Q2 2025 TMC Metals Co Earnings Call

Peter's presentation, there'll be a question and answer session to.

To ask a question during the session you will need to press star one one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question. Please press star one one again.

Please be advised that today's conference is being recorded.

I would now like to turn the conference over to Craig Cheskey CFO with the metals company. Please go ahead.

Thank you Liz please note that during this call certain statements made by the company, we are going to be forward looking and based on management's beliefs and assumptions from information available. At this time. These statements are subject to known and unknown risks and uncertainties many of which may be beyond our control. 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.

Our remarks today May also include non-GAAP financial measures, including with respect to free cash flows and additional details regarding these non-GAAP financial measures, including reconciliations to the most recent directly comparable GAAP financial measures can be found in our slide deck being used with this call. You are welcome to follow along with our slide deck or if joining us by phone.

Can access it at any time at investors metals Dot CEO and I would now like to turn the call over to our chairman and CEO Jared Barrett Gerrick. Please go ahead.

Thanks, Craig and thanks to all of you for attending.

Firstly I wanted to acknowledge everyone, who made the pilgrimage to New York for our first of a strategy day.

Liz: Good day, and thank you for standing by. Welcome to the Metals Company's second quarter 2025 corporate update conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I'd now like to turn the conference over to Craig Shesky, CFO of the Metals Company. Please go ahead.

On August four last week and that includes my leadership team Board of directors are new and long time strategic partners are sponsoring states.

Speaker #2: Good day, and thank you for standing by. Welcome to The Metals Company's second quarter 2025 corporate update conference call. At this time, all participants are in a listen-only mode.

Speaker #2: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press *11 on your telephone.

Our research analysts and institutional investors and a select group from our army of retail investors.

Speaker #2: You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded.

I believe this experiment was a resounding success, probably the single most exciting workday that ive ever experienced than if you were not part of this year, we intend to repeat this on an annual basis getting bigger and better each time and as our coalition of investors and partners continues to grow.

Speaker #2: I would now like to turn the conference over to Craig Shesky, CFO of the metals company. Please go ahead.

Craig Shesky: Thank you, Liz. Please note that during this call, certain statements made by the company are going to be forward-looking and based on management's beliefs and assumptions from information available at this time. These statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. 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 statement. Our remarks today may also include non-GAAP financial measures, including with respect to free cash flows, and additional details regarding these non-GAAP financial measures, including reconciliations to the most recent directly comparable GAAP financial measures, can be found in our slide deck being used with this call.

Speaker #3: Thank you, Liz. Please note that during this call, certain statements made by the company are going to be forward-looking and based on management's beliefs and assumptions from information available at this time.

Make sure you hold enough TMC shares when the <unk> go up.

So the day was packed with meaningful conversations, including a deep dive into our partnerships within the sizing panel, including Edward and Stephanie <unk> of all fees and cruising chairman Yeung the joy.

Speaker #3: These statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Additionally, please note that the company's actual results may differ materially from those anticipated and accept as required by law.

Speaker #3: We undertake no obligation to update any forward-looking statement. Our remarks today may also include non-GAAP financial measures, including with respect to free cash flows, an additional details regarding these non-GAAP financial measures, including reconciliations to the most recent directly comparable GAAP financial measures, can be found in our slide deck being used with this call.

And in true TMC style. The evening ended on a high note quite literally with a spirited karaoke party.

The strategy day also featured the ringing of the NASDAQ closing Bell, which al NASDAQ Rep said was one of the most enthusiastic and well attended that they have ever had.

And this moment gave me an opportunity to reflect on what what's happened in the previous four years since we last rang that same bell.

Craig Shesky: You're welcome to follow along with our slide deck, or if joining us by phone, you can access it at any time at investors.metals.co. And I'd now like to turn the call over to our chairman and CEO, Gerard Barron. Gerard, please go ahead.

Speaker #3: You are welcome to follow along with our slide deck, or if joining us by phone, you can access it at any time at investors.metals.co.

Speaker #3: And I'd now like to turn the call over to our chairman and CEO, Gerard Barron. Gerard, please go ahead.

And.

I keep coming back to our key TMC must adapt.

Gerard Barron: Thanks, Craig, and thanks to all of you for attending. So firstly, I want to acknowledge everyone who made the pilgrimage to New York for our first ever strategy day on August 4 last week. And that includes my leadership team, the board of directors, our new and long-time strategic partners, our sponsoring states, our research analysts, institutional investors, and a select group from our army of retail investors. I believe this experiment was a resounding success, probably the single most exciting workday that I've ever experienced. And if you were not part of it this year, fear not. We intend to repeat this on an annual basis, getting bigger and better each time. And as our coalition of investors and partners continues to grow, just make sure you hold enough TMC shares when the invites go out.

Speaker #4: Thanks, Craig, and thanks to all of you for attending. So firstly, I want to acknowledge everyone who made the pilgrimage to New York for our first-ever strategy day.

Hi.

It's not just that we've been able to adapt to a capital light approach.

Not that we've been able to adapt to a new regulator that amidst all of this adoption we.

Speaker #4: On August 4, last week, and that includes my leadership team, the Board of Directors, our new and long-time strategic partners, our sponsoring states, our research analysts, institutional investors, and a select group from our army of retail investors.

We've been able to keep the project moving forward, while so many others have been stuck at zero.

And this now puts us in a unique position, where we have a wide moat around the business due in part to all of the project spending and historic milestones over the last 14 years, but also because we're one of the unique companies with competency in this new industry that can actually take the path offered by the exists.

Speaker #4: I believe this experiment was a resounding success—probably the single most exciting workday that I've ever experienced. And if you were not part of it this year, fear not; we intend to repeat this on an annual basis.

<unk> U S C bed mining code.

Many others have no choice, but to wait for the long promise than never delivered ISR mining code.

Speaker #4: Getting bigger and better each time. As our coalition of investors and partners continues to grow, just make sure you hold enough TMC shares when the invites go out.

And I believe that the pace of our progress is only going to accelerate from here with a PFS in hand, as the only commercially viable deep sea bed resource opportunity in the next several years for any potential customers commercial partners and of course public shareholders.

Gerard Barron: So the day was packed with meaningful conversations, including a deep dive into our partnerships with an exciting panel, including Edward and Stephanie Harimer of Allseas and Careers Inc. Chairman Yumbi Choi. And in true TMC style, the evening ended on a high note, quite literally, with a spirited karaoke party. The strategy day also featured the ringing of the NASDAQ closing bell, which our NASDAQ rep said was one of the most enthusiastic and well-attended that they had ever had. And this moment gave me an opportunity to reflect on what's happened in the previous four years since we last rang that same bell. And I keep coming back to our key TMC motto, adapt or die. And it's not just that we've been able to adapt to a capital-led approach. It's not that we've been able to adapt to a new regulator.

Speaker #4: So the day was packed with meaningful conversations, including a deep dive into our partnerships with an exciting panel, including Edward and Stephanie Harrimer of Allseas, and Careers Inc. Chairman Yumbi Choi.

No mistake TMC is here to stay and we are just getting started.

Speaker #4: And in true TMC style, the evening ended on a high note, quite literally, with a spirited karaoke party. The strategy day also featured the ringing of the Nasdaq closing bell, which our Nasdaq rep said was one of the most enthusiastic and well-attended that they have ever had.

Another highlight of August fall was the release of our PFS on initial assessment.

Two documents with sign off from qualified persons showing a combined project net present value of more than $23 billion.

Speaker #4: And this moment gave me an opportunity to reflect on what what's happened in the previous four years since we last rang that same bell.

While also showing a clear capital efficient path to first production.

The PFS also included a world first reserves for individual projects.

Speaker #4: And I keep coming back to our key TMC motto: Adapt, or die. And it's not just that we've been able to adapt to a capital-light light approach.

Now I do know that there are some who may have been hoping for production sooner than Q4 2027 expected start date.

Speaker #4: It's not that we've been able to adapt to a new regulator; it's that amidst all of this adaptation, we've been able to keep the project moving forward while so many others have been stuck at zero.

Well first of all as anyone familiar with resorts investing will tell you Q4 2027 is right around the corner when talking about a multi decade project of this scale and value.

Gerard Barron: It's that amidst all of this adaption, we've been able to keep the project moving forward while so many others have been stuck at zero. And this now puts us in a unique position where we have a wide moat around the business, due in part to all of the project spending and historic milestones over the last 14 years, but also because we're one of the unique companies with competency in this new industry that can actually take the path offered by the existing US CBEAD mining code. Many others have no choice but to wait for the long-promised and never-delivered ISA mining code.

Speaker #4: And this now puts us in a unique position where we have a wide moat around the business, due in part to all of the project spending and historic milestones over the last 14 years.

It's also important to keep in mind that there has always been an anticipated ramp up period post permitting where modifications and mobilization with the hidden gem would be required prior to beginning commercial production.

Speaker #4: But also because we're one of the unique companies with competency in this new industry that can actually take the path offered by the existing U.S. seabed mining code.

And this anticipated ramp up period has always been expected by the research analysts who cover our stock.

Speaker #4: Many others have no choice but to wait for the long promised and never delivered ISA mining code. And I believe that the pace of our progress is only going to accelerate from here.

In fact last year in November when the share price was below a dollar we discussed the fact that we would not be making capital investment on the hidden gem until we had regulatory certainty.

Gerard Barron: And I believe that the pace of our progress is only going to accelerate from here, with a PFS in hand as the only commercially viable deep seabed resource opportunity in the next several years for any potential customers, commercial partners, and of course, public shareholders. Make no mistake, TMC is here to stay, and we are just getting started. Another highlight of August 4 was the release of our PFS and initial assessment, two documents with sign-offs from qualified persons showing a combined project net present value of more than $23 billion, while also showing a clear capital-efficient path to first production. The PFS also included a world-first reserves for a nodule project. Now, I do know that there are some who may have been hoping for production sooner than Q4 2027 expected start date.

Speaker #4: With a PFS in hand, as the only commercially viable deep seabed resource opportunity in the next several years, for any potential customers, commercial partners, and of course, public shareholders.

We're now excited to be ramping up this work again and without a partner oilseeds and instead of a sequence where that work begins after the granting of a permanent <unk>.

And the board so would expect to have the confidence to get moving and this is due to the signals and tangible progress coming to us from DC.

Speaker #4: Make no mistake, TMC is here to stay, and we are just getting started. Another highlight of August 4 was the release of our PFS, an initial assessment.

Not just to issue a permit but do it in a way that can be legally defensible for many decades to come.

Speaker #4: Two documents with sign-off from qualified persons showing a combined project net present value of more than $23 billion while also showing a clear capital-efficient path to first production.

So today's agenda first we will take you through a summary of all the amazing things that have happened in the last few months, including the strategic investment from <unk>, Inc.

Speaker #4: The PFS also included a world first, reserves for a nodule project. Now, I do know that there are some who may have been hoping for production sooner.

We've also renewed our partnerships with now ruined tomo reaffirming our shed science and rules based approach to delivering lasting benefits for the Pacific Nations, while building the secure critical mineral supply chains underpinning reindustrialization, good jobs and resilient economies.

Speaker #4: Then Q4 2027, expected start date. Well, first of all, as anyone familiar with resource investing will tell you, Q4 2027 is right around the corner when talking about a multi-decade project of this scale and value.

Gerard Barron: Well, first of all, as anyone familiar with resource investing will tell you, Q4 2027 is right around the corner when talking about a multi-decade project of this scale and value. It's also important to keep in mind that there has always been an anticipated ramp-up period post-permitting, where modifications and mobilization with the hidden gem would be required prior to beginning commercial production. And this anticipated ramp-up period has always been expected by the research analysts who cover our stock. Back last year in November, when the share price was below a dollar, we discussed the fact that we would not be making capital investment on the hidden gem until we had regulatory certainty. We're now excited to be ramping up this work again and with our partner Allseas.

I will then discuss our cadence of regular predictable progress at Noah, including all noticed this week of full compliance on our exploration applications and I'll, then turn it over to Craig to discuss the PFS TIAA and our financials.

Speaker #4: It's also important to keep in mind that there has always been an anticipated ramp-up period post-permitting, during which modifications and mobilization with the hidden gem would be required prior to beginning commercial production.

