Q4 2021 TMC the metals company Inc Earnings Call

[music].

update conference call.

But update conference call joining us today are the metals company, Chairman and Chief Executive Officer, Jared bearing the metal company, Chief Financial Officer, Craig Suski, and Epsilon carbons managing director the Krumme Honda following their remarks, we'll open the call for your questions.

Joining us today are the Metals Company's Chairman and Chief Executive Officer, Jared Barron, the Metals Company's Chief Financial Officer, Craig Seske, and Epsilon Carbon's Managing Director, Vikram Handa. Following their remarks, we'll open the call for your questions.

Before we go further, I would like to turn the call over to CFO Craig Seske as he reads the company's Safe Harbor Statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements and information about the use of non-GAAP measures. Craig, please go ahead.

Before we go further I would like to turn the call over to CFO , Craig dusky as he reads the company's safe Harbor statement within the meaning of the private Securities Litigation Reform Act up 1995, but that provides important cautions regarding forward looking statements and information about it.

Use of non-GAAP measures Craig. Please go ahead.

Craig Seske: Thank you. And please note that during the call, certain statements made by the company will be forward looking and based on management's beliefs and assumptions from information available at this time.

Please note that during the call certain statements made by the company will be forward looking and based on management's beliefs and assumptions from information available at this time these statements.

Craig Seske: are subject to known and unknown risks and uncertainties, many of which may be beyond our control, including those set forth in our safe harbor provisions or forward-looking statements that can be found at the end of our fourth quarter 2021 corporate update press release. Such statements may also be found in our Form 10-K when it's available and other reports filed with the SEC, all that provide further detail of the risks related to our business.

They are subject to known and unknown risks and uncertainties, many of which maybe beyond our control, including those set forth in our safe Harbor provisions of forward looking statements can be found at the end of our fourth quarter 2021, corporate update press release.

Statements May also be found in our Form 10-K , when its available and other reports filed with the SEC. All it provides further detail about the risks related to our business. Additionally, please note that the company's actual results may differ materially from those anticipated and except as required by law. We undertake no obligation to update any forward looking statements are.

Craig Seske: Additionally, please note that the company's actual results may differ materially from those anticipated and, except as required by law, we undertake no obligation to update any forward-looking statements.

Craig Seske: Our remarks today may also include non-GAAP financial measures, including with respect to free cash flows. Additional details regarding these non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial measures, can be found in our slide deck being used with this call. And the slide deck is available on our website, investors.metals.co. I'll now turn it over to Jared Barron, the Metals Company Chairman and Chief Executive Officer. Jared, please go ahead.

Good evening also include non-GAAP financial measures, including with respect to free cash flows additional details regarding these non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial measures can be found in our slide deck being used with this tool and the slide deck is available on our website investors <unk> metals CEO .

I'll now turn it over to Jeremy Barrett metals company's chairman and Chief Executive Officer, Jerry. Please go ahead.

Jared Barron: Thank you Craig and good afternoon and thank you all for joining us today for our fourth quarter corporate update. You're welcome to follow along with our slide deck or as Craig mentioned you can also access it at investors.metals.co. Today we're going to take you through an update on strategic relationships.

Thank you, Greg and good afternoon, and thank you all for joining us today for our fourth quarter corporate update.

Welcome to follow along with our slide deck or as Greg mentioned.

You can also access to that investors don't metals don't cut today, we're going to take you through an update on strategic relationships.

Jared Barron: a discussion of recent market developments, our financial and project development highlights.

A discussion of recent market developments, our financial and project development highlights and expected upcoming milestones for the company.

Jared Barron: and expected upcoming milestones for the company. But we'll start with a quick reminder of the TNC value proposition.

We'll start with a quick reminder of the TMC value proposition we.

Jared Barron: We believe TMC's estimated resource of polymetallic nodules can really move the needle for battery metal supply. It's abundant. It's the largest estimated potential source of battery metals on the planet.

We believe TMC is estimated resource a poly metallic nodules can really move the needle for battery metal supply is abundant.

Largest estimated potential source of battery metals on the planet.

Jared Barron: We believe our portfolio alone has sufficient estimated in situ quantities of nickel, copper, cobalt, and manganese to electrify 280 million EVs, about the size of the entire U.S. passenger fleet. It's secure, nodules sit in international waters, and we are regulated by the International Seabed Authority, or the ISA, comprised of 167 member states.

We believe our portfolio alone has sufficient estimated in sushi quantities of nickel copper and cobalt and manganese to electrify 280 million Evs about the size of the entire U S. Passenger fleet, it's secure nodule sit in international waters.

We are regulated by the international Seabed authority will be Imsa comprised of 167 member states and the European Union.

Jared Barron: and the European Union. The ISA resumed in-person meetings in December after a nearly two-year hiatus due to COVID, and they are meeting again as we speak in Kingston, Jamaica, with a stated target of finalising the exploitation regime by July 9, 2023.

Say resumed in person meetings in December after a nearly two year hiatus due to COVID-19 and they are meeting again as we speak in jeans, and Jamaica with a stated target of finalizing the exploitation regime by July nine 2023.

Jared Barron: We expect our production costs to be low due to the high grades of four metals. On land, you would possibly need three different mines to obtain these metals and the grades are falling. Nodules contain high grades of four metals in a single resource.

We expect production cost to be low due to the high grades at full metals on land you would possibly need three different mines to obtain these metals and the grades are falling nodules contain high grades of full metals in a single resort, which could put us firmly in the bottom quartile of the C. One Nicole.

Jared Barron: which could put us firmly in the bottom portal of the C1 nickel cost curve.

Cost curves.

Jared Barron: At potential steady state production, we expect to be the second lowest cost producer of nickel in the world and lowest outside of Russia.

At potential steady state production, we expect to be the second lowest cost producer of nickel in the world and lowest outside of Russia.

Jared Barron: Importantly, we also expect to significantly compress ESG impacts compared to land-based mining.

Importantly, we also expect to significantly compressed ESG impacts compared to land based miners, we expect 70% to 99% reduction of lifecycle ESG impacts no child labor their social displacement nerdy forestation nerd poison poisonous hexavalent chromium, which was <unk>.

Jared Barron: We expect 70 to 99 percent reduction of life cycle ESG impact.

Jared Barron: no child labor, no social displacement, no deforestation, no poisonous hexavalent chromium, which was recently reported in communities near nickel mines in Indonesia.

<unk> reported and communities need nickel mines in Indonesia onshore.

Jared Barron: Onshore, our production is expected to generate near zero solid waste and zero tailings.

Onshore production is expected to generate nearly zero solid waste and zero tailings. We also expect to compress here two equivalent emissions by up to 90% and this is all using conventional technology.

Jared Barron: We also expect to compress CO2 equivalent emissions by up to 90 percent, and this is all using conventional technology, but we are pushing to do better than that.

We are pushing to do better than that and then finally, the recent rally in metal prices has led to a large increase in the expected NPV for Noah the.

Jared Barron: And then finally, the recent rally in metal prices has led to a large increase in the expected NPV for Nori D.

Jared Barron: the project, the first project we are developing, using current metal prices and nickel at $30,000 per ton, the estimated NPV for NORAD would be $22 billion. All other inputs

The project the best project, we are developing using current metal prices and nickel at $30000 per ton. The estimated PV for northern D would be $22 billion, while other inputs being equal.

Jared Barron: So we believe TNC is positioned at the intersection of three megatrends in the clean energy transition. At COP26 in Glasgow end of last year, the world decided to accelerate electrification, now targeting 100% zero emissions car sales by 2025 in major markets and by 2040 globally.

Yeah.

So we believe GNC is positioned at the intersection of three Mega trends in the clean energy transition at Cop 26 in Glasgow ended last year, the world decided to accelerate electrification now targeting 100% zero emissions car sales by 2025 and major markets in <unk>.

2040 globally.

Jared Barron: At this point in time, these ambitions appear to be divorced from the geological and geopolitical constraints of raw material supply chains.

At this point in time these ambitions appear to be divorced from the.

Geological and geopolitical constraints of raw material supply chains.

Jared Barron: Availability and price of metal supply continue to be a risk for the clean energy transition.

<unk> ability and price of metal supply continue to be a risk for the clean energy transition and.

Jared Barron: and reshoring supply chains of critical metals is now a top priority for many governments around the world. It took a few years for the world to realize how effective China has been in cornering the battery material supply chain and how hard it is to achieve mineral independence.

And re shoring supply chains is critical metals is now a top priority for many governments around the world.

It took a few years for the world to realize how effective China has been cornering the battery materials supply chain and how hard it is to achieve mineral independence. If youll country does not have sufficient domestic source of the REIT minerals and focus on the ESG continues to be a catch 22.

Jared Barron: if your country does not have a sufficient domestic source of the right mineral.

Jared Barron: And focus on the ESG continues to be a catch-22. We want to accelerate the clean energy transition, but we also want to end all destruction of nature, including from mining critical minerals needed for the clean energy transition.

We want to accelerate the clean energy transition, but we also want to and all destruction of nature, including from mining critical minerals needed for the clean energy transition.

Jared Barron: There are no zero impact critical metals but we believe TNC can offer much lower impact metals that would not be destroying anyone's backyard nor any rainforest.

There are no zero impact critical metals, but we believe TNC can offer a much lower impact metals that would not be destroying anyone's backyards minority rainforest.

Jared Barron: Few of us anticipated a war in Ukraine. The humanitarian crisis is overwhelming, and it's hard to talk about things like supply chains amidst death and suffering.

Fueled has anticipated.

Anticipated award in Ukraine, the humanitarian crisis is overwhelming and it's hard to talk about things like supply chain and <unk>.

<unk> death and suffering.

Jared Barron: But supply chain disruptions have real consequences. Russia controls roughly 20% of Class 1 nickel market, while the Chinese control most of nickel growth.

The supply chain disruptions have real consequences, Russia controls roughly 20% of class one nickel market.

The Chinese control most of nickel growth and fees around Russian supply coupled with the Chinese producers shortly nickel have caused chaos in the London metals exchange pushing nickel prices to all time highs in this type of volatility is unhelpful for the clean energy transition.

Jared Barron: and fears around Russian supply, coupled with the Chinese producers shorting nickel, have caused chaos on the London metals exchange, pushing nickel prices to all-time highs.

Jared Barron: And this type of volatility is unhelpful for the clean energy transition.

Jared Barron: At TMC we are working to become the lowest, largest, lowest cost and lowest ESG impact source of class 1 nickel supply outside of Russia.

At TMC, we are working to become the lowest largest lowest cost and lowest ESG impact. So also the class one nickel supply outside of Russia Nikola.

Jared Barron: Nickel is a key metal for us, representing about 50% of our expected future revenues at current metal prices.

<unk> is a key metal for us representing about 50% of all expected future revenues at current metal prices and as you can see on the left hand side of this page our estimated resource is significantly larger than other known undeveloped nickel projects earlier this year mining dot com.

Jared Barron: And as you can see on the left-hand side of this page, our estimated resource is significantly larger than other known undeveloped nickel projects.

Jared Barron: Earlier this year, Mining.com ranked just our Nori D asset as the largest undeveloped nickel project on the planet.

Ranked just down nor a D asset is the largest undeveloped nickel project on the planet.

