TMC releases PFS, publishes first probable mineral reserves for deep-sea nodules

The Metals Company (NASDAQ: TMC) has published a technical summary of the pre-feasibility study (PFS) for its proposed NORI-D polymetallic nodule project in the Clarion Clipperton Zone (CCZ) of the Pacific Ocean.

The report — prepared in accordance with SEC Regulation S-K (SK-1300) — marks a world-first declaration of probable mineral reserves for deep-sea polymetallic nodules.

The Canadian miner, which has exclusive access to the Nori Clarion-Clipperton Zone, in March formally initiated a process under the US Department of Commerce to apply for exploration licenses and permits to extract minerals from the ocean floor.

Mining international waters is in the spotlight as companies and countries are looking at minerals concentrated on the ocean floor that can be used in batteries for smart phones and electric vehicles.

Alongside the PFS, TMC announced the publication of an initial assessment (IA) for the remainder of its resource in the NORI and TOML blocks in the CCZ, with a measured and indicated mineral resource of 73 million tonnes grading 1.30% nickel, 0.20% cobalt, 1.2% copper and 30.2% manganese with an abundance of 12.8 kg/m², and an inferred mineral resource of 1.2 billion tonnes grading 1.30% nickel, 0.20% cobalt, 1.1% copper and 28.7% manganese with an abundance of 11.6 kg/m². The resource supports an after-tax net present value of $18.1 billion and internal rate of return of 35.6%. 

The mineral resource reports follow TMC USA’s April submission of an application for a commercial recovery permit under the US Deep Seabed Hard Mineral Resources Act (DSHMRA), along with two exploration license applications.

The reports also follow an $85 million investment from Korea Zinc in June. The deal gives Korea Zinc a 5% stake in TMC through the purchase of 19.6 million shares at $4.34 each. It also includes a three-year warrant allowing the South Korean refiner to acquire an additional 6.9 million shares at $7 apiece.

TMC’s stock was down 6.2% in mid-afternoon trading on the Nasdaq, with a $2.2 billion market capitalization.

TMC’s bid to become the first company to gain approval to develop deep sea minerals has been controversial. Environmental groups are calling for all activities to be banned, warning that industrial operations on the ocean floor could cause irreversible biodiversity loss.

Despite the opposition, TMC CEO Gerard Barron has declared the debate over.

“The combined net present value of $23.6 billion of the two studies should give investors a better idea of the economic potential of our total estimated resource,” Barron said in a news release Monday.

“The PFS takes our NORI-D project economics up the confidence curve and contains the declaration of mineral reserves — these are our first 50+ million tonnes with a potential commercially viable path to production, with more to follow as we advance our mine planning work,” Barron said.

The phased project development plan will target initial production from the Hidden Gem vessel, with an estimated $113 million of development capital expenditure each from TMC and Allseas.

The company said first production is targeted for the fourth quarter of 2027.