Well Im happy to again report that we have renewed and strengthened our agreements with both the Republic of number and the kingdom of tomo, a longstanding sponsoring the states who have led from the front since the beginning and these updated agreements reaffirm our shared commitment to our science rules based approach to developing this new industry.

Speaker #4: And this anticipated ramp-up period has always been expected by the research analysts who cover our stock. Back last year in November, when the share price was below a dollar, we discussed the fact that we would not be making capital investment on the hidden gem until we had regulatory certainty.

Setting a high bar for an environmental stewardship transparency and community benefit for.

Speaker #4: We're now excited to be ramping up this work again with our partner Allseas. Instead of a sequence where that work begins after the grant of a permit, we and the board soon expect to have the confidence to get moving.

Now Rune Tana. These partnerships are designed to deliver durable economic opportunities capacity building and long term revenues that can support generations to come.

Gerard Barron: And instead of a sequence where that work begins after the ground of a permit, we and the board soon expect to have the confidence to get moving. And this is due to the signals and tangible progress coming to us from DC, not just to issue a permit, but do it in a way that can be legally defensible for many decades to come. So today's agenda, first, we'll take you through a summary of all the amazing things that have happened in the last few months, including the strategic investment from Careers Inc. We've also renewed our partnerships with Nauru and Tonga, reaffirming our shared science and rules-based approach to delivering lasting benefits for the Pacific nations while building the secure critical mineral supply chains underpinning reindustrialization, good jobs, and resilient economies.

They provide the stable collaborative partnerships, we need to responsibly advance towards first production, while also contributing to U S and allied efforts to secure resilient supply of critical minerals.

Speaker #4: And this is due to the signals and tangible progress coming to us from DC. Not just to issue a permit, but do it in a way that can be legally defensible for many decades to come.

On a personal note I.

Very much enjoyed our meetings in D C with the now Rune delegation on August six and it was great to see the U S State Department recognize the strategic importance of that sponsoring state.

Speaker #4: So today's agenda, first, we'll take you through a summary of all the amazing things that have happened in the last few months, including the strategic investment from Careers Inc. We've also renewed our partnerships with Nauru and Tonga.

In June we announced a landmark strategic investment of $85 million from Korea zinc the world's largest smelter of.

Speaker #4: Reaffirming our shared science and rules-based approach to delivering lasting benefits for the Pacific nations while building the secure, critical mineral supply chains underpinning re-industrialization.

Nonferrous metals zinc is positioned to use tncs USA nodule derived materials to produce refined metals copper foil and P. Chem in their existing facilities in South Korea, and potentially build new facilities here in the USA.

Speaker #4: Good jobs and resilient economies. I will then discuss our cadence of regular predictable progress at NOAA, including our notice this week of full compliance on our exploration applications.

Gerard Barron: I will then discuss our cadence of regular predictable progress at NOAA, including our notice this week of full compliance on our exploration applications. And I'll then turn it over to Craig to discuss the PFS, DIA, and our financials. Well, I'm happy to again report that we have renewed and strengthened our agreements with both the Republic of Nauru and the Kingdom of Tonga, our long-standing sponsoring states who have led from the front since the beginning. And these updated agreements reaffirm our shared commitment to a science rules-based approach to developing this new industry, setting a high bar for environmental stewardship, transparency, and community benefit. For Nauru and Tonga, these partnerships are designed to deliver durable economic opportunities, capacity building, and long-term revenues that can support generations to come.

To further that ambition in August traveled to DC with chairman Joy.

Speaker #4: And I'll then turn it over to Craig to discuss the PFS, DIA, and our financials. Well, I'm happy to again report that we have renewed and strengthened our agreements with both the Republic of Nauru and the Kingdom of Tonga.

Among others, we met with David Copley, the President's critical minerals are to discuss securing domestic supply chains and advancing use mineral independents and.

Speaker #4: Our long-standing sponsoring states who have led from the front since the beginning. And these updated agreements reaffirm our shared commitment to a science rules-based approach to developing this new industry.

And I look forward to another visit with Korea zinc on their home turf. This September as we push on bringing additional investment into the United States.

This quarter, we welcomed Michael Hess and Alex Faro to the TMC Board two highly connected leaders, who has experience spans global energy Finance law and high Stakes negotiation.

Speaker #4: Setting a high bar for environmental stewardship, transparency, and community benefit. For Nauru and Tonga, these partnerships are designed to deliver durable economic opportunities, capacity building, and long-term revenues that can support generations to come.

Michael has spent time at Goldman Sachs and KKR and now heads the has suddenly corporation and brings deep relationships across government and industry that will help accelerate our access to capital and strategic partnerships and of course, the Hess family are recognized as one of the great industrial Giants in the United.

Gerard Barron: They provide the stable, collaborative partnerships we need to responsibly advance towards first production, while also contributing to US and allied efforts to secure resilient supplies of critical minerals. On a personal note, I very much enjoyed our meetings in DC with the Nauru and delegation on August 6th, and it was great to see the US State Department recognize the strategic importance of our sponsoring state. In June, we announced a landmark strategic investment of $85 million from Careers Inc., the world's largest smelter of non-ferrous metals. Careers Inc. is positioned to use TMC's USA nodule-derived materials to produce refined metals, copper foil, and PCAM in their existing facilities in South Korea and potentially build new facilities here in the USA. To further that ambition, in August, I traveled to DC with Chairman Choi.

Speaker #4: They provide the stable, collaborative partnerships we need to responsibly advance towards first production. While also contributing to US and allied efforts to secure resilient supplies of critical minerals.

Speaker #4: On a personal note, I was I very much enjoyed our meetings in DC with the Nauru and delegation. On August 6, and it was great to see the US State Department recognize the strategic importance of our sponsoring state.

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Ill expiry, one of America's most prominent trial lawyers and strategic advisors as represented some of the biggest names in the business and technology and his insight and network will be invaluable as we navigate the complex intersection of policy markets and innovation.

Speaker #4: In June, we announced a landmark strategic investment of $85 million from Careers Inc., the world's largest smelter of of non-ferrous metals. Careers Inc. is positioned to use TMC's USA nodule-derived materials to produce refined metals, copper foil, and PCAM in their existing facilities in South Korea, and potentially build new facilities here in the USA.

And together this board combines unmatched vision credibility and connections given TMC the strategic edge, we need to move Norrie D into production.

This quarter, we continued methodically moving the regulatory ball forward under the U S deep sea bed hub mineral Resources Act.

Speaker #4: To further that ambition, in August, I traveled to DC with Chairman Choi among others. We met with David Copley, the president's critical minerals czar, to discuss securing domestic supply chains and advancing US mineral independence.

Clear enforceable framework that gives us visibility and confidence in our path to production.

Gerard Barron: Among others, we met with David Copley, the president's critical minerals czar, to discuss securing domestic supply chains and advancing US mineral independence. And I look forward to another visit with Careers Inc. on their home turf this September as we push on bringing additional investment into the United States. This quarter, we welcomed Michael Hess and Alex Spiro to the TMC board, two highly connected leaders whose experience spans global energy, finance, law, and high-stakes negotiation. Michael Hess spent time at Goldman Sachs and KKR and now heads the Hess Family Corporation and brings deep relationships across government and industry that will help accelerate our access to capital and strategic partnerships. And of course, the Hess family are recognized as one of the great industrial giants in the United States.

It's not always quick enough for everyone, but just take a step back on how fast. These milestones have been achieved since the initial initial applications were submitted just a few months ago.

Speaker #4: And I look forward to another visit with Careers Inc. on their home turf this September as we push on bringing additional investment into the United States.

In April application submissions in May substantial compliance on the exploration license applications and then July proposed amendments to <unk> to expedite the process and on August 12, Noah confirmed full compliance for our exploration license applications. Another.

Speaker #4: This quarter, we welcomed Michael Hess and Alex Firo to the TMC board to highly connected leaders whose experience spans global energy, finance, law, and high-stakes negotiation.

Speaker #4: Michael Hess spent time at Goldman Sachs and KKR and now heads the Hess family corporation. And brings deep relationships across government and industry that will help accelerate our access to capital and strategic partnerships.

Important milestone that validates the thoroughness of our submission and moves us to the next stage in the process and I'm pleased to say that Noah has begun the process of certifying. These applications 100 day process that started on July 27 on July 28.

Speaker #4: And of course, the Hess family are recognized as one of the great industrial giants in the United States. Alex Firo, one of the America's most prominent trial lawyers and strategic advisors, has represented some of the biggest names in the business and technology and his insight and network will be invaluable as we navigate the complex intersection of policy, markets, and innovation.

Gerard Barron: Alex Spiro, one of America's most prominent trial lawyers and strategic advisors, has represented some of the biggest names in the business and technology, and his insight and network will be invaluable as we navigate the complex intersection of policy, markets, and innovation. And together, this board combines unmatched vision, credibility, and connections, giving TMC the strategic edge we need to move NORI-D into production. This quarter, we continued methodically moving the regulatory ball forward under the US Deep Seabed Hard Mineral Resources Act, a clear enforceable framework that gives us visibility and confidence in our path to production. I know it's not always quick enough for everyone, but just take a step back on how fast these milestones have been achieved since the initial applications were submitted just a few months ago.

Each regulatory milestone de risks the project and strengthens the investment case, and we are systematically progressing through a transparent U S regulatory process.

And with a clear path ahead toward first production from <unk> in Q4 2027.

Speaker #4: And together, this board combines unmatched vision, credibility, and connections, giving TMC the strategic edge we need to move Nori D. into production. This quarter, we continued methodically moving the regulatory ball forward under the US deep seabed hard mineral resources act.

So we're also looking forward to this administration's proposed amendments to streamline permitting.

<unk> supported guidance from senior officials underscore in the U S government's intent to lead into production and processing of deep sea bed critical minerals.

The public comment period on these amendments will be concluded on September five this year.

Speaker #4: A clear, enforceable framework that gives us visibility and confidence in our path to production. I know it's not always quick enough for everyone, but just take a step back and consider how fast these milestones have been achieved since the initial applications were submitted just a few months ago.

And in contrast to nose, great progress in the last several months I'd like to acknowledge that the ISI finished their 30th session. This July.

DSA Kohls continues to keep calling for regulations that.

Doesn't seem to be particularly interested in delivering those regulations keep in mind that Noah had pioneered deep sea environmental research and had put in place working regulations prior to the RSA.

Gerard Barron: In April, application submissions; in May, substantial compliance on the exploration license applications; and in July, proposed amendments to DISHMRA to expedite the process. And on August 12, NOAA confirmed full compliance for our exploration license applications, another important milestone that validates the thoroughness of our submission and moves us to the next stage in the process. And I'm pleased to say that NOAA has begun the process of certifying these applications, a 100-day process that started on July 27 and July 28. Each regulatory milestone de-risks the project and strengthens the investment case. And we are systematically progressing through a transparent US regulatory process and with a clear path ahead toward first production from NORI-D in Q4 2027.

Speaker #4: In April, application submissions in May substantial compliance on the exploration license applications. And in July, proposed amendments to DISHMRA to expedite the process. And on August 12, NOAA confirmed full compliance for our exploration license applications.

Heather the informed.

So on that note I would like to turn the call over to our Chief Financial Officer, Greg Jesse.

Speaker #4: Another important milestone that validates the thoroughness of our submissions and moves us to the next stage in the process. And I'm pleased to say that NOAA has begun the process of certifying these applications.

Thank you Derek.

For those in attendance or for those who have reviewed the presentation. During strategy day, a lot of this is going to be familiar but theres quite a bit of detail. So I'm now happy to go through some of the key points in our historic landmark pre feasibility study and initial assessments in deeper detail.

Speaker #4: A hundred-day process that started on July 27 and July 28. Each regulatory milestone derisks the project and strengthens the investment case. And we are systematically progressing through a transparent US regulatory process.

Project Economics studies come in three levels of increasing confidence in the initial assessment, which gives you a sense of what the product could be within the broadband of plus or minus 50% cost us with accuracy. We produced Nia in March 2021 over the northern area of.

Speaker #4: And with a clear path ahead, toward first production from Nori D. in Q4 2027. So we're also looking forward to this administration's proposed amendments to streamline permitting, and supportive guidance from senior officials underscoring the US government's intent to lead in the production and processing of deep seabed critical minerals.