Jared Barron: Our strategy has always been to develop the polymetallic nodular resource through partnerships, both because this potentially allows us to move faster and because we expect that this will allow us to get into production in a capital-like manner. And the two strategic developments we announced last week are important steps in that direction.

Our strategy has always been to develop a poly metallic nausea resource through partnerships.

Because this potentially allows us to move faster and because we expect that this will allow us to get into production in a capital light manner.

And the two strategic developments, we announced last week are important steps in that direction.

Jared Barron: Project Zero is our first small-scale commercial production project expected to collect and process

<unk> zero is our first small scale commercial production project expected to collect and process.

Jared Barron: around 1.3 million wet tons of nodules from the Noori D area. And as a result of the two strategic developments with all seas and epsilon carbon, we expect to reduce the share of pre-production costs carried by TMC from US $193 million to approximately $55 million.

Around one 3 million wet tons of nodules from the northern area and as a result of the two strategic development with all fees and Epsilon carbon we expect to reduce the share of preproduction costs carried by TMC from U S $193 million to.

<unk> $55 million.

Jared Barron: Onshore, we announced a non-binding term sheet with our partner Allseas.

Onshore, we announced a non binding term sheet with our partner oilseeds it.

Jared Barron: It lays out the potential framework and commercial terms for upgrading the pilot collection system into a project zero system and operating it in NORAD area.

Lays out the potential framework and commercial terms for upgrading the pilot collection system into a project zero system and operating in North area. The.

Jared Barron: The pilot collection system you see on the image consists of surface production vessel, the hidden gem, the collector vehicle used to collect nodules on the seafloor, the launch and recovery system to deploy the collector and airlift riser to move nodules from the collector to the vessel.

The pilot collection system you see on the image consists of surface production vessel the hidden gem.

The collective vehicle used to collect nodules on the sea floor, the launch and recovery system to deploy the collector in airlift riser to move nodules from the collector to the vessel all fees is currently in the middle of the test program and we expect the full system to do a multi month pilot trial on the <unk>.

Jared Barron: ALSEAS is currently in the middle of a test program, and we expect the full system to do a multi-month pilot trial on the Norrie D area in Q3 this year.

R&D area or in Q3 this year.

Jared Barron: And after completing these pilot trials, Altiz intends to upgrade this pilot system into our small-scale production system.

And after completing these pilot trials <unk> intends to upgrade this pilot system into our small scale production system. The.

Jared Barron: The total costs to get into production are currently estimated at less than $110 million. And all seas have agreed to finance these costs with TMC's subsidiary, Nori, reimbursing all seas 50% of these costs between March 31, 2023, and production start, which is expected in Q4, 2024, subject to Nori securing an ISA exploitation contract.

The total cost to get into production and are currently estimated at less than $110 million and <unk> had agreed to finance these costs with TMC subsidiary Norrie Reimbursing <unk>, 60% of these costs between March 31, 2023 and.

Production start, which you expected in Q4, 2024 subject to norrie, securing and I say exploitation contract and.

Jared Barron: And once in production and subject to all fees, achieving certain production targets, Nori expects to pay all fees a nodule collection and trans-shipment fee that will cover all fees operating expenses.

And once in production and subject to achieving certain production targets norrie expects to payroll sees a nodule collection and trend shipping fee that will cover all fees operating expenses all.

Jared Barron: Allsea's share of pre-production costs and a fee linked to the value of contained metals. It is currently estimated at around $165 per wet ton of nodules in the first year of potential production and expected to be reduced by over 20% in the following years as Allsea scales production up to 1.3 million tons of wet nodules.

<unk> share of pre production costs and a fee linked to the value of contained metals. It is currently estimated at around $165 per wet tonne of nodules in the first year of potential production and expected to be reduced by over 20% in the following years as all fees.

<unk> production up to one 3 million tonnes of wet nodules.

Jared Barron: Assuming 24% moisture content, this would equate to around $217 of cost per dry ton.

Achieving 24% moisture content this would equate to around $217 of cost per dry tonne and.

Jared Barron: And on the revenue side, at current metal prices, our internal estimates suggest that Project Zero would generate revenue of around $700 per Dricom based on two products.

And on the revenue side at current metal prices, our internal estimates suggest that project zero would generate revenue of around $700 per dry Tom based on two products.

Jared Barron: our nickel copper mass and our manganese silicate material. We intend to further detail and revise the cost estimates in the definitive agreement we intend to enter by December 31st this year.

Nickel copper mass and our manganese silicate materials, we intend to further detail and revised cost estimates in the definitive agreement we intend to enter by December 31. This year.

Jared Barron: And we also expect to see the per ton cost to further decrease from these estimates if all sea scales production capacity of its surface production vessel by adding multiple collectors on the sea floor.

And we also expect to see the per ton costs to further decrease from these estimates at all see scales production capacity of its surface production vessel by adding multiple collectors on the sea floor.

Jared Barron: Here you can see additional images of the pilot collector being lowered into the water and driving on the seafloor of the North Atlantic earlier this month.

You can see additional images of the pilot collected being lowered into the water and driving on the sequel of the North Atlantic earlier. This month. We're also excited to report that all six <unk> intend to investigate acquiring the second production vessel similar to the hidden gem Samsung 10000 that is.

Jared Barron: We're also excited to report that Allseas and Nori intend to investigate acquiring a second production vessel similar to the Hidden Gem, a Samsung 10,000, that is expected to be engineered to a higher production rate of 3 million tons of wet nodules.

As expected to the engineered to a higher production rate of 3 million tons of wet nodules, a higher production rate system is expected to reduce the per ton module collection cost significantly compared to the first production system.

Jared Barron: A higher production rate system is expected to reduce the per tonne nodule collection cost significantly compared to the first production system.

Speaker Change: The exciting development onshore is that we have signed a non-binding MOU with Epsilon Carbon to do a pre-feasibility study for a renewables-powered Project Zero plant in India that could process 1.3 million tons of wet modules per year collected using AllSea's Project Zero system operating on Nori-D. I've invited Vikram Handa, Managing Director of Epsilon Carbon, to give you a bit more background on the company.

The exciting development onshore is that we have signed a non binding Mou with epsilon caused them to do a pre feasibility study for our renewables pallet project zero plant in India.

Good process, one 3 million tons of what nodules per year collected using Ocs project system operating on Normandy, I've invited <unk> managing director of that strong carbon to give you a bit more background on the company.

Vikram Handa: Thank you very much. It's exciting to be here. Exxon Carbon started in 2010 with an idea that we could turn coal tar a waste stream from steelmaking into high quality carbon products.

Thank you very much or other and it's exciting to be here excellent carbon started in 2010 with an idea that we could turn coulter a waste stream from steelmaking into high quality carbon products. Since then we have built a good business around the long term exclusive raw material supply contract with DSW steel, which.

Vikram Handa: Since then, we have built a good business around the long-term exclusive raw material supply contract with JSW Steel, which happens to be India's largest steel manufacturer. We've been producing a wide range of carbon-based products for some of India's biggest names in aluminum, carbon black, tires, and other specialty products. We have done so with a low carbon footprint because we use waste gases to produce mesocoke and more than 80 percent renewable power for thermal purification.

It happens to be India's largest steel manufacturer, we are introducing a wide range of carbon based products.

India's biggest aluminum carbon black tires, and other specialty products, we have done so with a low carbon footprint, because we use <unk> to produce Mexico and more than 80% renewable power, but then look verification.

Vikram Handa: About five years ago, we decided to expand into battery business and started Epsilon Advanced Materials to focus on that.

About five years ago, we decided to expand into battery business and started epsilon advancement deals to focus on that.

Vikram Handa: The annual precursor material was a logical place for us to start. But we had ambitions to expand into capital materials as well. On the animal material side we now have the first plant in India producing synthetic graphite and we're building a plant in Finland to make natural graphite as well.

Precursor materials, but the logical place for us to start, but we had ambitions to expand into cathode materials as well.

And on the deal side, we have now have the first plant in India, producing synthetic graphite and we're building a plant in Finland to make natural growth rate as well.

Vikram Handa: In cathode materials, we are working on making a precursor for the LFP battery chemistry made from the steel plant waste stream. And now with the MOU we have signed with TMC, we are thrilled at the prospect of processing nodules and producing nickel matte as well that could cater to NMC and other nickel-rich battery cathode chemistries.

And Gaslog with deals we are working on making a precursor for LSP battery chemistry made from the steel plant waste stream.

Now with the Mou, we signed with P&C, we're thrilled at the prospect of processing <unk> introducing.

Nickel mat as well that could cater to NMC and other nickel rich cathode chemistries.

Vikram Handa: We have built our entire carbon product business on unconventional raw material for waste stream from the steel plant and then invested our R&D resources to produce synthetic graphite.

We have built our entire carbon products business.

Unconventional raw material.

It came from the Steve Bank, and then invested our R&D resources to produce synthetic graphite as.

Vikram Handa: As a company, we thrive on these types of challenges, doing things that have not been done before. Polymetallic nodule resource struck as a game-changing opportunity to tap another unconventional resource with several intrinsic properties that could potentially allow us to develop a cathode precursor material business with a much lower environmental and social impact. We have already started on the pre-feasibility report.

As a company we thrive on these types of challenges three things that had not been done before following metallic module resource Chuck.

Game changing opportunity.

Another unconventional resource with several intrinsic properties that could potentially allow us to develop a cathode precursor materials business with a much lower environmental and social impact we have already started on the pre feasibility report.

Vikram Handa: subject to us reaching binding head of terms in the next couple of months with TMC. We look forward to engineering, permitting, financing, building, and operating a Project Zero plant in India. It is a relatively...

Subject to us reaching binding heads of terms in the next couple of months if P&C, we look forward.

Two engineering permitting financing building and operating a project plant in India. It is a relatively.

Vikram Handa: small scale plant. But we believe that the scale of GMC's resource portfolio has the potential to turn India into a significant supply of critical minerals for battery and steel industry as well.

Small scale plant, but we believe that the scale of Pmt's resource portfolio has the potential to turn India into a significant supply of critical minerals for battery and steel industry as well.

Vikram Handa: So we're looking forward to working together and building this project in the near future.

So we're looking forward to working together in building this project in the near future.

Thank you Victor.

Vikram Handa: I'd add here that for the last three years, we have engaged with many potential onshore partners and visited many plants around the world. Metallurgical processing tends to be a rather slow-changing, capital-intensive business, usually run by large, established companies, not necessarily known for their innovation and entrepreneurial spirit.

I'd add here the last three years, we have engaged with many potential onshore apartments and visited many plants around the world metallurgical processing tends to be a rather slow changing capital intensive business, usually run by large established companies not necessarily known for.

For their innovation and entrepreneurial spirit and.

Vikram Handa: And having recently spent some time in India with Vikram and his team visiting their plant and potential sites for a Project Zero plant, I can say we were very impressed. The operating philosophy of putting every bit of resource to work and nothing to waste, attention to detail, focus on people and the environment, it felt like we found a kindred spirit.

Having recently spent some time in India, which vikram and his team visiting their plants and potential sites for project Zero plan I can say we were very impressed the operating philosophy is putting every bit of results to work and nothing to waste attention to detail focus on people and the environment.

