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ISA Discussions on Track and PAMCO MoU Adds a Strong Partner

3Q23 results showcase management’s focus. TMC reported 3Q23 results that included solid cost control as G&A expenses declined to $4.6 million and operating loss was reduced to $12.5 million for the quarter versus the $28.6 million loss in the year-ago period. Liquidity to cover operating and capital costs. With $22.5 million of cash on hand as of September 2023 and with the infusion of the $25 million in equity raise (inclusive of $9 million to be received by the end of 2023), in addition to the $25 million undrawn unsecured credit facility from Allseas, TMC has the liquidity and capital tools it needs to submit the provisional application to the ISA in 2H24. The company continues to work on securing more strategic funding to ensure sufficient liquidity to get into production once the exploitation application has been submitted. PAMCO MoU further de-risks TMC business model. Following the 3Q23 release, TMC announced the signing of a binding MoU with PAMCO to complete a feasibility study to process 1.3M/year wet tons of polymetallic nodules (PMN) to produce Ni-Co-Cu alloy (a precursor to matte product) and manganese silicate, an intermediate material used in steelmaking, as the company continues to put in place components of its asset-light approach of getting into Project Zero production and beyond. Environmental stewardship exemplified. TMC filed its second annual Impact Report, highlighting its efforts and progress in ensuring the critical metals that the world requires to enable the transition away from fossil fuels and petrochemicals can be produced without doing more harm than good to the planet in the process. To further the cause of science-based approach to deep-sea mining, TMC is about to embark on an ocean campaign to the site of last year’s large-scale pilot collection project in order to characterize the environmental impact of polymetallic nodule collection, as part of NORI’s Environmental and Social Impact Assessment (ESIA) and thereby provide the ISA and the scientific community with real world data that can be utilized in developing the regulation and mining code for seabed mining. ISA work continues, despite desperate opposition. The UK has become the latest country to add its voice to the small chorus of 23 nations (out of 169 member states) calling for a pause or moratorium on the development of a mining code for seabed exploitation in international waters. Despite the opposition of some of its members, the ISA continues to fulfill its obligations under the UN charter to develop seabed mining regulations, having completed its November session during which regulations have been streamlined and moved to the next phase.