A pre feasibility study gives you a sense of what the project should be and then narrows that accuracy to within 25% and <unk>.

Gerard Barron: So we're also looking forward to this administration's proposed amendments to streamline permitting and supportive guidance from senior officials underscoring the US government's intent to lead in the production and processing of deep seabed critical minerals. The public comment period on these amendments will be concluded on September 5 this year. And in contrast to NOAA's great progress in the last several months, I'd like to acknowledge that the ISA finished their 30th session this July. The ISA continues to keep calling for regulations but doesn't seem to be particularly interested in delivering those regulations. Keep in mind that NOAA had pioneered deep sea environmental research and had put in place working regulations prior to the ISA ever being formed. So on that note, I would like to turn the call over to our Chief Financial Officer, Craig Shesky.

Last is the feasibility study that describes what the project will be with an even tighter cost accuracy band and that's off of the basis for project finance.

So on August 4th we published two new studies of PFS for Nori Dee.

Speaker #4: The public comment period on these amendments will be concluded on September 5. This year. And in contrast to NOAA's great progress in the last several months, I'd like to acknowledge that the ISA finished their 30th session this July.

And our new IAA that covers the rest of the resource and Norrie and Tommy.

Together. These two studies should give you a good sense of what our first project should be minority area and what the rest of the resource can be in terms of economics.

So taking a step back and looking at the geographical areas that each study covers the PFS covers already covers everything else, but neither study covers the additional ground, but we've applied for under the U S law, where we know we have priority right and our management team estimates. These areas to have approximately 300 million tons of exploration potential given the proximity.

Speaker #4: The ISA continues to call for regulations but doesn't seem to be particularly interested in delivering those regulations. Keep in mind that NOAA had pioneered deep-sea environmental research and had put in place working regulations prior to the ISA ever being formed.

<unk> and tomo areas, where we do have quite a bit of exploration data.

So the results as of the Middle of 2025 total combined project.

Speaker #4: So on that note, I would like to turn the call over to our chief financial officer, Craig Shesky.

$1 billion.

Craig Shesky: Thank you, Gerard. For those in attendance or for those who have reviewed the presentation during strategy day, a lot of this is going to be familiar, but there was quite a bit of detail. So I'm now happy to go through some of the key points in our historic landmark pre-feasibility study and initial assessment in deeper detail. Project economic studies come at three levels of increasing confidence: an initial assessment, which gives you a sense of what the project could be within a broad band of plus or minus 50% cost estimate accuracy. We produced an IA in March 2021 over the NORI-D area. A pre-feasibility study gives you a sense of what the project should be and then narrows that accuracy to within 25%.

Comprised of an NPV of $5 five.

Speaker #3: Thank you, Jared. For those in attendance, or for those who have reviewed the presentation during Strategy Day, a lot of this is going to be familiar.

$1 billion.

An additional $18 1 billion on MTV for everything else.

Speaker #3: But there's quite a bit of detail, so I'm now happy to go through some of the key points in our historic landmark pre-feasibility study and initial assessment in deeper detail.

Zoom in a little bit on the feasibility study or PFS, yes.

The estimated amount of recoverable modules for this study is $164 million wet tonnes assume production start date as Q4 2027 with a life of mine just over 18 years annual production and steady state was model that $10 8 million tons of what nodules and steady state for the PFS is defined as the year is 2031 through 2043.

Speaker #3: Project economic studies come in three levels of increasing confidence, and initial assessment, which gives you a sense of what the project could be, within a broad band of plus or minus 50% cost estimate accuracy.

Speaker #3: We produced an IA in March 2021 over the Nori D. area. A pre-feasibility study gives you a sense of what the project should be and then narrows that accuracy to within 25%.

Offshore this level of steady state production is going to require for converted drillships and onshore, we assume processing and existing Archie RK Es retail electric arc furnaces in Asia, and then building refining capacity in the United States.

Craig Shesky: And last is the feasibility study that describes what the project will be with an even tighter cost accuracy band, and that's often the basis for project finance. So on August 4th, we published two new studies: a PFS for NORI-D and a new IA that covers the rest of the resource in NORI and Tonga. Together, these two studies should give you a good sense of what our first project should be in the NORI-D area and what the rest of the resource can be in terms of economics. So taking a step back and looking at the geographical areas that each study covers, the PFS covers NORI-D, the IA covers everything else, but neither study covers the additional ground that we've applied for under the US law where we know we have priority right.

Speaker #3: And last is the feasibility study that describes what the project will be, with an even tighter cost accuracy band, and that's often the basis for project finance.

We expect to start relatively small towards the end of 2007.

Speaker #3: So, on August 4, we published two new studies: a PFS for Nori D. and a new IA that covers the rest of the resource in Nori and Tonga.

Or actually remained flat capacity.

Before adding a second vessel in 2030, and then ramping up to steady state with four vessels by 2031, hitting our nameplate capacity of 12 million tons per year and a few of years of production, but again on average during that steady state $10 8 million tonnes per annum.

Speaker #3: Together, these two studies should give you a good sense of what our first project should be in the Nori D. area and what the rest of the resource can be, in terms of economics.

Speaker #3: So taking a step back and looking at the geographical areas that each study covers. The PFS covers Nori D. The IA covers everything else.

We expect to generate almost $600 per dry tonic nodules during steady state production.

Speaker #3: But neither study covers the additional ground that we've applied for under the US law, where we know we have priority right. And our management team estimates these areas to have approximately 300 million tons of exploration potential, given the proximity to Nori D.

As one might expect it's not a smooth line prior to the construction of U S refineries the revenue per dry tonne will be a bit lower a bit less than $500 per ton. In 2032. For example, and then by the end of the 2000 <unk> with two U S refineries running expected revenue per ton is approximately $640 overall.

Craig Shesky: And our management team estimates these areas to have approximately 300 million tons of exploration potential, given the proximity to NORI-D and Tonga areas where we do have quite a bit of exploration data. So the results as of the middle of 2025, a total combined project billion dollars comprised of an NPV of 5.5 billion on that, an additional 18.1 billion on NPV for everything else. So let's zoom in a little bit on the feasibility study or PFS. The estimated amount of recoverable nodules for this study is 164 million wet tons. Assumed production start date is Q4 2027, with a life of mine just over 18 years. Annual production in steady state was modeled at 10.8 million tons of wet nodules, and steady state for the PFS is defined as the years 2031 through 2043.

Speaker #3: and Tonga areas where we do have quite a bit of exploration data. So the results, as of the middle of 2025, a total combined project billion dollars, comprised of an NPV of 5.5 billion of that, an additional 18.1 billion on NPV for everything else.

Overall, the revenue mix is expected to be quite similar to what we shared with the market over the last several years based on the initial assessment on the <unk> from 2021, 45% of revenue coming from nickel products, 28% for manganese, 17% from copper and a 9% cobalt is the smallest contributor to revenue.

Speaker #3: So let's zoom in a little bit on the feasibility study, or PFS. The estimated amount of recoverable nodules for this study is 164 million wet tons.

So where does all of that put TMC on the cost curve.

Speaker #3: Assuming production start date is Q4 2027, with a life of mine just over 18 years. Annual production and steady state was modeled at 10.8 million tons of wet nodules, and steady state for the PFS is defined as the year's 2031 through 2043.

Well, including the valuable byproducts, which are estimated to account for about 55% of total revenue our C. One nickel cash costs or just over $1000 per ton and thats all over the nearly all producers outside of Russia, including those Indonesian producers even on an all in sustaining cost basis, our nickel costs, including byproduct credits will be just over $2 five.

Craig Shesky: Offshore, this level of steady state production is going to require four converted drill ships, and onshore, we assume processing in existing RKEFs, rotary can electric arc furnaces in Asia, and then building refining capacity in the United States. We expect to start relatively small towards the end of 2027, then gradually re-nameplate capacity for before adding a second vessel in 2030, and then ramping up to steady state with four vessels by 2031, hitting our nameplate capacity of 12 million tons per year in a few of the years of production, but again, on average, during that steady state, 10.8 million tons per annum. We expect to generate almost $600 per dry ton of nodules during steady state production. As one might expect, it's not a smooth line.

Speaker #3: Offshore, this level of steady state production is going to require four converted drill ships, and onshore, we assume processing in existing RKEFs, rotary kiln electric arc furnaces in Asia, and then building refining capacity in the United States.

$5000 per ton <unk>.

Said simply we will be profitable in nearly any nickel price environment.

With steady state revenue per dry tonne of just under $600 and opex per tonne of $340, which also accounts for corporate overhead and royalties. We arrive at our EBITA margin per ton expected to be about 43% or $254 per ton during the steady state here is defined as 2031% to 2043 during.

Speaker #3: We expect to start relatively small towards the end of 2027, then gradually rethink the capacity before adding a second vessel in 2030, and then ramping up to steady state with four vessels by 2031, hitting our nameplate capacity of 12 million tons per year in a few of the years of production, but again, on average, during that steady state, 10.8 million tons per annum.

That time of course, we expect to transition from mainly selling maturation to them selling higher value refined products like nickel sulphate, cobalt sulfate and copper cathode and the United States. So the early 2000, <unk> would see EBITDA margins in the low thirty's, but by 2040% EBITDA margin is closer to 50% and this anticipated ramp up in <unk>.

Speaker #3: We expect to generate almost $600 per dry ton of nodules during steady state production. As one might expect, it's not a smooth line. Prior to the construction of US refineries, the revenue per dry ton will be a bit lower, a bit less than $500 per ton in 2032 for example.

Craig Shesky: Prior to the construction of US refineries, the revenue per dry ton will be a bit lower, a bit less than $500 per ton in 2032, for example. And then by the end of the 2030s, with two US refineries running, expected revenue per ton is approximately $640. Overall, the revenue mix is expected to be quite similar to what we shared with the market over the last several years based on the initial assessment on NORI-D from 2021. 45% of revenue coming from nickel products, 28% from manganese, 17% from copper, and a 9% cobalt is the smallest contributor to revenue. So where does all of that put TMC on the cost curve? Well, including the valuable byproducts, which are estimated to account for about 55% of total revenue, our C1 nickel cash costs are just over $1,000 per ton.

Profitability makes it worthwhile to spend on the onshore refinery capex. After we begin production, while also taking a huge step towards helping us establish mineral independents.

Speaker #3: And then by the end of the 2030s, with two US refineries running, expected revenue per ton is approximately $640. Overall, the revenue mix is expected to be quite similar to what we shared with the market over the last several years, based on the initial assessment on Nori D.

So how are we going to develop a commercially viable operations.

The March 2021 initial assessment for Laurie do you envision a $7 billion of upfront Capex of which $2 2 billion was for offshore vessel Capex with a pre feasibility study we've been able to bring that offshore preproduction number down to less than $500 million for the offshore component and where possible. We've assumed contracting services, we need and only deploy <unk>.

Speaker #3: from 2021. 45% of revenue coming from nickel products, 28% from manganese, 17% from copper, and a 9% cobalt is the smallest contributor to revenue.

Speaker #3: So where does all of that put TMC on the cost curve? Well, including the valuable byproducts, which are estimated to account for about 55% of total revenue, our C1 nickel cash costs are just over $1,000 per ton.

Capex were without deploying capex ourselves, we wouldn't be able to get the service and as a result of our development Capex assumes for $4 4 billion onshore for construction of the refining capacity to match. The offshore production. This approach ensures that we can deliver critical products to the U S. As contemplated by newer regulations, while significantly <unk>.

Craig Shesky: That's lower than nearly all producers outside of Russia, including most Indonesian producers. Even on an all-in sustaining cost basis, our nickel costs, including byproduct credits, would be just over $2,500 per ton. Said simply, we will be profitable in nearly any nickel price environment. With steady state revenue per dry ton of just under $600 and OPEX per ton of $340, which also accounts for corporate overhead and royalties, we arrive at our EBITDA margin per ton expected to be about 43% or $254 per ton during the steady state years defined as 2031 to 2043. During that time, of course, we expect to transition from mainly selling match from Asia to then selling higher-value refined products like nickel sulfate, cobalt sulfate, and copper cathode in the United States.