It felt like we found a kindred spirit and at a strategic level I could not have imagined the benefit and Epsilon carbon we found a partner who is already in the battery materials and backward integrated with the steel industry.

Vikram Handa: And at a strategic level, I could not have imagined a better fit. In Epsilon Carbon, we found a partner who was already in the battery materials and backward integrated with the steel industry. The two target industries.

The two target industries for our products.

Speaker Change: Thank you, Gerard. We have certainly enjoyed working with your technical team over the last few months as well, the work done by the TMC team, including a zero solid waste flow sheet.

Thank you Joe.

We've certainly enjoyed working with your technical team over the last few months as well the work done by the P&C team, including zero solid we explore cheat and pilot planned program results have given us a good head start as we aim to deliver a project feasibility report project zero and you can get by year end I think it's important to understand that after China.

Speaker Change: and the pilot plan program results have given us a good head start as we aim to deliver a project feasibility report for Project Zero in India by year-end. I think it's important to understand that after China, India is the world's largest steel manufacturer and is planning to triple its production to 300 million tons by 2030. This expansion will also require a lot of manganese ore, most of which India has to import today.

India is the world's largest steel manufacturer and is planning to triple its production to the 300 million tons by 2030. This expansion will also require a lot of manganese ore most of which India has been important to date.

Speaker Change: Project Zero Plants is expected to produce a sizable volume of a manganese silicate product that could be used in the production of

Logic zero plant is expected to produce a sizable volume of imagines silicate product that could be used in the production of silicon silicon manganese alloys, instead of manganese ore and.

Speaker Change: silicon silico manganese alloys instead of manganese ore, and appears to have several advantages, including reducing the CO2 emissions, lowering downstream power consumption, and eliminating the need for blending. Over the last month, my team has been meeting with some of India's largest manganese alloy producers, and have secured initial expressions of interest in the manganese product.

Appears to have several advantages, including including reducing the cotwo emissions lowering downstream power consumption and eliminating the need for lending over the last months. My team has been meeting with some of India's largest making you the alloy producers.

Secured initial expressions of interest into making this product DNP has shipped us making these samples and we look forward to the next stage of testing with these customers and taking the interest ahead.

Speaker Change: TMC has shipped us the Manganese samples and we look forward to the next stage of testing with these customers and taking their interest ahead.

Speaker Change: And India is, of course, home to 20%

And in the areas of course home to 20%.

Speaker Change: of the world's population and has a strong development-led demand for raw materials. And according to UNCLOS, polymetallic nodules in international waters is a common heritage resource. And personally, I believe that putting this resource to work in a country with the world's second largest population that needs a lot of steel for its continued development is putting such a resource to good use.

The world's population and has a strong development led demand for raw materials.

And according to one cost poly metallic nodules in international waters is a common heritage residuals and personally I believe that putting this resource to work in a country with the world's second largest population that needs a lot of steel for its continued development is putting such a resource to good use.

Speaker Change: I'd like to thank Vikram for taking the time to join us today, and he has kindly agreed to stay behind for any questions at the end of this session. So, in closing here, offshore, our partner, Allseas, has enabled us to move at a near impossible speed in capital efficiency. And onshore, we hope that our relationship with Vikram's team will allow us to do the same.

I'd like to thank <expletive> groups are taking the time to join US today and he has kindly agreed to stay this time for any questions at the end of this session. So in closing year offshore our partner all fees has enabled us to move to at or near impossible speed in capital efficiency and onshore we hope that our relationship with Vikram.

Jean will allow us to do the same.

Speaker Change: In terms of governance, we announced the appointment of Kathleen McAllister to our board in February . Kathleen is a seasoned CEO , CFO , and board director who has held diverse leadership roles in global capital-intensive companies in the energy value chain, including Black Hills Corporation, LNG Partners, and TransOcean Partners. Kathleen is expected to step into the role of Audit Committee Chair in April .

In terms of governance, we announced the appointment of Kathleen Mcallister to onboard in February Kathleen is a seasoned CEO CFO and board director, who has held diverse leadership roles in global capital intensive companies in the energy value chain, including <unk>.

Hill's cooperation LNG partners and Transocean Partners' Kathleen is expected to step into the role of audit Committee Chair in April and.

Speaker Change: And Kathleen's appointment brings gender parity to 50-50 on TMC's board. Just 3% of S&P 500 companies' boards are comprised of 50% or more women today. So TMC is joining a small but growing number of companies delivering on gender parity goals.

And kathleen's appointment brings.

Our agenda parity to 50 50.

On Tncs Board.

Just 3% of S&P 500 companies boards comprised of 50% or more women today. So TNC is joining a small but growing number of companies delivering on gender parity goals.

Speaker Change: Under the nickel market, we've been talking about impending supply issues for nickel for a while, but the events of the last several weeks have elevated the urgency of this topic.

Under the nickel market, we've been talking about in pending supply issues for nickel for a while.

The events of the last several weeks of elevated the urgency of this topic.

Speaker Change: Since the beginning of Q4 2021, nickel prices have more than doubled, but not in a linear fashion. Nickel prices started Q4 21 at around $18,000 a ton, steadily rising higher, then spiking as high as $100,000 a ton before the LME stepped in and stopped nickel trading for more than a week.

Since the beginning of Q4 2021 nickel prices have more than doubled but not in a linear fashion nickel prices started Q4 'twenty one at around $18000, a tonne steadily rising higher than spiking as high as $100 a ton before the LMA stepped in and stopped nickel trading for more.

Than a week and nickel prices declined significantly as trading reopen and eventually dropped below 30000 per ton, but then jumped in the last couple of days to over $37000 per ton before the <unk> halted trading yet again and.

Speaker Change: Nickel prices declined significantly as trading reopened and eventually dropped below $30,000 per tonne, but then jumped in the last couple of days to over $37,000 per tonne before the L&E halted trading yet again. Higher nickel prices are a major tailwind for our project economics, which Craig will discuss later.

And higher nickel prices are a major tailwind for our project economics, which Craig will discuss later.

Speaker Change: the nickel price rally is still playing catch-up to recent rallies in cobalt and lithium. And if you were to run the same chart since the beginning of 2021, you'd see that cobalt prices are up 350% and lithium carbonate prices are up 600% in that time.

Nicole price rally is still playing catch up to recent rallies in cobalt and lithium.

And if you were to run the same shot since the beginning of 2021, you can see that cobalt prices are up 350% and lithium carbonate prices are up 600% in that time.

Speaker Change: In February , Benchmark Mineral Intelligence reported that high lithium prices pushed up the cost of LFP cells above those of high nickel cells on a dollar per kilowatt hour basis for the first time in a decade.

In February benchmark mineral intelligence reported that high lithium prices pushed up the cost develop T cells above those of high nickel sells on a dollar per kilowatt hour basis for the first time in a decade.

Speaker Change: And this analysis has been a moving target due to the nickel rollercoaster this month but it underscores the fact that there is no safe haven for automakers when it comes to battery materials. They need to lock up abundant, secure and low-impact supplies of nickel, cobalt, copper and manganese. Manganese may rapidly gain in importance.

This analysis has been a moving target due to the nickel roller coaster this month, but it underscores. The fact that there is no safe Haven for automakers when it comes to battery materials, they need to lock up abundant secure and low impact supplies of nickel cobalt copper and manganese.

Manganese may rapidly gain in importance.

Speaker Change: Elon Musk stated this week in Berlin that there's an interesting potential for manganese to Tesla battery cathodes, and TMC expects to be a top four global producer of manganese through Nori D alone, and that's just 22% of our total estimated resource.

Elon Musk stated this week in Berlin that there's an interesting potential for manganese.

Tesla battery cathodes, and TMC expects to be a top four global producer of manganese through northern D alone and Thats, just 22% of our total estimated resource.

Speaker Change: The metal intensity of the clean energy transition is now reasonably well understood.

The metal intensity of the clean energy transition is now reasonably well understood.

Speaker Change: there simply is no energy transition without exponential growth in metal supply. And supply of some base metals needs to grow six times by 2040 to reach a goal of net zero by 2050, according to the International Energy Agency.

There simply is no energy transition without exponential growth in metal supply and supply of some base metals needs to grow six times by 2040 to reach our goal of net zero by 2050. According to the International Energy Agency.

Speaker Change: It's estimated that roughly 30 million EVs per year globally could be left unbuilt due to battery material shortages and roughly half of what might otherwise be sold without the constraint in metals. Some research analysts are now publicly doubting the medium-term EV sales forecast from automakers due to the recent nickel-pickle.

It's estimated that roughly 30 million evs per year globally could be lift unbilled due to battery materials shortages and roughly half of what might otherwise be sold without the constraints in metals and some research analysts are now publicly doubting the medium term EV sales forecast from order in.

<unk> due to the recent Nicole pickle.

Speaker Change: So, where will battery metals for gigafactories come from? Let's take the US as an example of this global conundrum.

So where will battery metals for Giga factories come from let's take the U S. As an example of this global conundrum.

Speaker Change: The U.S. currently has zero or de minimis production of nickel, manganese, and cobalt, the N, M, and C in an MMC battery cathode. It takes on average about 16 years to go from discovery to production for a new mine, but many will never get permitted. Permits have already been denied for several proposed copper and nickel mines in the U.S.

The U S. Currently has zero or de Minimis production of nickel manganese cobalt.

<unk> NMC Internet.

And NMC and in NMC battery cathode. It takes on average about 16 years to go from discovery to production for a new mine.

Many will never get permitted permits have already been benign for several proposed copper and nickel mines in the U S.

Speaker Change: So rather than looking for new deposits in people's backyards, we're seeing growing support to look far offshore instead.

So rather than looking for new deposits and People's Backyards, we're seeing growing support to look far off offshore instead.

Speaker Change: We hold exploration contracts in the Clarion-Clifton zone, the colored areas on this page.

We hold exploration contracts and declaring inflicted in zone the colored areas on this page.

Speaker Change: And in early 2021, AMC consultants issued SEC-compliant technical resource statements on the Nori and Tomo areas, confirming a total estimated resource of 1.6 billion wet tons of nodules with an in-situ resource of nickel, copper, cobalt and manganese.

And in early 2021, AMC consultants issued SEC compliant technical resource statements on the Norrie and Tamil areas confirming a total estimated resource of one 6 billion wet tons of nodules with an in situ resource of nickel copper and cobalt and manganese.

<unk>.

Speaker Change: equivalent to the requirements of 280 million electric vehicle batteries.

Equivalent to their requirements of 280 million electric vehicle batteries.

Speaker Change: Importantly, the CCZ area under protection has increased to 43% after the ISA set aside three additional blocks in December to make sure all habitat types that could be impacted by nodule collection are represented.

Fortunately the Ccs Zed area under protection has increased to 43%.

After the <unk> set aside three additional blocks in December to make sure. All habitat types that could be impacted by nodule collection are represented.

Speaker Change: the global ambition to protect 30% of the oceans by 2030. So CCZ is already ahead of the curve here.

The global ambition to protect 30% of the oceans by 2030. So <unk> is already ahead of the curve here.

Speaker Change: And leaving large areas untouched is a strong measure to protect biodiversity. The seafloor in the CCZ is an abyssal desert that represents the most common area on the planet. Microbes account for over 70% of life, as measured by biomass, and there is 1,500 times less life per square meter in the abyssal desert than in the biodiverse, carbon-story rainforests of Indonesia.

