Research Reports

Summary

TMC the metals company Inc. reported Q1 2026 net loss of $20.6 million ($0.05 per share), announced a commercial agreement with Allseas for the first nodule collection system (3.0M wet tonnes/annum, commissioning targeted for Q4 2027), and received NOAA's full compliance determination for its consolidated USA A permit application — a key regulatory step toward expected commercial approval before end of Q1 2027.

Key takeaways

Net loss was $20.6 million ($0.05 per share) for Q1 2026, unchanged in dollar amount but improved EPS versus $20.6 million ($0.06 per share) in Q1 2025 — indicating share count growth moderated loss impact.

TMC and Allseas signed a commercial agreement to develop and operate the first polymetallic nodule collection system, with nameplate capacity of 3.0 million wet tonnes per annum and commissioning targeted for Q4 2027, subject to regulatory approvals.

NOAA determined TMC USA’s consolidated exploration license and commercial recovery permit application for the USA A project is in full compliance with DSHMRA — advancing it to certification stage and supporting expectation of final permit before end of Q1 2027.

Current liquidity stood at ~$164 million as of March 31, 2026, comprising $119.7 million cash (including $9 million from sell-to-cover tax transactions) and borrowing availability under credit facilities.

TMC USA filed the first consolidated application under NOAA’s new regulatory framework, expanding the commercial recovery area to ~65,000 km² with an estimated 619 Mt of wet nodules — increasing resource scale and permitting efficiency.

The Metals Royalty Co. (TMCR) began Nasdaq trading on April 8, 2026; TMC holds ~25% equity and retains rights to repurchase up to 75% of the 2.0% GORR on NORI, reducing it to 0.5% if both repurchases are executed.

Full analysis

TMC reported a Q1 2026 net loss of $20.6 million ($0.05 per share), identical in dollar amount but improved on a per-share basis versus $20.6 million ($0.06 per share) in Q1 2025 — reflecting an increase in weighted-average shares outstanding, likely driven by equity-based compensation activity. Exploration and evaluation expenses rose to $13.3 million from $9.5 million year-over-year, while general and administrative expenses more than doubled to $20.7 million, primarily due to higher share-based compensation amortization and personnel costs. The $0.6 million cash used in operations contrasts with the $119.7 million cash balance as of March 31, 2026 — which included $9 million received on the last day of the quarter related to sell-to-cover tax transactions — resulting in total liquidity of approximately $164 million. This liquidity position, supported by credit facilities with ERAS Capital LLC and Chairman Gerard Barron, is deemed sufficient to fund operations for at least twelve months. Strategically, the Allseas commercial agreement marks a pivotal shift from pilot-scale validation to defined commercial execution: the system design integrates two collector vehicles operating at >4 km depth, surface vessel Hidden Gem, and coordinated offshore logistics including fuel supply, crew changes, and nodule transfer — all intended to enable continuous, scalable production. NOAA’s full compliance determination for the USA A consolidated application accelerates the U.S. regulatory pathway, triggering sequential milestones including Federal Register certification, EIS scoping, public comment, and final permit issuance — with TMC explicitly expecting conclusion before end of Q1 2027. These developments collectively de-risk the path to first commercial production and strengthen TMC’s positioning for project-level financing discussions, as noted by management.