Speaker #3: And that's lower than nearly all producers outside of Russia, including most Indonesian producers. Even on an all-in sustaining cost basis, our nickel costs, including byproduct credits, would be just over $2,500 per ton.

Speaker #3: Said simply, we will be profitable in nearly any nickel price environment. With steady state revenue per dry ton of just under $600, and OPEX per ton of $340, which also accounts for corporate overhead and royalties, we arrive at our EBITDA margin per ton expected to be about 43%, or $254 per ton during the steady state years defined as 2031 to 2043.

<unk>, our payables by producing a higher value product again nickel sulphate cobalt sulfate before any U S. Refineries are built we have an opportunity to either give offtake to Korea zinc for alloy and Matt on the condition. The process materials are returned to the U S.

Or we control through their facility and return process materials to the U S ourselves.

Because we have not yet developed the definitive agreements with Korea zinc some of the production is left of the alloy unmet level and as far as the U S refining capacity well, we're aiming to build that together and many of the meetings that Jerry talked about in many that we expect to occur in the coming months are to give that effect, but as I said earlier this month or in the strategy day, we're not going to bite off.

Speaker #3: During that time, of course, we expect to transition from mainly selling mat from Asia to then selling higher value refined products like nickel sulfate, cobalt sulfate, and copper cathode in the United States.

Craig Shesky: So the early 2030s would see EBITDA margins in the low 30s, but by 2040, that EBITDA margin is closer to 50%. And this anticipated ramp-up in profitability makes it worthwhile to spend on the onshore refinery CAPEX after we begin production, while also taking a huge step towards helping the US establish mineral independence. So how are we going to develop these commercially viable operations? Well, the March 2021 initial assessment for NORI-D envisioned 7 billion of upfront CAPEX, of which 2.2 billion was for offshore vessel CAPEX. For the pre-feasibility study, we've been able to bring that offshore pre-production number down to less than 500 million for the offshore component. And where possible, we've assumed contracting the services we need and only deploying CAPEX where, without deploying CAPEX ourselves, we wouldn't be able to get the service.

Speaker #3: So the early 2030s would see EBITDA margins in the low 30s. But by 2040, that EBITDA margin is closer to 50%. And this anticipated ramp-up in profitability makes it worthwhile to spend on the onshore refinery CAPEX after we begin production, while also taking a huge step towards helping the US establish mineral independence.

Whether we can chew and we do expect to be in production and producing significant revenue prior to green lighting any such onshore spending in fact, approximately $4 2 billion of this $4 4 billion onshore Capex estimate is assumed to be spent in the 2000 <unk> well after we've been in production for some time generating significant revenue.

Speaker #3: So how are we going to develop these commercially viable operations? Well, the March 2021 initial assessment for Nori D. envisioned 7 billion of upfront CAPEX, of which 2.2 billion was for offshore vessel CAPEX.

Moving out to the initial assessment.

That second study shows the potential of the resource beyond north effectively the rest of new Oriental.

Speaker #3: For the pre-feasibility study, we've been able to bring that offshore pre-production number down to less than $500 million for the offshore component. Where possible, we've assumed contracting the services we need and only deploying CAPEX where, without deploying CAPEX ourselves, we wouldn't be able to get the service.

And the estimated amount of recoverable laundry rules for the initial assessment is 670 million tonnes wet.

Production start date is 2037 with a life of mine of 23 years. This initial assessment assumes contracted services offshore with a production vessels each equipped with three collectors at 20 meters. Each so putting it altogether, adding up the NPV of $18 1 billion for the IAA and $5 5 billion for the <unk>.

Craig Shesky: And as a result, our development CAPEX assumes for 4.4 billion onshore for construction of the refining capacity to match the offshore production. This approach ensures that we can deliver critical products to the US as contemplated by NOAA regulations, while significantly increasing our payables by producing a higher-value product, again, nickel sulfate, cobalt sulfate. Before any US refineries are built, we have an opportunity to either give offtake to Careers Inc. for our alloy and mat on the condition that process materials are returned to the US, or we can toll through their facility and return process materials to the US ourselves. Because we've not yet developed the definitive agreements with Careers Inc., some of the production is left at the alloy and mat level. And as far as the US refining capacity, well, we're aiming to build that together.

Speaker #3: And as a result, our development CAPEX assumes for 4.4 billion onshore for construction of the refining capacity to match the offshore production. This approach ensures that we can deliver critical products to the US as contemplated by NOAA regulations, while significantly increasing our payables by producing a higher value product, again, nickel sulfate, cobalt sulfate, before any US refineries are built, we have an opportunity to either give offtake to Careers Inc. for alloy and mat on the condition that process materials are returned to the US, or we can tool through their facility and return process materials to the US ourselves.

<unk> ability study we arrive at the total less than estimated resource NPV of $23 6 billion.

And over the life of both projects on an undiscovered basis revenue of approximately 369 billion and EBITDA in excess of 200 billion and a position in the first quartile of the cost curve that makes this model very difficult to break across any commodity cycle.

And yet despite the undeniable quality of size of this resource and are expect to position for the first quarter of the cost curve. We feel we remain undervalued compared to peer developers and explorers on the left side of this page you will see a TMC valuation example, which again this is purely for illustrative purposes, using a slight premium to the upper end of the nickel developer and explore evaluation.

Speaker #3: Because we've not yet developed the definitive agreements with Careers Inc., some of the production is left at the alloy and mat level. And as far as the U.S. refining capacity, well, we're aiming to build that together. Many of the meetings that Jared talked about, and many that we expect to occur in the coming months, are to give that effect.

Craig Shesky: And many of the meetings that Gerard talked about and many that we expect to occur in the coming months are to give that effect. But as I said earlier this month during the strategy day, we're not going to bite off more than we can chew. And we do expect to be in production and producing significant revenue prior to greenlighting any such onshore spending. In fact, approximately 4.2 billion of this 4.4 billion onshore CAPEX estimate is assumed to be spent in the 2030s, well after we've been in production for some time, generating significant revenue. Moving out to the initial assessment, that second study shows the potential of the resource beyond NORI-D, effectively the rest of NORI and Tonga. And the estimated amount of recoverable nodules for the initial assessment is 670 million tons wet.

Speaker #3: But as I said earlier this month during the strategy day, we're not going to bite off more than we can chew. We do expect to be in production and generating significant revenue prior to greenlighting any such onshore spending.

And you apply that to the PFS NPV of $5 5 billion, which keep in mind in that PFS, we expect to have a more defensible cost her position in generally lower capex per ton than many of those peers and then you add to that the average nickel developer explore evaluation multiplied by the initial assessment and PV you get to a total of.

Speaker #3: In fact, approximately $4.2 billion of this $4.4 billion onshore CAPEX estimate is assumed to be spent in the 2030s, well after we've been in production for some time, generating significant revenue.

Speaker #3: Moving out to the initial assessment, that second study shows the potential of the resource beyond Nori D. Effectively, the rest of Nori and Tonga.

Illustrative market value based on comps of approximately $10 billion, which would be over $20 per share.

From there you can see on the right side of this page what Nicola copper producers trader as a multiple of net asset value and this shows the potential for multiple expansion as production approaches and then begins.

Speaker #3: And the estimated amount of recoverable nodules for the initial assessment is 670 million tons wet. Assuming production start date is 2037, with a life of mine of 23 years.

Craig Shesky: Assumed production start date is 2037, with a life of mine of 23 years. This initial assessment assumes contracted services offshore with eight production vessels, each equipped with three collectors at 20 meters each. So putting it all together, adding up the NPV of 18.1 billion for the IA and 5.5 billion for the pre-feasibility study, we arrive at a total estimated resource NPV of $23.6 billion. And over the life of both projects, on an undiscounted basis, revenue of approximately $369 billion, an EBITDA in excess of $200 billion, and a position in the first quartile of the cost curve that makes this model very difficult to break across any commodity cycle. And yet, despite the undeniable quality and size of this resource and our expected position in the first quartile of the cost curve, we feel we remain undervalued compared to peer developers and explorers.

So moving on to our liquidity profile at June 30, TMC had pro forma cash of approximately $120 million now the headlines in our filings from both our press release and our 10-Q was $115 8 million, but then $120 million of crudes be final registered direct offering proceeds warrant exercises and.

Speaker #3: This initial assessment assumes contracted services offshore, with eight production vessels, each equipped with three collectors at 20 meters each. So, putting it all together, adding up the NPV of $18.1 billion for the IA and $5.5 billion for the pre-feasibility study, we arrive at the total estimated resource NPV of $23.6 billion.

Secured credit facility payments made just a few days after quarter end. So by July 4th there was a $120 million and as we disclosed last quarter. Our S. Three shelf registration statement capacity has been used in current ATM expires in the fourth quarter of this year. So again TNC expects to refresh the S. Three and ATM before year end as a matter of good corporate housekeeping.

Speaker #3: And over the life of both projects, on an undiscounted basis, revenue of approximately 369 billion, an EBITDA on excess of 200 billion, and a position in the first quartile of the cost curve that makes this model very difficult to break across any commodity cycle.

Speaker #3: And yet, despite the undeniable quality and size of this resource, and our expected position in the first quartile of the cost curve, we feel we remain undervalued compared to peer developers and explorers.

The ATM was last used on April 17th 2025, and this was prior to the second quarter strategic capital raises.

Onto the financial results.

Craig Shesky: On the left side of this page, you'll see a TMC valuation example, which again is purely for illustrative purposes. Using a slight premium to the upper end of the nickel developer and explorer valuations, and you apply that to the PFS NPV of 5.5 billion, which keep in mind, in that PFS, we expect to have a more defensible cost curve position and generally lower CAPEX per ton than many of those peers. And then you add to that the average nickel developer explorer valuation multiplied by the initial assessment NPV, you get to a total illustrative market value based on comps of approximately $10 billion, which would be over $20 per share. From there, you can see on the right side of this page what nickel or copper producers trade at as a multiple of net asset value.

Speaker #3: On the left side of this page, you'll see a TMC valuation example which, again, is purely for illustrative purposes. Using a slight premium to the upper end of the nickel developer and explorer valuations, and you apply that to the PFS NPV of 5.5 billion, which, keep in mind, in that PFS, we expect to have a more defensible cost curve position and generally lower CAPEX per ton than many of those peers.

In the second quarter of 2025, TMT reported a net loss of $74 3 million or <unk> 20 per share compared to a net loss of $20 2 million or <unk> <unk> per share for the same period of 2024.

The net loss for the second quarter of 2025 included exploration and evaluation expenses of $10 $5 million versus $12 4 million in Q2, 2020 for general and administrative expenses of $11 5 million versus $7 9 million in Q2, 2024, and other items totaling $52 3 million versus a slight gain.

Speaker #3: And then you add to that the average nickel developer explorer valuation multiplied by the initial assessment NPV. You get to a total illustrative market value based on comps of approximately $10 billion, which would be over $20 per share.

In Q2 2024.

Exploration and evaluation expenses decreased by $1 9 million in the second quarter of 2025 compared to the same period in 2024, primarily due to a decrease in mining technological and process development activities, partially offset by an increase in share based comp due to the amortization of the fair value of restricted stock units and options granted to officer.

Speaker #3: From there, you can see on the right side of this page what nickel or copper producers trade at as a multiple of net asset value.

Craig Shesky: And this shows the potential for multiple expansion as production approaches and then begins. So moving on to our liquidity profile, at June 30, TMC had pro forma cash of approximately $120 million. Now, the headline in our filings from both our press release and our 10Q was $115.8 million, but that $120 million includes the final registered direct offering proceeds, warrant exercises, and unsecured credit facility payments made just a few days after quarter end. So by July 4th, it was $120 million. And as we disclosed last quarter, our S3 shelf registration statement capacity has been used, and current ATM expires in the fourth quarter of this year. So again, TMC expects to refresh the S3 and ATM before year end as a matter of good corporate housekeeping. The ATM was last used on April 17, 2025, and this was prior to the second quarter strategic capital raises.

Speaker #3: And this shows the potential for multiple expansion as production approaches and then begins. So, moving on to our liquidity profile, at June 30, TMC had pro forma cash of approximately $120 million.

In the second quarter of 2024.

Speaker #3: Now, the headline in our filings from both our press release and our 10-Q was 115.8 million, but that 120 million includes the final registered direct offering proceeds, warrant exercises, and unsecured credit facility payments made just a few days after quarter end.