And leaving large areas untouched is a strong measure to protect biodiversity.

The sea floor in the Cc Jed is an imbecile desert that represents the most common area on the planet.

Microbes account through the 70% of life as measured by biomass and there is one 500 times less life per square meter in the abyssal desert.

Then in the buyer this carbon story rainforest of Indonesia.

Speaker Change: And most of nickel growth is expected to come from these rainforests, with Volkswagen China just announcing they plan to get 120,000 tons of nickel from Indonesia by partnering with China's Xinjiang.

And most of the <unk> growth is expected to come from these rainforest with Volkswagen China, just announcing they plan to get 120000 tonnes of nickel from Indonesia by Cotton with China is seeing Shaun.

Speaker Change: I'm curious what WWF Germany, Greenpeace or VW customers had to say about this announcement.

I'm curious, what WWF, Germany green peaceful VW customers have to say about this announcement.

Speaker Change: And if you look at the lower right yellow box on this map, that is NORI-D, our first project.

And if you look at the lower right yellow box on this map that is no R&D our first project.

Speaker Change: And Nori D is estimated to contain 356 million tons of wet nodules, representing 22% of TNC's total...

<unk> is estimated to contain 356 million tonnes of wet nodules, representing 22% of Tmc's total.

Speaker Change: Thank you. And please note that during the call certain statements made by the company

Thank you and please note that during the call certain statements made by the Covid.

Speaker Change: Sorry everybody, we're having technical difficulties. Please stay on the line.

Alright, everybody, we're having technical difficulties please stay online.

Ladies and gentlemen, please remain holding again, ladies and gentlemen, please remain holding.

Speaker Change: Ladies and gentlemen, please remain holding. Again, ladies and gentlemen, please remain holding.

Okay.

Speaker Change: I think we'll back up, Jared, if you want to begin again. Apologies for the inconvenience there, everybody, but ready to start again.

I think we're back up Jared if you want to begin again apologies for the inconvenience there everybody operating to start again.

Okay apologies everyone.

Free.

Starting on slide four.

Slide 18.

So the support should nodules.

Speaker Change: So the support for nodules has been growing amongst the world's largest economies, some of the most.

Has it been growing amongst the world's largest economy to some of the most.

Credible voices.

Jared Barron: India has an exploration contract, and Prime Minister Modi is investing $530 million over the next five years in the country's deep ocean mission, including funding for an integrated nodular mining system.

Hi.

<unk>, India has an exploration contract and Prime Minister Modi is investing $530 million over the next five years in the country's deep Ocean mission, including funding for an integrated module mining system.

Jared Barron: And France also has an exploration contract, and President Macron is investing 300 million euros in deep sea nodule exploration as a path to mineral independence and re-industrialization of his country.

And France also has an exploration contract and President Macron is investing 300 million euros in deep sea nodule exploration as a path to mineral independents and reindustrialization of his country.

Jared Barron: Russia controls two exploration contracts and China controls three exploration contracts, the same number as TNC. And these exploration contracts are strategic holdings with major national security implications.

Russia controls to exploration contracts and China controls three exploration contracts the same number as GNC and these exploration contracts, our strategic holdings with with major National security implications.

On the top of this page you can read some of the positive statements made by some respected agencies on the topic of deep sea minerals and those opposing deep sea mining claim that the scientific inquiry on this topic is brand new and knowledge is insufficient.

Jared Barron: On the top of this page, you can read some of the positive statements made by some respected agencies on the topic of deep sea minerals. And those opposing deep sea mining claim that the scientific inquiry on this topic is brand new and knowledge is insufficient.

Jared Barron: When it comes to CCZ nodules, we respectfully and strongly disagree. The environmental impacts of nodule collection have been studied for the last 50 years, including a study by NOAA from 1975 to 1980.

When it comes to C. C Z nodules, we respectfully and strongly disagree the environmental impacts of nodule collection have been studied for the last 50 years.

<unk> Ah study by Noah from $19 75 to 1980.

Jared Barron: The findings of NOAA's Deep Ocean Mining Environmental Studies, or DERMS, was reported to the U.S. Congress in 1995.

Findings of Noah deep Ocean mining environmental studies or Dun's was reported to the U S. Congress in 1995, stating that the <unk> project has basically eliminated virtually all other environmental concerns raised about D C mining, except the collective set.

Jared Barron: stating that the Dones project has basically eliminated virtually all other environmental concerns raised about deep sea mining, except the collective sediment plume issue that required further study.

<unk> plan issue that required for the study now.

Jared Barron: Now much progress has been made on plumes since then.

And how much progress is being made on Putin since then.

Jared Barron: Since 2018, we and our partners have undertaken the most intensive deep sea exploration and environmental baseline data collection effort in history, completing 14 campaigns totaling 450 days at sea, while collecting nearly 1,000 terabytes of data.

Since 2018, we and our partners have undertaken the most intensive deep sea exploration and environmental baseline data collection effort in history, completing 14 campaigns totaling 450 days at sea, while collecting nerdy 1000 terabytes.

Data.

Speaker Change: Senator Lisa Murkowski, a centrist voice in the U.S. Senate with a long track record on critical mineral issues, wrote a letter in February urging the Department of Energy to consider new abundant sources of supply like polymetallic nodules.

Senator Lisa Makowski, a centrist voice in the U S Senate with a long track record on critical mineral issues wrote a letter in February urging the department of energy to consider new abundant sources of supply like poly metallic nodules, which can offer a pathway to mineral security for the U S. In <unk>.

Speaker Change: which can offer a pathway to mineral security for the U.S.

Speaker Change: In February , 17 retired generals, admirals, and officers across four branches of the military wrote to the Pentagon asking that they consider responsible development of polymetallic dongels as a potential game changer for U.S. critical mineral supply lines.

Every 17 retired generals admirals and officers across four branches of the military wrote to the Pentagon asking that they consider responsible development of poly metallic dongles as a potential game changer for U S critical minerals supply lines.

Speaker Change: We're also seeing a more nuanced treatment of the nodule solution in the media. Jim Conker from Forbes called nodules much, much less impactful than any land operation and the most optimal method for getting these critical metals between now and 2050.

We're also seeing a more nuanced treatment of the nodule solution in the media.

Jimmy Congress from Forbes called modules much much less impactful than any land operation in the most optimal method for getting these critical metals between now and 2015.

Speaker Change: Stephen Brown, an expert on Indonesian nickel operations, called out nodules as the only genuine alternative to rain forest nickel.

David Brown, an expert on Indonesian nickel operations called out modules as the only genuine alternative to rainforest sickle.

Speaker Change: The awareness of the environmental impacts of Indonesian nickel is growing. A Guardian investigation into nickel mining in Indonesia.

The awareness of the environmental impacts of Indonesian nickel is growing.

<unk> investigation into nickel mining in Indonesia discovered evidence of poisonous hexavalent chromium contamination in the drinking water near one of Indonesia's largest nickel mines, the same cancer, causing chemical made famous by the Erin Brockovich story in film.

Speaker Change: discovered evidence of poisonous hexavalent chromium contamination in the drinking water near one of Indonesia's largest nickel mines.

Speaker Change: The same cancer-causing chemical made famous by the Erin Brockovich story in films.

Speaker Change: The metals for the clean energy transition need to come from somewhere. We believe that an unbiased, science-based assessment of life cycle ESG impacts would favor nodules over the alternative.

The metals for the clean energy transition need to come from somewhere.

We believe that an unbiased science based assessment of lifecycle ESG impacts would say the modules over the alternatives.

Speaker Change: And life cycle studies published in peer-reviewed journals demonstrate that getting nickel from polymetallic nodules significantly reduces the environmental impact.

And lifecycle studies published in peer reviewed journals demonstrate that getting nickel from poly metallic nodules significantly reduces the environmental impacts compared to getting the same amount of metal from land based mining.

Speaker Change: compared to getting the same amount of metal from land-based mining.

Speaker Change: Carbon emissions are reduced by more than 90% compared to nickel-pig iron.

Carbon emissions have reduced by more than 19% compared to nickel pig iron.

Speaker Change: water usage is reduced significantly and solid processing waste is reduced to nearly zero and no tailings are produced.

Water usage has reduced significantly and solid processing waste is reduced to nearly zero and no tailings are produced.

Speaker Change: Finally, as there is no plant life on the seafloor of the CCZ and no mechanism to release carbon into the atmosphere from nodule collection, nodules represent a 90% reduction or more in terms of carbon sinks at risk compared to both nickel sulfides and nickel laterites.

Finally, as there is no plant life on the sea floor of the Ccs added no mechanism to release carbon into the atmosphere from Nacho collection nodules represent a 90% reduction or more in terms of carbon sinks at risk compared to the nickel sulphide nickel laterites.

But sometimes.

Speaker Change: Seeing the operations is more impactful than seeing the impact.

The operation is more impactful than seeing the impact numbers.

Speaker Change: This clip is from a collective test performed in the CCZ by another ISA contractor, GSR, a subsidiary of a Belgian marine engineering group, DEME.

This clip is from our collective test performed in the <unk> by another I S. A contractor GSR a subsidiary of the Belgian Marine Engineering Group Dene.

Speaker Change: Conceptually, we have taken a similar approach to collection. We take advantage of the Coanda effect, the propensity of a fluid to follow and stay attached to a convex surface. And this allows us to direct a water jet in parallel with the sea floor to gently dislodge nodules and then channel the stream with nodules inside the collector along the convex shape.

Conceptually we have taken a similar approach to collection, we take advantage of the Columbia or affect the propensity of the fluid to follow and stay attached to a convex surface and this allows us to direct our waterjet in parallel with the sea floor to gently dislodge nodules and then channel the stream.

With modules inside the collector along the combat shape.

Speaker Change: Even I was struck by the footage from GSR's collector tests and wanted to share it with you so you can see the extent of the impact on the seafloor with your own eyes.

Even I was struck by the footage from GSI was collected tests and wanted to share. It with you. So you can see the extent of the impact on the seafloor with your own eyes.

Speaker Change: is in the middle of the test program of our pilot collector now, and hopefully I'll be able to share with you similar footage by the end of the year. And here's what the test area looked like afterwards.

<unk> is in the middle of the test program of our pilot collected now and hopefully I'll be able to share with you similar footage by the end of the year.

And here's what the test area looked like afterwards, you can see the tracks on the seafloor, but I invite you to mentally compare these tracks on the Stifel. Two images of top down rainforest mining waste coloring rivers.

Speaker Change: You can see the tracks on the seafloor, but I invite you to mentally compare these tracks on the seafloor to images of cut-down rainforests, mining waste, coloring rivers.

Okay.

Speaker Change: On the plumes, essentially the seafloor mud disturbed by the collector

On the <unk> essentially the seafloor not disturbed by the collector it as being a major concern raised by Actavis, who speculated it could travel for hundreds of thousands of miles and stay suspended.

Speaker Change: seen a major concern raised by activists who speculated it could travel for hundreds or thousands of miles and stay suspended. Well last year we had several pollutant studies coming out from universities like MIT and field tests by other contractors like GSR and BGR and our own studies.

