zero debt, and access to a $25 million unsecured credit facility valid through August 2025, and a recently secured additional $20 million unsecured credit facility granted by Gerard Barron and ERAS Capital LLC.
TMC's NORI-D project has an estimated net present value of $8.1 billion at current metal prices.
Business Progress:
TMC completed an integrated pilot system test and a pyrometallurgical processing pilot to derisk their operations.
Notably, they successfully extracted the first-ever nickel sulfate from ocean floor nodules.
They plan to initiate production offshore by end-Q1 2026, with Allseas.
Regulatory advancements made at the International Seabed Authority meeting indicate a positive future for the industry.
TMC released regulatory text in February 2023, signaling a move into the final Mining Code negotiations stage.
The application for the exploitation contract is slated to be launched after the 2024 ISA session.
TMC is in active conversations with potential investors and business partners, focusing on securing strategic partnerships to fund its operations.
The company is optimistic about governmental support, such as the Department of Defense Title III grant, and has initiated partnerships with several developing nations.
TMC is actively engaging with automobile Original Equipment Manufacturers (OEMs) and monitoring international relations with respect to deep-sea mining.
More details: TMC the metals IR
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