G&A expenses increased by $3 6 million in the second quarter of 2025 compared to the second quarter of 2024, mainly due to an increase in share based compensation as a result of the amortization of the fair value of Rs use and options granted to directors and officers in the second quarter of last year as well as an increase in consulting costs pursuant to the U S.

Speaker #3: So by July 4, it was 120 million. And as we disclosed last quarter, our S3 shelf registration statement capacity has been used. And current ATM expires in the fourth quarter of this year.

Regulatory path and other financing activities.

Other items significantly impacted the net loss in the second quarter of 2025 include the now reward costs change in the fair value of warrant liability and foreign exchange movements.

Speaker #3: So again, TMC expects to refresh the S3 and ATM before year-end as a matter of good corporate housekeeping. The ATM was last used on April 17, 2025, and this was prior to the second quarter strategic capital raises.

Moving on to free cash flow the.

Free cash flow for the second quarter of 2025 was negative $10 7 million compared to negative $12 2 million in the second quarter of 2024.

Craig Shesky: On to the financial results. In the second quarter of 2025, TMC reported a net loss of $74.3 million or $0.20 per share, compared to a net loss of $20.2 million or $0.06 per share for the same period 2024. The net loss for the second quarter of 2025 included exploration and evaluation expenses of $10.5 million versus $12.4 million in Q2 2024, general administrative expenses of $11.5 million versus $7.9 million in Q2 2024, and other items totaling $52.3 million versus a slight gain in Q2 2024.

Speaker #3: Onto the financial results. In the second quarter of 2025, TMC reported a net loss of 74.3 million dollars, or 20 cents per share, compared to a net loss of 20.2 million, or 6 cents per share, for the same period 2024.

Cash used in operating activities was $10 7 million.

For the second quarter, primarily due to higher payments to campaign eight vendors in the comparative period and this was partially offset by an increase in environmental payments free cash flow is a non-GAAP measure and I would like to point you to the non-GAAP reconciliation table included in the slide deck on our website.

Speaker #3: The net loss for the second quarter of 2025 included exploration and evaluation expenses of 10.5 million, versus 12.4 million dollars in Q2 2024. General administrative expenses of 11.5 million dollars, versus 7.9 million dollars in Q2 2024.

We do believe that the cash on hand is going to be more than sufficient to meet working capital and capex requirements for at least the next 12 months from today.

Speaker #3: And other items totaling $52.3 million, versus a slight gain in Q2 2024. Exploration and evaluation expenses decreased by $1.9 million in the second quarter of 2025, compared to the same period in 2024, primarily due to a decrease in mining, technological, and process development activities, partially offset by an increase in share-based compensation due to the amortization of the fair value of restricted stock units and options granted to officers in the second quarter of 2024.

In the first half of 2025 of course, we had a significant increase in the cash balance following the receipt of funds of $85 2 million from the Korea zinc partnership 35 million net proceeds from the registered direct offering.

Craig Shesky: Exploration and evaluation expenses decreased by $1.9 million in the second quarter of 2025 compared to the same period in 2024, primarily due to a decrease in mining, technological, and process development activities, partially offset by an increase in share-based comp due to the amortization of the fair value of restricted stock units and options granted to officers in the second quarter of 2024. G&A expenses increased by $3.6 million in the second quarter of 2025 compared to the second quarter of 2024, mainly due to an increase in share-based compensation as a result of the amortization of the fair value of RSUs and options granted to directors and officers in the second quarter of last year, as well as an increase in consulting costs pursuant to the US regulatory path and other financing activities.

14, $8 8 million from the ATM use in the first half of the year and $6 9 million from various stock option and warrant exercises.

Portion of these proceeds was used to repay the $7 $5 million all six working capital loan along with outstanding interest prior to its maturity.

Speaker #3: G&A expenses increased by 3.6 million in the second quarter of 2025, compared to the second quarter of 2024, mainly due to an increase in share-based compensation, as a result of the amortization of the fair value of RSUs and options granted to directors and officers in the second quarter of last year.

Our accounts payable and accrued liabilities balance as at June 32025 was $47 1 million and this includes $32 $4 million, which is also used for various services provided again, the majority of which can be settled in equity at TMC is discretionary.

Speaker #3: As well as an increase in consulting costs pursuant to the U.S. regulatory path and other financing activities. Other items significantly impacting the net loss in the second quarter of 2025 include the Nauru warrant costs, change in the fair value of warrant liability, and foreign exchange movements.

The significant increase in warrant liability is due to the increase in fair value of private warrants, reflecting the significant increase in the company's share price. So with that operator, we will turn it back over to you and take some questions from those on the line.

Craig Shesky: Other items significantly impacted the net loss in the second quarter of 2025 include the Nauru warrant costs, change in the fair value of warrant liability, and foreign exchange movements. Moving on to free cash flow, the free cash flow for the second quarter of 2025 was negative $10.7 million compared to negative $12.2 million in the second quarter of 2024. Net cash used in operating activities was $10.7 million for the second quarter, primarily due to higher payments to campaign eight vendors in the comparative period. And this was partially offset by an increase in environmental payments. Free cash flow is a non-GAAP measure, and I would like to point you to the non-GAAP reconciliation table included in the slide deck on our website.

As a reminder, if you'd like to ask a question at this time. Please press star one one on your Touchtone phone and wait for your name to be announced.

Speaker #3: Moving on to free cash flow, the free cash flow for the second quarter of 2025 was negative 10.7 million, compared to negative 12.2 million in the second quarter of 2024.

Draw. Your question. Please press star one again.

Speaker #3: Net cash used in operating activities was $10.7 million for the second quarter, primarily due to higher payments to Campaign 8 vendors in the comparative period.

Please standby, while we compile the Q&A roster.

Speaker #3: And this was partially offset by an increase in environmental payments. Free cash flow is a non-GAAP measure, and I would like to point you to the non-GAAP reconciliation table included in the slide deck on our website.

Our first question comes from Jack Zukowski with Alliance Global partners.

Craig Shesky: We do believe that the cash on hand is going to be more than sufficient to meet working capital and CAPEX requirements for at least the next 12 months from today. In the first half of 2025, of course, we had a significant increase in the cash balance following the receipt of funds of $85.2 million from the Careers Inc. partnership, $35 million net proceeds from the registered direct offering, $14.8 million from the ATM use in the first half of the year, and $6.9 million from various stock option and warrant exercises. A portion of these proceeds was used to repay the $7.5 million Allseas working capital loan, along with outstanding interest prior to its maturity.

Hey, Jared and Craig Thanks for taking the questions of course, Hey, Jake how are you.

Speaker #3: We do believe that the cash on hand is going to be more than sufficient to meet working capital and CAPEX requirements for at least the next 12 months from today.

Thank you.

So now that the PFS is how can you just comment or provide some color on what work needs to be done in order to get through with a feasibility level and maybe the timeline there.

Speaker #3: In the first half of 2025, of course, we had a significant increase in the cash balance, following the receipt of funds of 85.2 million from the Careers Inc. partnership, 35 million net proceeds from the registered direct offering, 14.8 million from the ATM use in the first half of the year, and 6.9 million from various stock option and warrant exercises.

Yes look I think the biggest thing that we're going to focus on is getting to our final agreement with our partner <unk> now.

Speaker #3: A portion of these proceeds was used to repay the 7.5 million Allseas working capital loan, along with outstanding interest prior to its maturity. Our accounts payable and accrued liabilities balance as of June 30, 2025, was 47.1 million.

Now that we see a clear regulatory path through the United States. The next step is really not just focusing on feasibility, but getting ourselves to the.

Craig Shesky: Our accounts payable and accrued liabilities balance as at June 30, 2025 was $47.1 million, and this includes $32.4 million owed to Allseas for various services provided, again, the majority of which can be settled in equity at TMC's discretion. The significant increase in warrant liability is due to the increase in the fair value of private warrants, reflecting the significant increase in the company's share price. So with that, operator, we'll turn it back over to you and take some questions from those on the line.

The investment decision to begin ordering some of the longer lead time items to allow us to hit our target of Q4 2020 sulfur production day. So its been this interesting dance this balance between not wanting to spend too early certainly when with TMC valuation was much lower but now that we see clarity.

Speaker #3: And this includes 32.4 million owed to Allseas for various services provided, again, the majority of which can be settled in equity at TMC's discretion.

Speaker #3: The significant increase in warrant liability is due to the increase in the fair value of private warrants, reflecting the significant increase in the company's share price.

Speaker #3: So with that, operator, we'll turn it back over to you and take some questions from those on the line.

Making sure that we give sufficient ammo or not.

And not just to also use not just ourselves not just to the board, but also to the market to make clear that we expect the permit to be coming and therefore, it makes sense to begin spending a little bit to get that production system ready to go. So I would say that's probably the number one important point.

Liz: As a reminder, if you'd like to ask a question at this time, please press star one one on your touchdown phone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from Jake Siekielski with Alliance Global Partners.

Speaker #2: As a reminder, if you'd like to ask a question at this time, please press *11 on your touchdown phone. And wait for your name to be announced.

Speaker #2: To withdraw your question, please press *11 again. Please stand by while we compile the Q&A roster. Our first question comes from Jake Sekelsky, with Alliance Global Partners.

We also intend of course over the coming months too.

I think through the financing mix of.

Going beyond this first vessel and ensuring that we explore every opportunity that is now being presented by the U S government as you've probably seen there's quite a bit more in terms of funding opportunities from various departments, whether it's within the department of defense Dfc.

Gerard Barron: Hey, Gerard and Craig, thanks for taking the questions.

Speaker #4: Hey, Jared and Craig, thanks for taking the questions.

Craig Shesky: Of course. Hey, Jake. How are you?

Speaker #3: Of course, hey Jake, how are you?

Gerard Barron: Hey, Jake.

Speaker #4: Hey Jake.

<unk> Bank.

Craig Shesky: I'm good. Thank you.

Speaker #3: I'm good, thank you.

<unk> of energy there was 1 billion allocated for critical minerals and just this week.

Gerard Barron: So now that the PFS is out, can you just comment or provide some color on what work needs to be done in order to get through the feasibility level and maybe the timeline there?

Speaker #4: so now that the PFS is out, can you just comment or provide some color on on what work needs to be done in order to get through the feasibility level, and maybe the timeline there?

So we're going to be very busy again with partners, such as <unk> Korea, zinc and potentially the U S government laying out what that timeline is going to be but really focusing on that first vessel is priority number one.

Craig Shesky: Yeah. Look, I think the biggest thing that we're going to focus on is getting to our final agreement with our partner Allseas. Now that we see a clear regulatory path through the United States, the next step is really not just focusing on feasibility, but getting ourselves to the FID, the investment decision to begin ordering some of the longer lead time items to allow us to hit our target of Q4 2027 production date.

Speaker #3: Yeah, look, I think the biggest thing that we're going to focus on is getting to our final agreement with our partner Allseas. Now that we see a clear regulatory path through the United States, the next step is really not just focusing on feasibility, but getting ourselves to the, you know, FID, the Investment Decision, to begin ordering some of the longer lead time items to allow us to hit our target of Q4 2027 production date.

Okay. That's helpful and then on the permitting side of things under Noah.

Now that you are in the certification stage what are the next major steps or milestones that we should keep an eye out for as we head into the second half of the year in 2026.

Oh well.

I guess.

The closing of the comment period and I think.

Craig Shesky: So it's been this interesting dance, this balance between not wanting to spend too early, certainly when the TMC valuation was much lower, but now that we see clarity, making sure that we give sufficient ammo, not just to Allseas, not just to ourselves, not just to the board, but also to the market to make clear that we expect a permit to be coming, and therefore, it makes sense to begin spending a little bit to get that production system ready to go. So I would say, Jake, that's probably the number one important point. We also intend, of course, over the coming months to think through the financing mix of going beyond this first vessel and ensuring that we explore every opportunity that is now being presented by the US government.

Speaker #3: So it's been this interesting, dance, this balance between not wanting to spend too early, certainly when the TMC valuation was much lower, but now that we see clarity, making sure that we give sufficient ammo, not just to Allseas, not just to ourselves, not just to the board, but also to the market, to make clear that we expect a permit to be coming and therefore it makes sense to, begin spending a little bit to get that production system ready to go.