Last year, we had several <unk> studies coming out from our.

Universities Black Knight and.

In field tests by other contractors like GSR NV, Jr, and Alan studies, and so far the takeaway is that the seed flow plume generally only rise as five to six meters above the seafloor and most of it resettled within hours to days and mostly in the.

Speaker Change: And so far, the takeaway is that the seafloor plume generally only rises five to six meters above the seafloor, and most of it resettles within hours to days, and mostly in the test area.

Test area.

Okay.

Speaker Change: The cornerstone of the environmental and social impact assessment is collecting baseline data on the environment. We need to understand the pre-impact state so we can compare it to what happens after nodule collection.

The cornerstone of the environmental and social impact assessment is collecting baseline data on the environment, we need to understand the pre impact states. So we can compare it to what happens after Nacho collection and while we started doing environmental data collection campaign. Several years ago. This has been a record.

Speaker Change: And while we started doing environmental data collection campaigns several years ago, this has been a record year for us.

<unk> for us with five safe and successful campaigns at a 170 days spent etsy throughout the year.

Speaker Change: with five safe and successful campaigns and 170 days spent at sea throughout the year.

Speaker Change: And as I noted earlier, since 2018, we have successfully completed 14 campaigns totaling 450 days at sea while collecting nearly 1,000 terabytes.

And as I noted earlier since 2018, we have successfully completed 14 campaigns totaling 450 days at sea, while collecting nearly 1000 terabytes of data.

Speaker Change: And on shore we have developed a low risk flow sheet with the help of Hatch and we now demonstrated that we can turn these nodules into valuable metal products.

And onshore we have developed a low risk associated with the help of patch and we.

Now demonstrated that we can turn these nodules into valuable metal products.

Speaker Change: First, our pilot plant program turned nodules into a manganese silicate product that can go directly into manganese alloys.

First our pilot plant program turned modules into our manganese silicate product that can go directly into manganese alloy production in a nickel copper cobalt alloy and intermediate product that can be used as feedstock in some of the existing smelting and refining operations.

Speaker Change: production and a nickel-copper-cobalt alloy, an intermediate product that can be used as feedstock in some of the existing smelting and refining operations. Here is what the alloy looks like.

Here is what the ally it looks like.

Realized that I hadn't seen them like camera background.

Okay.

Speaker Change: And we further refine this into.

And we further refine this into.

Matt we're trying.

Of my hand with.

Speaker Change: We're continuing our bench scale work to refine the nickel-copper-cobalt maps into nickel sulfate, cobalt sulfate, and copper cathode.

We're continuing our bench scale work to refine the nickel copper and cobalt maps into nickel sulphate cobalt sulphate copper cathode.

Speaker Change: But we're finding that potential customers are quite interested in the matte material. And the payables on the matte material could be 85% to 90% of L&E prices for those metals. And selling the matte material would mean that we could skip the refining step entirely, saving $2 billion from the Project 1.

We're finding that potential customers are quite interested in are not material and the payables on the mat material could be 85% to 90% of LNG prices for those metals and selling that material would mean that we could skip the refining step in Thailand, saving 2 billion from.

The project one Capex Bill.

We are regulated by the international seabed authority in as we speak the ISI session is in progress in Kingston, Jamaica with the focus on financial regime regulations and standards and guidelines.

Speaker Change: We are regulated by the International Seabed Authority, and as we speak, the ISA session is in progress in Kingston, Jamaica, with the focus on financial regime regulations and standards and guidelines. Last July , the Republic of Nauru notified the ISA of Nauru's intention to lodge an application.

Last July the Republic of now Rune notified the ISI of of noise intention to large and application.

Speaker Change: for an exploitation contract in July 2023. And this two-year notice obliges the ISA to consider and provisionally approve NORI's application based on the state of the exploitation regulations at the time, whether final or draft.

For an exploitation contract in July 2023, and this T. I notice obliges, the ISI to consider and provisionally approved nor is application based on the state of the exploitation regulations at the time, where the final draft and following this too you know.

Speaker Change: And following this two-year notice, the ISA laid out a roadmap for its work plan in 2022 and 2023.

It is the ISI laid out a road map for its work plan in 2022 and 2023.

Speaker Change: to two sessions per year and a third meeting of the council in 2022 could also be considered.

Two two sessions per year and a third meeting of the council in 2022 could also be considered.

Speaker Change: So we expect that the ISA will meet their stated goal of finalizing the exploitation regs by July 9, 2023, and NORI will be applying for an exploitation contract in the third quarter of 2023 based on final regulations.

So we expect that the RSA will meet their stated goal of finalizing the exploitation rigs by July nine 2023, and Norway will be applying for an exploitation contract in the third quarter of 2023 based on final regulations.

Speaker Change: And this timeline keeps us on track to begin commercial production in the Nori D area in Q4 2024.

And this timeline keeps us on track to begin commercial production in the north area in Q4 2024.

Speaker Change: We will need to raise additional funds in the next 12 months or so, but we're not in a rush to do it. We continue to hit our milestones, which we believe will allow us to raise capital at more attractive terms.

We will need to raise additional funds in the next 12 months or so.

We're not in a rush to do it we continue to hit our milestones, which we believe will allow us to raise capital at more attractive terms our.

Speaker Change: Our cash balance was $85 million at the end of December .

Our cash balance was $85 million at the end of December .

Speaker Change: And the amount currently sitting in our bank account as of March 24 is $73 million.

And the amount currently sitting in our bank account as of March 24 is $73 million.

Speaker Change: Our board has approved a budget which allows us to achieve many key milestones and to fund operations into Q3 2023. And here are some of the milestones we expect to reach.

Our board has approved a budget, which allows us to achieve many key milestones and to fund operations into Q3, 2023, and here's some of the milestones we expect to reach this year we.

Speaker Change: We intend to reach binding Project Zero agreements with both all CEs and Epsilon carbon.

We intend to reach binding project zero agreements with both <unk> and Epsilon carbon de risking project zero and reducing the cost to be borne by TMC prior to getting into commercial production.

Speaker Change: de-risking Project Zero and reducing the cost to be borne by TNC prior to getting into commercial production.

Speaker Change: We intend to secure offtakes for Project Zero's nickel, copper, and cobalt mass and the manganese silicate product.

We intend to secure offtake for project zero as nickel copper and cobalt mass.

The manganese silicon products onshore.

Speaker Change: Onshore, we'll analyze and share the results of our pyrometallurgical pilot program, and we'll also complete our bench scale hydro network with SGS. And offshore, we'll be doing a pilot collector trial this summer in Nori, Area D. And this trial will include a second vessel as part of our collector test monitoring campaign, which will observe and analyze the impacts of pilot collection.

Onshore, we will analyze and share the results of our Pyro metallurgical pilot program and we will also complete our bench scale Hydro network with SGS and offshore will be doing a pilot collected trial. This summer and Norrie area D. And this trial will include a second vessel as part of our collective test monitoring camps.

<unk>, which will observe and analyze the impacts.

Our pilot collection.

Speaker Change: We're also excited to continue developing the digital twin with Pomsberg, which will give eyes and ears to the regulator and our stakeholders.

We're also excited to continue developing the digital twin with Kongsberg, which will give ivan is to the regulator and all stakeholders.

So with that I am Tony over to Craig to speak on Tnc's project economics in our fourth quarter results.

Speaker Change: So with that, I'm turning over to Craig to speak on TNC's project economics and our fourth quarter results.

Craig Seske: Thank you, Jared. In March 2021, AMC Consultants issued an SEC Regulation SK-1300 Compliant Initial Assessment of the Project Economics for the Noriegi Area. This initial assessment is available in the Investors section of our website, and the Noriegi financial model can be found beginning on page 310 of that document.

Thank you Jerry.

In March 2021, AMC consultants issued under SEC regulation S. K per 200 compliance initial assessment on the project economics for the Norwegian area.

This initial assessment is available in the investors section of our web site in the North area of the financial model can be found beginning on page three.

Craig Seske: The Noreen D area represents just 22% of our total estimated resource portfolio.

Sure.

<unk> been oriented area represents just 22% of summer total estimated resource portfolio.

Craig Seske: The initial assessment arrived at a net present value of $6.8 billion for NORAD at the beginning of last year, assuming $7 billion of project development capex. As we know, the prices for most of our metals have reached multi-year highs, and the current metal prices, except for nickel, which we've run at $30,000 per ton, the net present value would triple to almost $22 billion, with potential lifetime EBITDA of over $125 billion just for a NORAD block.

The initial assessment right during that critical value of $6 8 billion for already at the beginning of last year, assuming 70 billion in project development Capex.

We know the prices for most of our metals have reached multiyear highs and incremental prices, except for nickel, which we brought on 30000 per ton.

One of the valuable tripled to almost 22 billion with a potential lifetime EBITDA of over 125 billion just for an R&D work.

Craig Seske: At potential steady-state production of 12.5 million tons per annum on Nord-ED toward the end of this decade, we expect to be the lowest-cost nickel producer in the world outside of Russia, with estimated steady-state EBITDA margins above 75% at current metal prices, according to our internal estimates.

A potential steady state production of $12 5 million tonnes per annum on Lori D towards the end of this decade, we expect to be the lowest cost vehicle producer in the world outside of Russia with estimated steady state EBITDA margin above 75% at current metal prices. According to our internal SC.

Craig Seske: We believe these attractive project economics can support us in trading future margin for reduced CAPEX upfront on Project 1. Our recently announced arrangements with Epsilon Carbon and NLCs show our commitment to our CAPEX-like strategy with the initial smaller-scale production for Project 0.

Really these attractive project economics can support us in training and future margin for reduced Capex upfront on project, one our recently announced arrangements with Epsilon carbon and also use sure commitment to our Capex light strategy with the initial smaller steel production for project zero.

Craig Seske: And just one last note on nickel, certainly the events of the past month have shown the world just how sensitive these metal supply chains can be to geopolitical events. And we think the outlook for Class I nickel is bright, but predicting future metal prices is not our business. As such, we've included a sensitivity table to show the NPV for NORAD at various nickel prices, holding all other assumptions constant.

One last note on legal certainly be announced over the past months have shown the world just how sensitive these metal supply chain can be.

Geopolitical events, and we think the outlook for approximately nickel is bright.

Reducing future metal prices have not our business.

We've included a sensitivity table to show the NPV for North <unk> at various nickel prices holding all other assumptions constant the rule of thumb is that every $10000 per ton delta in the nickel price we changed the NPV on northern D by around $6 billion.

Craig Seske: The rule of thumb is that every $10,000 per ton delta in the nickel price would change today's NPV on Norie D by around $6 billion.

Speaker Change: As Jared mentioned earlier, our cash balance of $85 million as of the end of December remains sufficient to fund operations into the third quarter of 2023, at which point TNC subsidiary Nori is expected to apply to the ISA for an exploitation contract.

As Jerry mentioned earlier, our cash balance of $85 million as of the end of December remains sufficient on operations into the third quarter of 2023 at which point TNC subsidiary Laurie is expected to apply to the IFC for an exploitation contract.

Speaker Change: And despite facing significant financial headwinds as part of the DSPAC process, we achieved major project development milestones in 2021, which you can see on the right-hand side of this page.

