Summary of TMCWW Q2 2026 Earnings Call

1Key Financial Results and Metrics

Net Loss: $60.1 million ($0.14 per share), improved from a net loss of $74.3 million ($0.20 per share) in Q2 2025.

Exploration and Evaluation Expenses: Increased to $56.1 million from $10.5 million in Q2 2025, largely due to $37.5 million owed to Allseas.

General and Administrative Expenses: Rose to $15.6 million from $11.5 million in Q2 2025, primarily due to increased share-based compensation.

Net Cash Used in Operating Activities: $20.1 million, up from $10.7 million in Q2 2025, affected by tax timing.

Liquidity: $143 million as of June 30, 2026, including $44 million from an undrawn credit facility.

2Strategic Updates and Business Highlights

Regulatory Progress: TMC USA's applications are advancing through NOAA, with expectations for public comment processes to begin soon. Certification for USA-A is anticipated in October 2026.

Partnerships: New agreements with Eco Minerals and Mariana Minerals aim to enhance operational capabilities and resource definition.

Allseas Collaboration: Progressing towards the first commercial nodule collection system, with procurement and subcontracting phases underway.

Nodule City Development: Plans for an integrated processing and refining hub in Brownsville, Texas, are advancing, with feasibility studies nearing completion.

3Forward Guidance and Outlook

TMC expects to receive necessary permits before the commissioning of its vessel in Q4 2027. The company is optimistic about the potential for government support for domestic processing capabilities.

The focus remains on establishing a robust supply chain for critical minerals, with scalability being a key advantage of the proposed operations.

4Bad News, Challenges, or Points of Concern

Regulatory Delays: NOAA's slower-than-expected progress on permitting has pushed back timelines, leading to a revised expectation for the permanent grant.

Stock Performance: TMC's stock has lagged in 2026, attributed to various factors, prompting management to emphasize the need for progress to improve market valuation.

Increased Costs: Significant rises in exploration and evaluation expenses, particularly due to commitments to Allseas, may pressure future financials.

5Notable Q&A Insights

Eco Minerals Agreement: The joint campaign will focus on both TMC's and Eco's zones, enhancing resource certainty.

Government Support: Discussions with U.S. agencies are ongoing, with the administration showing strong interest in reshoring critical mineral supply chains.

Allseas Exclusivity: TMC has an exclusive arrangement with Allseas for the nodule collection system, which is expected to yield significant operational synergies.

Royalty Buyback: Management indicated a strategic approach to repurchase royalties from The Metals Royalty Company, emphasizing a partnership rather than a traditional client relationship. Overall, TMC is navigating regulatory challenges while advancing strategic partnerships and operational plans, with a focus on establishing a domestic supply chain for critical minerals.