The administration and no I have made it very clear that they have.

Introduced changes to those regulations to allow fast tracking of permitting and so I think what you should look forward to us.

Good news coming out of the regulator and I must say.

Considering this is the first live application that they've had in many years with this new application.

Speaker #3: So I would say, Jake, that's probably the number one, important point. we also intend, of course, over the coming months to, you know, think through the financing mix of, you know, going beyond this first vessel and ensuring that we explore every opportunity that is now being presented by the US government, as you've probably seen, there's quite a bit more in terms of funding opportunities from various departments, whether it's within the Department of Defense, DFC, XM Bank, Department of Energy, there was the $1 billion allocated for critical minerals, just this week.

Noah had been amazing.

They are motivated and excited about.

The work that comes with this application and.

Of course, these rules of dish had been around for decades.

Craig Shesky: As you've probably seen, there's quite a bit more in terms of funding opportunities from various departments, whether it's within the Department of Defense, DFC, Exim Bank, Department of Energy. There was $1 billion allocated for critical minerals just this week. So we're going to be very busy again with partners such as Allseas, Careers Inc., and potentially the US government laying out what that timeline is going to be. But really focusing on that first vessel is priority number one.

And finally, the moment is here and so I think what you can expect to see is.

Those amended changes adopted.

And you can expect us.

To be.

Having a regular cadence what I say, we are in daily contact with our regulators, probably yes, probably daily.

Speaker #3: so we're going to be very busy again, with partners such as Allseas, Careers Inc., and potentially the US government, laying out what that timeline is going to be.

And so.

Of course, the big part is.

Speaker #3: But really focusing on that first vessel, is priority number one.

Permitting.

Based on the environmental impact study and of course, we've spent hundreds of millions of dollars in more than a decade gathering that data, which is amazingly compelling and.

Gerard Barron: Okay. That's helpful. And then on the permitting side of things under NOAA, now that you're in the certification stage, what are the next major steps or milestones that we should keep an eye out for as we head into the second half of the year in 2026?

Speaker #4: Okay, that's helpful. Now, on the permitting side of things under NOAA, now that you're in the certification stage, what are the next major steps or milestones that we should keep an eye out for as we head into the second half of the year in 2026?

And so we expect to have.

More information to be sharing with not only the regulators, but the broader.

Public as we make that information available because what I can tell you is it's all good news there. So I guess from a no other sectors just more <unk> certainty.

Gerard Barron: Well, I guess the closing of the comment period, and you know I think the administration and NOAA have made it very clear that they have introduced changes to those regulations to allow fast tracking of permitting. And so I think what you should look forward to is good news coming out of the regulator. And you know I must say, considering this is the first live application that they've had in many years, or first new application, NOAA have been amazing. You know I think they are motivated and excited about the work that comes with this application. And you know, of course, these rules of DISHMRA have been around for decades. And finally, the moment is here. And so I think what you can expect to see is those amended changes adopted, and you can expect us to be having a regular cadence.

Speaker #3: Well, I guess, the closing of the comment period and, you know, I think the administration and NOAA have made it very clear that they have introduced changes to those regulations to allow fast tracking of permitting.

And they want to see this.

Resource.

In production you saw the critical minerals, David hopefully traveled to the Cook Islands recently.

Speaker #3: And so I think what you should look forward to is, you know, good news coming out of the regulator. And, you know, I must say, considering this is the first live application that they've had in many years, or first new application, NOAA has been amazing.

We had a tremendous reception at the White house, where they received not any cruising.

And that team led by the chairman, but also the Republic of not route.

And the message that they are consistently saying is critical minerals were important and seabed mineral super important in the United States with a lead that race.

Speaker #3: You know, I think they are motivated and excited about, you know, the work that comes with this application and, you know, of course, these rules of DISHMRA have been around for decades.

And obviously.

<unk>.

The most advanced in that category, so it's a perfect coming together.

Speaker #3: And finally, the moment is here. And so I think what you can expect to see is, you know, those amended changes adopted. And you can expect us, you know, to be having a regular cadence.

Fair enough. Okay. That's all on my end thanks again.

Thanks Jake.

Our next question comes from Heiko with H C Wainwright.

Gerard Barron: Would I say we are in daily contact with our regulator? Probably, yeah. Probably daily. And so, you know, of course, the big part is permitting based on the environmental impact study. And of course, we've spent hundreds of millions of dollars and more than a decade gathering that data, which is amazingly compelling. And so, look, we expect to have more information to be sharing with not only the regulator but the broader public as we make that information available because what I can tell you is it's all good news there. So I guess from a NOAA perspective, just more permitting certainty. And they want to see this resource in production. You saw the critical minerals are, David Copley traveled to the Cook Islands recently. We had a tremendous reception at the White House where they received not only Careers Inc.

Hey, there thanks for taking my questions and thanks for inviting into your Investor Day earlier this month.

Speaker #3: Would I say we are in daily contact with our regulator? Probably, yeah. Probably daily. And so, you know, of course, the big part is permitting based on the environmental impact study.

Meanwhile, the karaoke session came up on this call.

Hopefully no photos or video, but thank you for attending.

Allegedly.

You are still calling.

We're still calling for first production in Q4 of 2007 and in your remarks prepared remarks here. It was listed in the presentation.

Speaker #3: And of course, we've spent hundreds of millions of dollars and more than a decade gathering that data, which is amazingly compelling. And so, look, we expect to have more information to be sharing with not only the regulator, but the broader public as, you know, we make that information available because, you know, what I can tell you is it's all good news there.

You know from the reports we've written we think this is a durable timeline in your view what main factors could either accelerate or slowdown this progress in your.

Your view I guess, some societal regulatory factors that may not be quite as obvious to outsiders like mean that don't talk to the government in the communities and all a daily weekly basis.

Speaker #3: So I guess from a NOAA perspective, just more permitting certainty. And they want to see this resource in production. You know, you saw the critical minerals are David Copley traveled to the Cook Islands recently.

Is there maybe anything that you would leave us with on how to build our models a little bit more accurately.

But I don't think the government will give us anything other than encouragement to that date.

Speaker #3: We had a tremendous reception at the White House where they received not only Careers Inc. and their team led by their chairman, but also the Republic of Nauru.

What we announced to the marketplace was that.

Gerard Barron: and their team led by their chairman, but also the Republic of Nauru. And you know the message that they are consistently saying is critical minerals are important and seabed minerals are super important, and the United States want to lead that race. And obviously, we are the most advanced in that category, so it's a perfect coming together.

That timetable will take about two years that you can.

Speaker #3: And, you know, the message that they are consistently saying is that critical minerals are important, and seabed minerals are super important. The United States wants to lead that race.

Clearly.

We are receiving enough encouragement from the administration and the regulator for our board of directors to start deploying that capital and.

Speaker #3: And obviously, we are the most advanced in that category. So it's a perfect coming together.

I must say with.

With the rig is in place and for those people that were able to review.

Gerard Barron: Fair enough. Okay. That's all on my end. Thanks again.

Speaker #4: Fair enough. Okay, that's all on my end. Thanks again.

It's a very qualified board of directors around these topics people like Andy Greg who has built more than $500 billion worth of capital projects and there is also a space over his career at Bechtel.

Craig Shesky: Thanks, Jake.

Speaker #3: Thanks, Jake.

Liz: Our next question comes from Heiko Ilie with HC Wainwright.

Speaker #2: Our next question comes from Heiko Illy with HC Wainwright.

Heiko Ilie: Hey there. Thanks for taking my questions and thanks for inviting me to your investor day earlier this month. I like how the karaoke session came up on this call.

Speaker #5: Hey there, thanks for taking my questions and thanks for inviting me to your investor day earlier this month. I like how the karaoke session came up on this call.

Sure.

We have a lot of expertise on that board.

I understand how to allocate capital and how to how to provide governance around that so.

Craig Shesky: Hopefully, no photos or video, but thank you for attending, Heiko.

Speaker #3: Definitely no photos or video, but thank you for attending, Heiko.

Heiko Ilie: Allegedly. You're still calling for first production in Q4 of '27, and in your remarks here, it was listed in the presentation. As you know from the reports we've written, we think this is a doable timeline. In your view, what main factors could either accelerate or slow down this progress in your view? You know, like some societal regulatory factors that may not be quite as obvious to outsiders like me that don't talk to the government and the communities on a daily, weekly basis. And is there maybe anything that you would leave us with on how to build our models a little bit more accurately?

Speaker #5: Allegedly. You're still calling for you're still calling for first production in Q4 of 27 and your remarks here who is listed in the presentation as you know from the reports we've written, we think this is a doable timeline.

What I can tell you is that we've got a very supportive board of spending that money carefully and we've got an amazing partner in <unk>, who are equally committed to getting that both into production and we also go to the administration, who want us to get moving and so.

Speaker #5: In your view, what main factors could either accelerate or slow down this progress in your view? You know, like some societal regulatory factors that may not be quite as obvious to outsiders like me, that don't talk to the government and the communities, you know, on a daily, weekly basis.

I don't see anything on the regulatory side that that should influence that of course, there are supply chain issues that that's what our job at <unk> as a partner there.

That's our job to manage that and.

Getting into production during <unk>.

Speaker #5: And is there maybe anything that you would leave us with on how to build our models a little bit more accurately?

The 47th administration.

Gerard Barron: Look, I don't think the government will give us anything other than encouragement to that date. And you know what we announced to the marketplace was that you know that timetable will take about two years, but you can you know clearly, we are receiving enough encouragement from the administration and the regulator for our board of directors to start deploying that capital. And you know I must say, with the right rigors in place and for those people that were able to review our very qualified board of directors around these topics, people like Andy Gregg, who built more than $500 billion worth of capital projects in the resources space over his career at Bechtel, we have a lot of expertise on that board that understands how to allocate capital and how to provide governance around that.

Speaker #3: Look, I don't think the government will give us anything other than encouragement to that date. And, you know, what we announced to the marketplace was that, you know, that timetable will take about two years, but you can clearly we are receiving enough encouragement from the administration and the regulator for our board of directors to, you know, start deploying that capital.

Okay.

Hello, Hello during the 47th administration is super important and so.

Sorry, I got disconnected for a minute.

So I think all of the risks.

Just normal business risks are higher and I think we're well equipped to be able to handle animals.

Along with our partners.

Fair enough building on that last question just a little bit early on this call you were talking about adopt or adapt or die I.

Speaker #3: And, you know, I must say, with the right rigors in place and for those people that were able to, you know, review our very qualified board of directors around these topics, people like Andy Gregg, who built more than $500 billion worth of capital projects in the resources space over his career at Bechtel, you know, we have a lot of expertise on that board.

I agree with your viewpoint of having a one.

Light mode around the business.

And you alluded to that as well earlier on this call.

Thinking out loud here given all the geopolitical risk factors and some of that was discussed earlier this month as well.

Is there anything in particular that keeps you up at night or anything in particular, where things have just come in substantially better than you anticipated.

Speaker #3: That understand how to allocate capital and how to provide governance around that. So, you know, what I can tell you is that we've got a very supportive board of spending that money carefully and we've got an amazing partner in Allseas who are equally committed to getting that boat into production.

Gerard Barron: So you know what I can tell you is that we've got a very supportive board of spending that money carefully, and we've got an amazing partner in Allseas who are equally committed to getting that boat into production. And we've also got an administration who want us to get moving. And so you know I think I don't see anything on the regulatory side that should influence that. Of course, there are supply chain issues, but you know that's what our job at Allseas as our partner there, you know that's our job to manage that. And you know getting into production during the 47th administration.

Because of the way, we look at it and a lot of things were discussed earlier this month, where the support with substantially stronger than what anyone would've ambition. I mean, you literally had some of the government representatives present with you at the hotel.

Speaker #3: And we've also got an administration who want us to get moving. And so, you know, I think I don't see anything come the regulatory side that should influence that.

Look I think there's been a lot of surprises to the upside hiker and I think.

We knew some of the cabinet when they are in a position of course and so on.

Speaker #3: Of course, there are supply chain issues, but, you know, that's what our job at Allseas as our partner there, you know, that's our job to manage that.

Trump administration.

Came into being.