And despite facing significant financial headwinds was part of the destock process. We achieved a major project development milestones in 2021, which you can see on the right hand side of this page.

Speaker Change: The company reported a net loss of $19.8 million, or $0.09 per share, for the fourth quarter of 2021, compared to a net loss of $17.1 million, or $0.09 per share, for the fourth quarter of 2020. The higher net loss was mainly attributable to $2.6 million in non-cash share-based compensation, and increased general and administrative expenses, as being a public company, partially offset by an $8.5 million reduction in the fair value of the warrants liability, as a result of the decrease in our share price.

The company reported a net loss of $19 8 million or <unk> <unk> per share for the fourth quarter of 2021 compared to a net loss of $17 1 million or <unk> <unk> per share for the first quarter of 2020, but higher net loss was mainly attributable to $2 6 million and noncash share based compensation and increased general and.

<unk> expenses.

Being a public company, partially offset by $8 $5 million reduction in the fair value of the warrant liability as a result of a decrease in our share price.

Speaker Change: Backing out that $8.5 million more liability adjustment results in the net operating loss we show on this page of $28.3 million for Q4 2021.

Backing out that eight and a half million dollars warrant liability adjustment, resulting in a net operating loss was shown on this page of $28 3 million for Q4 2021.

Speaker Change: Exploration expenses of $12.8 million in the fourth quarter of 2021 were similar year-over-year, and general and administrative expenses were $15.5 million for the fourth quarter of 2021 compared to $3.9 million for the fourth quarter of 2020, mainly driven by higher non-cash share-based compensation expense and overall higher costs as a result of being a public company.

Exploration expenses of $12 8 million in the fourth quarter of 2021 with similar year over year and general and administrative expenses were $15 5 million for the fourth quarter of 2021 compared to $3 9 million for the fourth quarter of 2020, mainly driven by higher noncash share based compensation expense and overall higher costs as a result of being a COO.

Okay.

Speaker Change: Excluding non-recurring items, free cash flow for the fourth quarter of 2021 was negative $27.8 million compared to negative $5.2 million in the fourth quarter of 2020.

<unk> nonrecurring items free cash flow for the fourth quarter of 2021 was negative $27 8 million compared to negative $5 2 million in the fourth quarter of 2020.

Speaker Change: For the year ended December 31st, 2021, the company reported a net loss of $141 million compared to $56.6 million in the prior year. Backing up the aforementioned $8.5 million more liability adjustment results in a net operating loss of $149.6 million for the full year 2021.

For the year ended December 31, 2021, the company reported a net loss of $141 million compared to $56 6 million.

<unk>.

<unk> mentioned that $8 5 million warrant liability adjustments results in a net operating loss of $149 6 million for the full year of 2021 XP.

Speaker Change: Exploration expenses increased from $48.9 million to $93.0 million and G&A expenses increased from $7.7 million to $56.6 million when comparing 2020 to 2021. Apart from the higher cost structure as a public company, the largest increases both in exploration expenses and G&A expenses resulted from the issuance of stock options for Deep Green employees and contractors in Q1 2021 before the business combination was finalized.

Exploration expenses increased from $48 9 million to 93.0.

And G&A expenses increased from seven 7 million $56 6 million when comparing 2012 to 2021 apart from a higher cost structure as a public company the largest increases both in exploration expenses and G&A expenses resulted from the issuance of stock options for deeply employees and contractors in Q1 2021 before.

The business combination was finalized the auction granted in 2021 or awarded in lieu of cash bonuses to retain the great employees of further into the business combination.

Speaker Change: The options granted in 2021 were awarded in lieu of cash bonuses to retain deep green employees and further incentive to business combination.

Speaker Change: The Deep Green Board had the sole discretion to award these options, and they exercised this discretion to do so, and it did not consistently award a cash bonus as two employees despite multiple years of service.

Equally board have a sole discretion to award these options and the exercise of its discretion to do so.

We do not consistently awarded cash bonuses to employees. Despite multiple years of service. Some reactions were granted subject to the achievement of significant long term performance goals of degree now TLC.

Speaker Change: Some of the options were granted subject to the achievement of significant long-term performance goals of Deep Green, now TNC, and those remaining undusted. Finally, excluding...

<unk> remain invested.

Finally, excluding nonrecurring items free cash flow for 2021 was negative $51 1 million compared to negative $26 5 million in 2020.

Speaker Change: Pre-cash flow for 2021 was negative 51.1 million, compared to negative 26.5 million in 2020. And I'll now turn it back over to Jared for some final comments before opening it up to Q&A.

And I'll now turn it back over to Jerry for some final comments before opening it up to Q&A.

Thanks, Greg.

Jared Barron: So in closing, the supply chain breakdowns and unprecedented price volatility of 2022 have spotlighted the fragility of global metal markets like

In closing the supply chain breakdowns and unprecedented price volatility of 2022 have spotlighted, the fragility of global metal markets like nickel.

Jared Barron: There should no longer be any doubt. Securing the supplies of critical battery metals is a matter not just of national security, but of global security. And our strategy has always been to develop the polymetallic nodule resource.

There should no longer be any doubts securing the supply of critical battery metals is amount of not just a national security, but of global security and our strategy has always been to develop the poly metallic nodule results through partnerships because it allows us to move faster and because it allows us to get into.

Jared Barron: through partnerships, because it allows us to move faster, and because it allows us to get into production in a capital-like manner.

Production in a capital light manner.

Jared Barron: The two strategic developments we announced last week have very important milestones on that front.

The two strategic developments, we announced last week.

Very important milestones on that trumps.

Jared Barron: So in summary, at a time when the inherent risks of battery metal supply chains are becoming apparent, we have taken major steps towards de-risking the world's largest estimated undeveloped source of battery metals. And with that, we'd like to turn it back over to the operator for any questions.

So in summary at a time when the inherent risks of battery metal supply chains are becoming apparent we have taken major steps towards de risking the world's largest estimated undeveloped source of battery metals and with that wed like to turn it back over to the operator for any questions.

Speaker Change: Thank you. If you would like to ask a question, please press star one on your telephone keypad. If for any reason you would like to remove that question, please press star followed by two. Again, to ask a question, please press star one. As a reminder, if you're using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly as questions are registered.

Thank you.

If you would like to ask a question. Please press star one.

Allophones pad if for any reason you would like to remove a question. Please press star followed by Tim again to ask a question. Please press star one.

Reminder, if you are using speaker phone. Please remember to pick up your handset before asking your question. We will pause here briefly ask questions are registered.

First question comes from the line of Jake <unk> with <unk>.

Speaker Change: First question comes from the line of Jake Sekelski with Alliance Global Partners. Please go ahead.

<unk> Global partners. Please go ahead.

Hey, Thanks for taking my questions.

Jake Sekelski: So, just looking at the Epsilon MOU, obviously, a major de-risking event, and I know it's early there, but do you have any visibility yet on when we might see results of the PFS? And then, secondly, does the MOU satisfy all processing requirements from Project Zero? Thank you.

So.

Just looking at the Epsilon Mou, obviously, a major derisking event.

And I know, it's early there, but do you have any visibility yet on when we might see results.

Of the PFS and then secondly does the Mou satisfy all processing requirements for throughput from project Terra.

Well we're fortunate.

Speaker Change: to have Vikram on the line so he can help us answer some of those questions.

To have vikram on the lines. So he can help us.

And so some of those questions but.

Speaker Change: What we've realized on the processing, if I answer the back-end question first, as I mentioned in the presentation, we found there's an appetite for people to take delivery of our matte material.

What we've realized on the processing if I answer the back end question first.

As I mentioned in the presentation.

We found there's an appetite for people to take delivery of our mat material and so the math that I hold in my hand before contains about 40% nickel, 30% copper and between around 4% Cobo.

Speaker Change: And so the map that I held in my hands before contains about 40% nickel, 30% copper, and between around 4% cobalt. So it's a very attractive product if you're a battery cell manufacturer. And what we've heard from some companies is that taking that intermediate product...

Cobalt so it's a very attractive product if your battery cell manufacturer and what we've heard from some companies is that taking that intermediate products can help them take steps out of the process and thereby reduce the per kilowatt hour cost of production.

Speaker Change: can help them take steps out of the process and thereby reduce their per kilowatt hour cost of production and can also deliver economic.

And can also deliver economic benefits to the mall.

Speaker Change: benefits to the more, the heavier investors in the R&D side of the battery cell manufacturing. And so, you know, if we can get almost full payables for the metals contained in that matte material but not have to run through the pyrometallurgical step, then, you know, that's a really important part of the process. But Vikram, I might throw it to you just on the timing of what we agreed on the – with regards to the feasibility.

The heavy investors in the R&D side of the battery cell manufacturing and so if we can get almost full payables for the metals contained in that not material, but not have to run through the pyro metallurgical step.

Then that's a really important part of the process, but Victor I'll now throw it to you just on the timing of what we agreed on the.

With regards to the feasibility.

Vikram Handa: So I think on the pre-feasibility side, our team is already working on doing some kind of basic engineering and get a more accurate number on the CAPEX as well. And we aim to finish the pre-feasibility report by September this year. And I think at that stage, we're ready to go. Thank you.

Yes.

Thanks, Chad So I think on the piece visibility side of like he was already working on.

Doing some kind of basic engineering.

And.

At a more accurate number on the capex as well.

And we aim to finish the pre feasibility report by September this year.

And I think at that stage, we will be.

Vikram Handa: I would say plus or minus 10% on CapEx and have a really good idea on the whole project schedule of implementation and what we plan to spend to build it as well in India.

Plus or minus 10% on Capex and have a really good idea of the whole project.

As you look into that mutation and what they plan to spend a bit of live as well in India.

I hope I answered your question.

Speaker Change: Yeah, that's helpful. Thank you. And then, just to be clear, the MOU is just for Project Zero, correct? It doesn't restrict PMC from exploring discussions with other partners or looking at other locations for processing for other parts of the project?

Yeah. That's helpful. Thank you.

And then just just to be clear the Mou is just for project zero correct.

It doesn't restrict TNC from exploring discussions with other partners are looking at other locations for processing.

For other parts of the project.

That's correct.

Yep.

Speaker Change: That's correct. Okay. Perfect. And then lastly, just on the...

That's correct okay perfect.

And then lastly.

Yeah.

Speaker Change: You can expect us to continue to be exploring all of the options. You know, I guess we.

You can expect us to continue to the exploring all of the options.

<unk>.

I guess we.

Speaker Change: we see great potential in developing countries like India who have an insatiable demand for these important base metals. And if you'd asked me five years ago, I probably would have predicted that we'd be doing a lot of this onshore processing in China.

We've Ah we see great potential in developing countries like India, who have a.

An insatiable demand for these important base metals and if you'd asked me.

Five years ago, I, probably would have predicted that wed be doing a lot of this onshore processing in China.

Speaker Change: But that's obviously become problematic and as you know, a lot of the material we make is in the magnetic silicate and so.

That's obviously become problematic and as you know a lot of the material. We make is in the manganese silicate and so to do a lot of that onshore processing in a market that has such explosive growth in the steel industry.

Speaker Change: to do a lot of that onshore processing in a market that has such explosive growth in their steel industry is appearing to make a lot of sense.

Is appearing to make a lot of sense to us.

Got it got it okay.