Speaker #3: And, you know, getting into production during the 47th administration, hello? Hello? During the 47th administration is super important. And so, sorry, I got disconnected for a minute.

It was <unk>.

Very encouraging for us to find people like secondary review.

Take such a prominent role in the cabinet.

Does he have written letters and a pine on this topic on both on our behalf while in opposition as had many others in the cabinet and so we knew the support was there, but sometimes you just.

Heiko Ilie: Hello?

Gerard Barron: Hello? During the 47th administration is super important. And so, sorry, I got disconnected for a minute. So I think all of the risks are you know just normal business risks, Heiko, and I think we're well equipped to be able to handle those along with our partners.

Speaker #3: So, I think all of the risks are just normal business risks, Heiko, and I think we're well equipped to be able to handle those.

Sometimes you get surprised and then we have we turn off with the White House.

Where we're invited to the White house very regularly and.

Speaker #3: Along with our partners.

Heiko Ilie: Fair enough. Building on that last question just a little bit, earlier on this call, you were talking about adapter die. And I agree with your viewpoint of having you know a white moat around the business. Oh, and you alluded to that as well earlier on this call. Just thinking out loud here, given you know all the geopolitical risk factors, and some of that was discussed earlier this month as well, is there anything in particular that keeps you up at night or anything in particular where things have just come in you know substantially better than you anticipate? I mean, because from the way we look at it, a lot of things were discussed earlier this month where you know the support was substantially stronger than what anyone would have envisioned. I mean, you literally had some of the government representatives present with you at the hotel.

You turn up there like we did last week and you find a room filled with all of the major departments that have the have the ability to contribute because the strong leadership coming out of the White House is saying we want this to happen and by the way you'll notice every agency that can help you make it happen is in the room, what do we need to do and.

Speaker #5: Fair enough. Building on that last question, just a little bit earlier on this call, you were talking about adaptor diet. And I agree with your viewpoint of having, you know, a white note around the business.

Speaker #5: And you alluded to that as well earlier on this call. Just thinking out loud here, given, you know, all the geopolitical risk factors and some of that was discussed earlier this month as well, is there anything in particular that keeps you up at night or anything in particular where things have just come in, you know, substantially better than you anticipate?

And then of course.

A surprise to the upside as defined <unk> when I first met their chairman was not convinced about the USA investment opportunity, but was very keen to get a material to supply as Korean facility, but over time has become absolutely convinced that he can.

Speaker #5: I mean, because from the way we look at it, a lot of things were discussed earlier this month. Where, you know, the support was substantially stronger than what anyone would have envisioned.

As such an important role in supporting the critical mineral needs of this administration in the United States and he also produces some critical minerals that the U S administration really wants like Internet and gallium.

Speaker #5: I mean, you literally had some of the government representatives present with you at the hotel.

Gerard Barron: Look, I think there's been a lot of surprises to the upside, Heiko, and I think you know we knew some of the cabinet when they were in opposition, of course. And so when the Trump administration came into being, you know it was very encouraging for us to find people like Secretary Rubio take such a prominent role in the cabinet because he had written letters and opined on this topic on both on our behalf while in opposition, as had many others in the cabinet. And so we knew the support was there, but sometimes you just, you know, sometimes you get surprised. You know, and then we have, we turn up at the White House, and you know we're invited to the White House very regularly.

Speaker #3: Look, I think there have been a lot of surprises to the upside, Heiko. And I think, you know, we knew some of the cabinet when they were in opposition, of course.

I would say that pleasant.

Speaker #3: And so, when the Trump administration came into being, it was very encouraging for us to find people like Secretary Rubio take such a prominent role in the cabinet.

Apprises on the upside just just how the administration is mobilizing how they want this to happen and.

No.

Took the.

When I had the chairman with me last week from <unk>, Inc.

Speaker #3: Because he had written letters and opined on this topic on both on our behalf, while in opposition, as had many others in the cabinet.

The administration.

Are you at all worried about some of the criticism that not at all like it's clear we need to secure the supplies of these critical minerals.

Speaker #3: And so we knew the support was there, but sometimes you just, you know, sometimes you get surprised. You know, and then we have, we turn up at the White House and, you know, we're invited to the White House very regularly.

For decades to come.

No.

They have experts in.

Who has been appointed and that's I think one of the encouraging things about this administration is that.

Gerard Barron: And you know, you turn up there like we did last week, and you find a room filled with all of the major departments that have the ability to contribute because the strong leadership coming out of the White House is saying, "We want this to happen." And by the way, you'll notice every agency that can help you make it happen is in the room. What do we need to do? And then, of course, you know a surprise to the upside is to find Careers Inc., who, when I first met their chairman, was not convinced about the USA investment opportunity, but was very keen to get our material to supply his Korean facility. But over time, has become absolutely convinced that he can play such an important role in supporting the critical mineral needs of this administration and the United States.

Speaker #3: And, you know, you turn up there like we did last week, and you find a room filled with all of the major departments that have a have the ability to contribute because the strong leadership coming out of the White House is saying, we want this to happen.

They have experts throughout that administration of the political appointees that.

Taking the reins on moving.

Never seen a group of people other than my own team work as hard and.

And.

Speaker #3: And by the way, you'll notice every agency that can help you make it happen is in the room. What do we need to do?

Senior Director Copley had just returned from a quick visit.

To the Cook Islands, two days to get the two days back he reminded me in the back of the bonds for a day on the ground.

Speaker #3: And then, of course, you know, a surprise to the upside is to find Careers Inc., who, when I first met their chairman, was not convinced about the U.S. investment opportunity, but was very keen to get our material to supply his Korean facility.

So he could express.

The administration's support for this new industry.

<unk>.

Yeah, I'd say they are all really positive surprises to the upside.

Speaker #3: But over time, has become absolutely convinced that he can play such an important role in supporting the critical mineral needs of this administration. And the United States.

Fair enough I will stop hogging the question Hugh and thanks for taking my questions. Thank you. Thank you.

Our next question comes from Matthew O'keefe with Cantor Fitzgerald.

Gerard Barron: And he also produces some critical minerals that the US administration really wants, like antimony and gallium. And so you know I'd say they're pleasant surprises on the upside, just just how the administration is mobilizing, how they want this to happen. And you know I took the, when I had the chairman with me last week from Careers Inc., we asked the administration, "Are you at all worried about some of the criticism?" And they're like, "Not at all." Like it's clear we need to secure the supplies of these critical minerals for decades to come. And you know, so, and of course, they have experts who've been appointed. And that's, I think, one of the encouraging things about this administration is that you know they have experts throughout that administration. The political appointees that are taking the reins you know are moving.

Speaker #3: And he also could use some critical minerals that the US administration really wants like antimony and gallium. And so, you know, I'd say they're pleasant surprises on the upside.

Thanks, operator.

Afternoon, Jared and Greg and team.

Just just a question here on the.

Feasibility studies, particularly for the PFS there.

Speaker #3: Just how the administration is mobilizing, how they want this to happen. And, you know, I took the, when I had the chairman with me last week from Careers Inc., we asked the administration, are you at all worried about, you know, some of the criticism and they're like, not at all.

<unk> looked very good.

Had some discussions on it but I was just wondering.

There is.

Our cap capital call sorry.

But a 492 million capex to get you into the production that was outlined in the feasibility study. So I'm just wondering.

I know in the past when you've had all seen is because they are taken care of most of the.

Speaker #3: Like, it's clear we need to secure the supplies of these critical minerals, you know, for decades to come. And, of course, they have experts who've been appointed, and that's, I think, one of the encouraging things about this administration is that, you know, they have experts throughout that administration. The political appointees that are taking the reins, you know, are moving. I've never seen a group of people, other than my own team, work as hard. And, you know, Senior Director Copley had just returned from a quick visit to the Cook Islands—two days to get there and two days back.

The ships and such are I've taken a big part of that.

Do you have an idea of how that might be split among your partners.

When we might get a sense of that.

Yes, sure Matt in terms of that 492 and sort of the assumptions that go into it in a pre feasibility study there is a.

Gerard Barron: I've never seen a group of people other than my own team work as hard. And you know Senior Director Copley had just returned from a quick visit to the Cook Islands. Two days to get there, two days back, he reminded me in the back of the bus for a day on the ground just so he could express the administration's support for this new industry. And so, yeah, I'd say they're all really positive surprises for the upside, Heiko.

Allowance for contingencies, some buffer as specific growth there are elements in there that for point in time relatively conservative analysis.

May not ultimately end up being something that has to be cash flow out the door between now and of course production.

Speaker #3: He reminded me in the back of the bus, for a day on the ground, just so he could express the administration's support for this new industry.

I would say in terms of bridging to here's the breakdown of whats TNC, what's all CS we've had the assumption that whether further lcs for several years of splitting that pre production preproduction capex.

Speaker #3: And for, yeah, I'd say they're all really positive surprises for the upside, Heiko.

Heiko Ilie: Fair enough. I will stop howling the question to you, and thanks for taking my questions.

Speaker #5: Fair enough. I will stop hogging the question to you, and thanks for taking my question.

We do believe there's going to be much smaller ultimately.

Gerard Barron: Thank you.

Speaker #3: Thank you.

What was in the PFS.

Heiko Ilie: Thank you.

Speaker #5: Thank you.

But this is what we're all drawing a rise to now with our.

Liz: Our next question comes from Matthew O'Keefe with Cantor Fitzgerald.

Speaker #2: Our next question comes from Matthew O'Keefe with Canterford's Gerald.

PFS in IAA released with the strategy day behind us with the applications over the line and now with a pretty clear path from the U S regulatory front.

Matthew O'Keefe: Hi, thanks, Hoplin. Afternoon, Gerard and Craig and team. Just a question here on the feasibility studies, particularly for the PFS there. Looked very good, and we had some discussions on it, but I was just wondering, there is a capital cost, sorry, there's about a $492 million CAPEX to get you into the production that was outlined in the feasibility study. So I'm just wondering, I know in the past, and you've had Allseas because they're taking care of most of the ships and such have taken a big part of that. Do you have an idea of how that might be split among your partners and will it, and you know when we might get a sense of that?

Speaker #4: Hi, thanks, operator. Afternoon, Jared and Craig and team. Just a question here on the feasibility studies, particularly for the PFS there. Looked very good and we had some discussions on it, but I was just wondering, there is a a cap capital sorry, there's about a $492 million CAPEX to get you into the production that was outlined in the feasibility study.

That gives confidence to ethanol cease to sharpen their pencils again and make sure that we hammer out those details. So I think it would still be a little bit premature to give a more detailed breakdown on it but suffice it to say that.

It's a priority for us and for them as well.

And I think thats evidenced by the fact that we also use founder Edward Herman Stephanie Heerema.

Speaker #4: So I'm just wondering, I know in the past and you've had Allseas because they're taking care of most of the ships and such have taken a big part of that.

Him over for the strategy day and spend a lot of time talking to.

And investors on that panel kind of laying out why.

They stuck with TMC through what have been some difficult times and have been key participants in nearly every at every major equity raise that we've done as a public company and even before that.

Speaker #4: Do you have an idea of how that might be split among your partners and will it, and you know, when we might get a sense of that?

Yes, definitely got a lot of support.

Craig Shesky: Yeah, sure, Matt. In terms of that $492 and sort of the assumptions that go into it in a pre-feasibility study, there is, you know, allowance for contingencies, you know, some buffers, specific growth. There are elements in there that, you know, for a point in time, relatively conservative analysis may not ultimately end up being something that has to be cash flow out the door between now and commercial production. What I would say in terms of bridging to, here's the breakdown of, you know, what's TMC, what's Allseas, you know, we've had the assumption that with our partner Allseas for several years of, you know, splitting that pre-production CAPEX, which, you know, we do believe is going to be much smaller ultimately than what was in the PFS.

Speaker #3: Yeah, sure, Matt. In terms of that $492 and sort of the assumptions that go into it in a pre-feasibility study, there is, you know, an allowance for contingencies, you know, some buffers specific to growth.

And in the work with your partners.

So an investor base, which seems to be growing.

Just to follow on that you mentioned earlier in the call about the department of energy The Department of Defense Other U S U S.

Speaker #3: There are elements in there that, you know, for a point in time, relatively conservative analysis. May not ultimately end up being something that has to be cash flow out the door between now and commercial production.