Speaker Change: And then, just lastly, on the pilot collection program slated for later this year, I'm just curious if you're able to shed any light on the timeline for when we might see some environmental impact data start to roll in there.

And then just lastly on the pilot collection program slated for later this year.

I'm, just curious if you're able to shed any light on the timeline.

For when we might see some environmental impact data start to roll in there.

Sure well we will.

Speaker Change: I mean, we have collected such an enormous amount of baseline data, which we've submitted as part of our EIS.

I mean, we have collected such an enormous amount of baseline data, which we've submitted as part of value I S.

Speaker Change: We've submitted half of that, the second half will come as those reports are filed with us from the many scientists that we've got working. And then we have a very aggressive program to monitor the collector program that will be happening in the third quarter.

We've submitted half of that the second half will come as those reports are filed with us from the the many scientists that we felt working and then we have a very.

Aggressive.

Program to monitor the select program that will be happening in the third quarter.

Speaker Change: And so, you know, we will release a lot of those numbers as and when we submit the application. But we are very fortunate, of course, to have the benefit of some of the other contractors who have completed.

And so.

We will release a lot of those numbers as and when we submit the application, but we are very fortunate of course to have the benefit of some of the other contractors who have completed.

Speaker Change: those trials and I showed you a video, we showed you a video of the Belgian contractor with their machine and of course...

Those trials and I showed you a video we showed you a video of the Belgium contracted with the machine and of course, they had a a second vessel monitoring all of those activities and it started to report those results, which are which have been in line with Ah Alex.

Speaker Change: they had a second vessel monitoring all of those activities and it started to report those results which have been in line with our expectations. We had DHI do a lot of our plume modeling and the plume modeling that's come in from other contractors has been in line with what we forecast.

Dictations, we had <unk> do a lot of absolute and modeling and the plume modeling that's come in from other contractors has been in line with what we forecast.

So I think we have a pretty good steer on that already amongst that of course.

Speaker Change: So I think we have a pretty good steer on that already, I'm honest, but of course there'll be learnings that are unique to us during that program. Okay, that's helpful. That's all for me.

Adobe learnings that are unique to us during that program.

Okay. That's helpful. That's all for me Thanks, Scott.

Thank you for the question.

Thank you Ms just account scheme.

Our next question comes from the line of David Snow with Energy Equities. Please go ahead.

Speaker Change: Our next question comes from the line of David Snow with Energy Equity. Please go ahead.

David Snow: Yeah. Hi. Could you walk us through the.

Hi, could you walk us through the.

Yeah.

David Snow: model for 1.3 million tons a year of wet nodules, selling price, and the fee to your employer.

Model for one 3 million tons a year of wet.

Nodules.

Selling price and.

Okay.

Me too.

Your partner in any other costs.

If you could please.

Starting with the selling price.

Speaker Change: Sure. Yeah, happy to take that one. So the assumption and we noted on some of Jared's comments.

Sure.

Yes happy to take that one.

So the assumption and we noted on some of <unk> comments is that.

Speaker Change: is that for that 1.3 million, the products would be nickel, copper, cobalt, and match and a manganese silicate product.

And that $1 3 million of products would be nickel copper cobalt match kind of manganese silica products.

Speaker Change: So first of all the equation would be what payables would you get for those products as a percent of the prices for those metals on the LME and we believe you would get 85 to 90 percent or more of LME pricing for that basket.

So first of all the equation would be payable.

Payables were to get to those products as a percent of the prices for those metals on the <unk>.

And we believe you will get 85% to 90% or more of <unk> pricing for that basket.

Speaker Change: One thing to keep in mind in terms of just converting wet nodules to dry, we've actually noted in prior disclosure that there's a 24% moisture content. So when you're converting wet nodules to dry, you would multiply by 76%. So all in, for the products that we would intend to sell with Project Zero, total revenue per ton would be roughly $700 at current local prices. $700 per dry or wet.

One thing to keep in mind in terms of just converting when.

<unk> modules to drive we've actually.

Noted in prior disclosure that there was a 24% moisture content. So when you are converting what modules to drive thru and multiply by 76%.

So all in for the products that we would intend to sell with project zero total revenue per ton would be roughly $700 at current metal prices.

700 per dry in terms of that.

That's for dry dock.

Speaker Change: OK.

Okay.

Speaker Change: And then, on a dry ton basis, what fee would you pay for the modules to be collected and

And then on a dru.

Ton basis.

Would you pay.

For the modules to be collected and transported.

My partner in terms of the collection and transfer Shouldnt fee. Other we've agreed with <unk>. It would begin at roughly 150 euro per wet tonne, where should you converted to U S dollars and then convert that to cost for dry tonne would approximate $217 per dry Tom.

Speaker Change: In terms of the collection and trans-shipment fee that we've agreed with ALSEAS, it would begin at roughly €150 per wet ton, which if you convert to U.S. dollars and then convert that to cost per dry ton, it would approximate $217 per dry ton.

Speaker Change: We have not given any detailed disclosure in terms of the onshore processing side of things, but it would be roughly $217 per dry ton for the collection of shiver, and then roughly $700 per dry ton in revenue.

Given any detailed disclosure in terms of the onshore processing.

<unk> side of things, but it would be roughly 217 for dry powder for the collection of shipment.

Roughly $700 per dry Tom.

Good.

Speaker Change: And do you have any additional costs in getting it to the point of collecting and...

And do you have any additional costs.

Getting to.

Two.

The.

Point of of.

Collecting and.

Okay.

Good morning, or is that including everything on that $217.

Speaker Change: So that's getting into short, but, you know, we continue.

So that's getting into sure.

But.

Continue.

Sorry.

Nick.

You're breaking up I believe.

Speaker Change: That is everything in order to get it to shore. We haven't provided detailed guidance in terms of the cost per ton for the processing element for project zero, but as we progress further, along with our partner, Epsilon Carbon, we would hope to be able to provide additional information in future calls.

That is everything in order to get into short by we haven't provided detailed guidance in terms of the cost per ton for the processing element for project zero, but as we progress further.

Along with our partner Epsilon carbon we would hope to be able to provide additional information in future calls.

Alright.

Speaker Change: All right. OK, so that would give you the cost to shore. And ballpark processing costs would be half of that or about equal to that? Mm-hmm. Wow. Yeah, we're not at the point.

Okay. So that would give you.

The costs to shore and.

Ballpark processing costs would be.

Half of that or.

Equal to that.

Well, yes, we're not at a point, where we could.

Go ahead Gerry.

No that's okay.

That's.

Speaker Change: They'll be helping margin lift in it for us. We won't release that data until Vikram and his team have bedded down some of those costs a little bit further. But of course, we have a firm idea where they are, but it's a little bit early for us to release those. But even at this small scale, the project, we predict, will show some attractive margins.

There'll be there'll be healthy margin left in it for us that we haven't released that data until vikram and his team.

<unk> had bedded down some of those costs are a little bit further.

Of course.

We have a firm idea where they are.

It's a little bit early for us to release, those but even at this small scale projects.

We predict will will show some attractive margin.

And then.

Speaker Change: And then is the, do you split the resulting profits 50-50 with Allsays?

Yes.

But the.

The resulting profits 50, 50 with <unk> or how does that work.

No no as we mentioned there is a royal.

Speaker Change: No, no. As we mentioned, there is a royalty that will be paid to all seas on top of their costs. And so their return is aligned with the metal value of the...

A royalty that will be paid to all CS.

And we on top of their costs and so so their return is aligned with the metal value.

Of the of the or at the time.

Speaker Change: But we've released the numbers on the cost, and that would be the numbers that we expect will reflect the entire offshore cost.

But we released the numbers on the cost and that would be the numbers that we expect.

Will be.

Reflect the entire offshore cost.

Okay.

We are ready for our next question.

Mr. Smith.

Our next question comes from the line of John <unk> with Wedbush Securities. Please go ahead.

Speaker Change: Our next question comes from a line of John Katzengrist with Wedbush Securities. Please go ahead.

Hello.

Can you hear me.

We got you.

That sounds great. Thanks for taking my question.

John Katzengrist: Just looking at, I guess bird's eye view for 2022, the two or three key strategic initiatives or goals.

Just looking at I guess bird's eye view for 2022, the tour Street key strict strategic initiatives or goals.

Thank you.

Speaker Change: Sorry, did you say for 2023 or 2022?

Sorry did you say for 2023 or 2022.

'twenty two.

22, yes, so I guess the most important thing is.

Speaker Change: Twenty-two. Yeah. So, I guess the most important thing is...

No.

I really want to emphasize the importance of the deal we announced with Epsilon carbon and with Ocs, because they really provide the foundation stones for us to be able to deliver.

Speaker Change: I really want to emphasize the importance of the deal we announced with Epsilon Carbon and with All Seas because they really provide the foundation stones.

Speaker Change: for us to be able to deliver on our future production. And so betting those MOUs into binding heads of terms is gonna be obviously important, but we have a very high degree of confidence that they will close in a way that we've outlined.

You know our future production and so betting those ammo to use into binding heads of terms is going to be obviously important but we have a very high degree of confidence.

So that they will.

Close.

In a way that we've outlined.

Speaker Change: Putting that aside, the collector trial in the second half of the year is clearly important, but it's important to recognize that all seas have been up in the North Sea now.

Putting that aside.

We collect the trial in the second half of the year is clearly important buts.

It's important to recognize the <unk> have been up in the in the North Sea now and then.

Speaker Change: basically those trials have been going very well, and so you saw some pictures of the harvester being launched and recovered and operating on the sea floor.

Basically those trials have been going very well and so you saw some pictures of the harvest.

Being launched and recovered and operating on the seasonal.

Speaker Change: I guess the thing that I said on our last earnings call is that we can expect this year will be customer offtakes and the customer offtakes will come in two forms.

Yes the.

The thing that I said on our last earnings call.

Is that we can expect this year will be customer off takes and the customer off takes will come in two forms that will come in for our manganese silicate materials.

Speaker Change: They'll come in for our manganese silicate material, and Vikram and his team are helping us.

And.

Vikram and his team are helping us in that regard with regard to the local customers in India.

Speaker Change: in that regard with regard to local customers in India and as Vikram said on the call today already we're getting some very strong expressions of interest.

And as Vikram said on the call today.

Already we're getting some very strong expressions of interest.

But the other.

Speaker Change: offtake will be for the map material. And as I stated previously, our...

Offtake will be for the mat material and as I stated previously.

Sure.

Speaker Change: belief is that we will attract a consumer facing brand into that. We already have an offtake with Glencore to some of the nickel and some of the copper.

Belief is that we will attract a consumer facing brand into that we already have an offtake with glencore for some of the nickel and some of the copper.

Speaker Change: But having a consumer-facing brand way into this, because if you're an EV maker, you're staying awake at night worried about availability, price, and sustainability of your raw materials. And so, clearly, those conversations, you know, have stepped up a gear this year because of what's been going on globally in supply chain.

But having a consumer facing brand weigh into this because if youre an EV maker.

Your staying awake at night worried about availability price and sustainability of your raw materials and so clearly those conversations has.

It has stepped up again this year.

Most of what's been going on globally and supply chains.

Speaker Change: uh... but i think that's probably going to be the the one that people will most be looking forward to and uh... you know i remain super confident that will deliver on on both of those but for the manganese silicate and also for the uh... map material

I think that's probably going to be the one that people will mostly be looking forward to and I remain confident that we'll deliver them on both of those both for the manganese silicon and also the mat material this year.

Thank you.

Thank you Mr <unk>.

The next question comes from the line of Malcolm Macdonald with Bank of America. Please go ahead.

Speaker Change: The next question comes from a line of Malcolm McDonald with Bank of America. Please go ahead.

Hey, guys.

Malcolm McDonald: Just a quick question. I mean, you basically answered it a second ago, but if you could elaborate further just regarding customer uptake and Epsilon and how that would relate potentially with some other

And just a quick question I mean, you basically answered it.

A second ago, but if you could elaborate further just regarding customer uptake in <unk>.

<unk> and how.

How that would relate potentially with.

Some other companies involved with us on that would be wonderful.

Speaker Change: Well, Dickerent, I might let you talk on the manganese side, if you're okay with that.

Well.

Vikram I might let mutual on the manganese side.

If if youre comfortable too.

Yeah sure I'll take that question.

Dickerent: Yeah, sure. I'll take that question. So on the magazine side, uh, we've been discussing the material specifications with paralyzed customers and steel customers in India. And we've been, we'll be getting samples of.

The magazine side, winning discussing the material specifications with the bare alloys customers in customers in India.

And we will be getting samples of.

Dickerent: the pilot plan that TMC has been running, and we'll be giving that to customers for further sampling, and we expect that in

But making me look at some of the pilot plant that PNC has been running and we'll be giving that to customers before the sampling and we expect that in <unk>.

Dickerent: soon thereafter, we can enter into some MOUs with them to take that offtake as well. So I think once the material gets with them.

Thereafter, we can enter into some.

And we'll use the Ben can you take that uptick as well so I think one of them to deal with it.

Uh huh.

Dickerent: The sampling will go pretty fast, but the initial feedback has been very positive on what they've seen on the specification side.

The same thing will hold pretty fast, but the initial feedback has been very positive on what they're seeing on the state of the specification site.

Dickerent: So that's on the beginning side. On the epsilon side, we also manufacture graphite for lithium-ion batteries, whether it's EV or ESS. So we are very plugged into the whole ecosystem of anode, cathode, and from a precursor to a cam. So we understand this space very well. So it's a very natural fit to work with EMC and develop.

So that's what I'm begging you save on the on the Epsilon side, we also manufacture graphite for lithium ion batteries.

Whether its E V O U S. So we're very plugged into the whole ecosystem.

I know cathode precursor to Tam. So we understand this space very well so it's a very natural fit to work with PMC and develop.

This unique way of.

Dickerent: you know, getting nickel, copper and cobalt into the sector.

Getting Nichols.

And cobalt into the sector.

Thank you very much.

Speaker Change: And Gerard, just one question. I mean, how much interest have you guys gotten?

And Gerard just one one question.

How much interest have you guys gotten.

Speaker Change: in light of recent nickel prices from other potential off-date customers. I mean, has it been out of this world?

Just in light of recent nickel prices from.

From other potential update customers I mean is it.

Ben.

Out of this world are.

Well I.

Speaker Change: I wouldn't say it's been out of this world, but we, as I said previously, you know, we are talking to a number of automakers and it served us very well.

I wouldn't say seeing out of this world that we as I've said previously.

We are talking to a number of.

Automakers and.

It served us very well.

Speaker Change: by not entering into those agreements previously, because, of course,

By not entering into those agreements previously because of course.

Speaker Change: Um, you know, customers want to secure an economic benefit if you're, if they're the first in, or if you're some years away from production, that every day that we get closer to production, and of course, world events.

The customers want to secure and economic benefit.

If they are the first in or if you will some years away from production that everyday that we get closer to production and of course world events.

Speaker Change: as they have unfolded, have started to make automakers panic just a little bit, I sense. And it's not just automakers, of course. It's other industries that are looking to secure the supply of these materials.

As they have unfolded have started to make automakers panic, just a little bit I sense, and it's not just automate because of course, it's it's other industries that are looking to secure the supply of these materials.

Speaker Change: including, of course, the intermediate players.

Including of course, the intermediate players.

Speaker Change: But I would say we're feeling pretty confident about where we sit at the moment, Malcolm. And we're not panicking about trying to get a deal done for the sake of getting a deal done. We've been very deliberate about saying we will do the right deal at the right time. And of course, every day that goes by, we are gathering more and more environmental data, which we're sharing as soon as we can, because it's consistent with our belief.

But I would say, we're feeling pretty confident about where we sit at the moment Malcolm and.

You know, we're not panicking about trying to get a deal done for the sake of getting a deal done we've been very deliberate about saying we will do the right deal at the right time and of course everyday that goes by we are gathering more and more environmental data, which we're sharing.

As soon as we can because it's consistent with our belief that making battery metals from the poly metallic nodules comes at a much lower environmental and societal costs and so the more that we get hold of those results more confidence not only gives us but of course our customers.

Speaker Change: that making battery metals from these polymetallic nodules comes at a much lower environmental and societal cost. And so the more that we get hold of those results, you know, the more confidence, not only gives us, but of course our customers. And so, you know, consistent with what I said before, you know, I'm sure by the end of this year, I'm confident by the end of this year that we will have one of those consumer facing brands, you know.

Yeah.

Consistent with what I said before I'm.

I'm sure by the end of this year I'm confident by the end of this year that we will have one of those consumer facing brands.

Speaker Change: to markdown as one of our customers. And, of course.

To markdown as one of our customers and of course.

Speaker Change: You know, having the epsilon carbon partnership is also, you know, really important to us because as part of the arrangement and we've we spent some really quality time working with Vikram's team over the last many months.

Adding the Epsilon carbon partnership is also.

Really important to us because as part of the arrangement and we.

We spent some really quality time working with <unk> team over the last many months and more recently, we toured his facilities in India.

Speaker Change: And more recently, we toured his facilities in India.

Speaker Change: You know, there's a real focus in his organization about ESG. There's a real focus on efficiency. There's a real focus on automation. And, you know, we really feel confident that, you know, with their relationship with, you know, the JSW Steel Group as well, that it's a reminder, you know, that our manganese products, you know, is just so...

You know it is there's a real focus and his organization about.

S. G is a real focus on efficiency is a real focus on automation.

And we really feel.

Confident that.

With the relationship with the.

J S. W still group as well that it is a reminder.

Our manganese products is just so.

Speaker Change: importance as a stable to any growing economy. We all talk about battery metals, but the manganese of course is required to make every ton of steel on the planet. And as I mentioned in my presentation, we're now seeing the EV industry look at using more manganese in battery cathodes as well. And so that's very encouraging for us and for the industry to use today.

Importance as a stable to any growing economy, we all talk about battery metals, but the manganese of course is required to make every ton of steel on the planet and.

And as I mentioned in my presentation, we're now seeing.

The EV industry look at using more manganese and battery capex as well and so you know.

That's very encouraging for us and for the industry as they are.

Speaker Change: as they try and control, you know, costs that are moving and raw materials that are in short supply. Thanks.

They try and control costs that are moving in raw materials that are in short supply.

Thank you very much.

Okay.

Thank you Mr Mcdonald.

Speaker Change: Our next question was submitted by Peter Fiorella and the question is, what is the estimated date of completion on the pilot trial?

Our next question was submitted by Peter <unk> and the question is what is the estimated date of completion on the pilot trials.

So we were not releasing that number that date, but for any one reason and that is.

Speaker Change: So we're not releasing that number, that date, but for only one reason, and that is just for security reasons.

And just for security reasons.

But.

Speaker Change: What I can tell you is that the first trials were completed in the North Sea very recently. And of course, what we have announced is that the trials will happen in the third quarter.

What I can tell you is that the first trials were completed in the North Sea very recently.

And of course.

What we have announced is that the trials will happen in the third quarter.

Speaker Change: And so we expect to see the hidden gem back in port by the end of the year.

So.

We expect to see the hidden gem.

Back in part by the end of the year.

Thank you.

Speaker Change: The next question was submitted by Jacob Leighton. The question is, if I am not mistaken, TMC currently has plans for a processing plant to be located in Texas in the future. Could you comment if this indicates strategic placement for potential offtakers?

The next question was submitted.

Hi, Jacob Lighten. The question is if I am not mistaken at TMC. Currently has plans for a processing plant to be located in Texas and the future could you comment if this indicates strategic placement or potential off takers.

Speaker Change: We have been exploring where we would locate our processing plant, and by all means, we have not given up on the idea that one day, a processing plant might exist in Texas.

We have been exploring where we would locate.

We're assessing plant and.

And by all means.

We have not given up on the idea that one day, a processing plant might exist in in Texas.

But.

Speaker Change: Our first priority is to get our first processing plant up and running and our intention is to do that in collaboration with Epsilon Carbon and that first plant will be in India.

Our first priority is to get our first processing plant up and running.

And our intention is to do that in.

Ration with Epsilon carbon and that first plant will be in India.

Speaker Change: Will a future plant be on USA Soil?

We'll have future plant be on USA soil.

Maybe.

Speaker Change: It would make sense to, right? I mean, you heard all the statistics I talked about in my presentation.

It would make sense to right I mean, you heard all the statistics I talked about in my presentation.

Speaker Change: and uh... but there seems to be a lot of talk and just not as much action coming out of uh... the u.s. as we're seeing in some other markets

But there seems to be a lot of talk and just not as much action coming out of the U S.

We have seen in some other markets.

And it's worth a mention.

And two we would have seen the news today can provide administration drafting and owner invoking the defense production Act for <unk>.

Speaker Change: would have seen the news today from the Biden administration drafting an order invoking the Defense Protection Act for critical metals based on some feedback from several U.S. senators.

Critical metals based on some feedback from several U S. Senators. So there is quite a bit of momentum within the U S and frankly, a lot of other jurisdictions, who want to locate this battery material processing onshore.

Speaker Change: So there is quite a bit of momentum within the U.S. and, frankly, a lot of other jurisdictions who want to locate this battery material processing on shore. But it's very important for...

It's very important for TNC.

Speaker Change: As we look to get into first production with Project Zero, to find a first partner who's very supportive and, you know, has a country and a government that's very supportive as well. And as Jared noted, some of the statements and initiatives and capital investment from Prime Minister Modi certainly underscores the welcome reception that we've been receiving in India, and we're looking forward to continuing that relationship.

As we look to get into first production with project zero to find our first partner.

Was very supportive.

As a country. The government is very supportive of work as well as Richard noted.

Some of the statements and initiatives and capital investment from pump Prime Minister Modi, certainly underscores the welcome reception.

Been receiving in India, and we're looking forward to continuing that relationship.

No that's all it is fantastic.

Speaker Change: Great. Thank you. There are no additional questions waiting at this time.

Great. Thank you there are no additional questions waiting at this time.

Speaker Change: That concludes the Metals Company's fourth quarter and full year 2021 Corporate Update Conference Call. I hope you all enjoy the rest of your day. You may now disconnect your lines.

That concludes the metal companies fourth quarter and full year 2021, corporate update conference call I Hope you all enjoy the rest of your day you may now disconnect your lines.

Yeah.