Institutions that are do have a lot of money now allocated for critical metals are you have you looked at though I'm, assuming you've looked at those programs, but are you actually applying for an ear and with any of those monies would be available or at least applicable to.

Speaker #3: What I would say in terms of bridging to, here's the breakdown of, you know, what's TMC, what's Allseas, you know, we've had the assumption now with our partner Allseas for several years of, you know, splitting that pre-production CAPEX, which, you know, we do believe is going to be much smaller ultimately than what was in the PFS.

This first part of <unk>.

The ramp.

Ramp up or would that all have to go towards sort of U S.

Processing capability.

Craig Shesky: But this is what we're all drawing a rise to now with our, you know, PFS and IA release, with the strategy day behind us, with the applications over the line, and now with a pretty clear path from the US regulatory front. That gives confidence to us and Allseas to sharpen the pencils again and, you know, make sure that we hammer out those details. So I think it would still be a little bit premature to give a more detailed breakdown on it, but suffice it to say that it's a priority for us and for them as well.

I am glad you asked that and that's a great clarification on the answer is it is.

Speaker #3: But this is what we're all drawing our eyes to now with our PFS and IA released with the strategy day behind us with the applications over the line.

Not just necessarily for funding the onshore component, but there are certain programs that can have cash available for the offshore side as well as some of those programs. It's really it's not quite the same as it wasn't a bite administration where.

Speaker #3: And now, with a pretty clear path from the U.S. regulatory front, that gives us confidence in Allseas to sharpen the pencils again and, you know, make sure that we hammer out those details.

A lot of focus was downstream, but there are various programs that you go through a long application processing he might not here for nine months here, it's a lot more all hands on deck and perhaps it can be chaotic sometimes but.

Speaker #3: So I think it would still be a little bit premature to give a more detailed breakdown on it, but suffice it to say that it's a priority for us and for them as well.

Craig Shesky: And I think that's evidenced by the fact that, you know, the Allseas founder, Edward Hirama and Stephanie Hirama, you know, came over for the strategy day and, you know, spent a lot of time talking to analysts and investors on that panel, kind of laying out why they've stuck with TMC through what have been some difficult times and have been key participants in nearly every major equity raise that we've done as a public company and even before that.

Speaker #3: And I think that's evidenced by the fact that, you know, the Allseas founder, Edward Heerema, and Stephanie Heerema, you know, came over for this strategy day and, you know, spent a lot of time talking to analysts and investors on that panel, kind of laying out why they've stuck with TMC through what have been some difficult times and, you know, have been key participants in nearly every major equity raise that we've done as a public company and even before that.

You get to the right answer or at least to get to the right people a lot quicker.

The reality is that even beyond.

There are certain programs where the.

The folks who would be controlling the purse strings are yet even confirmed.

That confirmation is likely to occur in September or October. So a lot of these conversations are going to ripen, but the answer is absolutely. Yes, we are pursuing.

Potential dollars that could be made available for.

Matthew O'Keefe: Yeah, no, you definitely got a lot of support in the work with your partners and your investor base, which seems to be growing. Just to follow on that, though, you mentioned earlier in the call about the Department of Energy, the Department of Defense, other US institutions that do have a lot of money now allocated for critical metals. Have you looked at those, I'm assuming you've looked at those programs, but are you actually applying for any, and would any of those monies be available or at least applicable to this first part of the ramp-up, or would that all have to go towards sort of US?Processing

Speaker #4: Yeah, no, you've definitely got a lot of support. In the work with your partners and your investor base, it seems to be growing. Just to follow on that, though, you mentioned earlier in the call about, you know, the Department of Energy, the Department of Defense, other US institutions that do have a lot of money now allocated for critical metals.

For the offshore side as well so we don't want to say too much on that because obviously this is a path we've been pursuing for a long time, but I would say, it's less now about just hey, let's fill up the application. This was one of the reasons frankly that.

Perhaps wasn't as noted it noticed over the course of summer, but I believe it was late June.

There was a adjustment to the way funding is done within the U S government and it's not just one African goes to do.

Speaker #4: Are you in the, have you looked at those, I'm assuming you've looked at those programs, but are you actually applying for any and would any of those monies be available or at least applicable to this first part of the ramp-up or would that all have to go towards sort of US processing capability?

Or dfc in exome and you do it all separately, rather theres a coordination among the national Energy dominance Council, which of course, David Copley was one of the key people in for a long time and that was in the National Security Council. The same people are really overseeing all of the programs. So it's less about sort of a very dogmatic which program your reply.

Liz: capability.

Liz: I'm glad you asked that. And you know, it's a great clarification. The answer is, it's not just necessarily for funding the onshore component, but there are certain programs that can have cash available, for the offshore side as well. Now, some of those programs, it's really, it's not quite the same as it was in the Biden administration where, you know, a lot of focus was downstream, but there were various programs that, you know, you go through a long application process and you might not hear for nine months. Here, it's a lot more all hands on deck, and perhaps it can be chaotic sometimes, but, you get to the right answer, or at least you get to the right people a lot quicker.

Speaker #3: I'm glad you asked that and, you know, it's a great clarification. The answer is, it's not just necessarily for funding the onshore component, but there are certain programs that can have cash available for the offshore side as well.

Two and fingers crossed you get some.

Some response many months later here, it's much more coordinated and I think much more intentional.

Speaker #3: Now, some of those programs, it's really, it's not quite the same as it was in the Biden administration where, you know, a lot of focus was downstream, but there were various programs that, you know, you go through a long application process and you might not hear for nine months.

So the answer is yes, both offshore and onshore and yes, we are pursuing all of these concurrently.

That sounds promising and if I may just one last one here just to follow on that.

Speaker #3: Here, it's a lot more all hands on deck, and perhaps it can be chaotic sometimes, but you get to the right answer or at least you get to the right people a lot quicker.

I know you've got a lot to do between now and ramping up but just that you didn't like the mid <unk> or early 'twenty three is to get a processing plant.

Liz: the reality is that even beyond DOD and DOE, there are certain programs where, you know, the folks who would be controlling the purse strings aren't yet even confirmed. and that confirmation is likely to occur in September or October. so a lot of these conversations are going to ripen, but the answer is absolutely yes. We are pursuing, you know, potential dollars that could be made available, for the offshore side as well. So, you don't want to say too much on that because obviously, you know, this is a path we've been pursuing for a long time. But I would say it's less now about just, hey, let's fill up the application.

Speaker #3: The reality is that, even beyond DOD and DOE, there are certain programs where the folks who would be controlling the purse strings aren't yet even confirmed.

If money is where available because.

It would be a quite quite a quite a boon for the U S to have some processing capability of the hydrogen that nature that you guys are looking at.

Speaker #3: And that confirmation is likely to occur in September or October, so a lot of these conversations are going to ripen, but the answer is absolutely yes.

What would sort of be could you go quicker on that I mean or do you still have a lot of work to do vis vis engineering.

Development for your process plant.

We could absolutely go quicker and.

That's the significance of having <unk> involvement.

Liz: This is one of the reasons, frankly, that, you know, it perhaps wasn't as noticed over the course of summer, but I believe it was late June, that there was an adjustment to the way funding is done within the US government. And it's not just one applicant goes to DOE and DOD or DFC and EXIM, and you do it all separately. Rather, there's a coordination among the National Energy Dominance Council, which, of course, David Copley was one of the key people in for a long time, and now is in the National Security Council. The same people are really overseeing all of the programs. So it's less about sort of a very dogmatic which program you're applying to, and fingers crossed, you get some, some response many months later. Here, it's much more coordinated and I think much more intentional.

Just to build a state of the arts facility in Korea and.

So Dave.

I would like to come and build that here in the United States and.

Other sectors wed like to see that on the ground, providing the money was the right terms were available from.

Those agencies that Craig has mentioned.

And we think it would be a boon to support the reindustrialization ambitions.

For the United States, Matt you know better than anyone that today and grown its mind and we're all talking about bits of cost because AI has everyone's attention that we need to be thinking about Athens, as well, we need to build the infrastructure and for that you need muscles.

Liz: so the answer is yes, both offshore and onshore, and yes, we're pursuing all of these, concurrently.

Liz: That sounds promising. And if I may, just one last little one here just to follow on that. I know you've got a lot to do between now and, and, ramping up, but just, you know, you did say like in the mid 2030s or early 2030s to get a processing plant. if monies were available, because, you know, that it would be a quite, quite a, quite a boon for the US to have some processing capability of the hydro met nature that you guys are looking at. could you, what would sort of be, could you go quicker on that? I mean, or do you still have a lot of, work to do vis-a-vis engineering and, you know, a development for your, for your process plant?

The question is where are they going to come from and I wish we were as sexy as the AI industry, but our time is coming because people are starting to talk about this.

As being the being the part of the equation that is being a little bit of the loops and of course, it's become a very hot geopolitical issue.

And we're starting to see.

Smart money move into and of course, the administration is going to lead that pathway, we sold them to a very.

Interesting deal with MP recently, and the materials and I think we're going to be seeing them do a lot more like that.

That's totally totally agree alright, thanks very much.

Craig Shesky: No, we could absolutely go quicker. And, you know, that's, that's the significance of having Korea's Inc.'s involvement. You know, they've just built a state-of-the-art facility in Korea. And, you know, so they've, you know, they'd like to come and build that here in the United States. And, you know, from our perspective, you know, we'd like to see that on the ground. Providing the money was, the right terms were available from, you know, those agencies that Craig has mentioned. And, you know, we think it would be a boon to support the reindustrialization ambitions for the United States. And Matt, you know better than anyone, if it ain't grown, it's mined. And we're all talking about bits, of course, because AI has everyone's attention, but we need to be thinking about atoms as well. You know, we need to build the infrastructure. And for that, you need metals.

Yeah.

Our next question comes from Dmitry Silverstein with <unk> research.

Excuse me good afternoon, gentlemen, thank you for taking my call.

Just a quick follow up or maybe another follow up clarification.

You didn't include it in the slides, but in your Investor Day slides you get a more detailed timelines and you have something called Provisional approval, which you expect to get by the end of this year, if I remember correctly. The slide and then the final approval by the fourth quarter of 2026 to let you get into production in fourth quarter of 2007, what's the what's the.

The difference between provisional approval.

Final approval and thus getting provisional approval do anything from you for you in terms of.

Expediting the decision making process on funding the first batch of capital expenditures or how should we think about that milestone approaching.

Look the administration have been very.

Craig Shesky: And the question is, where are they going to come from? And I, you know, I wish we were as sexy as the AI industry, but, you know, our time is coming because people are starting to talk about this and, as being the, being the part of the equation that has been a little bit overlooked. And of course, it's become a very hot geopolitical issue. And, you know, we're starting to see, you know, smart money move into it. And, you know, of course, the administration is going to lead that pathway. We saw them do a very, interesting deal with MP recently, MP Materials. And, you know, I think we're going to be seeing them do a lot more like that.

Open on this topic.

Because there are some hoops, we need to help through and.

What has been made very clear as losses that if the administration came in just gave US opponent. Today, then we'd be tied up in legal knots, and we made out to achieve the objective that was set out in the executive order and that is to fast track the permitting and the legal mind to the pound on this and it makes sense.

And so what we've said, though is it would be nice if we could have on something.

And hence that woods provisional that woods.

Liz: Yep, totally agree. All right, thanks very much.

Give all of us the confidence however, I think it's fair to say that our board and as you know we've raised quite a bit of money in the last quarter.

Craig Shesky: Thank you, Matt.

Gerard Barron: Our next question comes from Dmitry Silverstein with Water Tower Research.

And our board and our investors want to see us spend that money because they feel there is enough confidence coming out of the signals. We have from the administration to get that permit in fine time.

Liz: Excuse me, good afternoon, gentlemen. Thank you for taking my call. Just a quick follow-up, or maybe not a follow-up, clarification. You didn't include it in these slides, but in your Investor Day slides, you had a more detailed timeline, and you had something called provisional approval, which you expect to get by the end of this year, if I remember correctly, the slide, and then the final approval kind of by the fourth quarter of 2026 to let you get into production in the fourth quarter of 2027. What's the, what's the sort of the difference between provisional approval and final approval, and does getting provisional approval do anything for you in terms of, expediting the decision-making process on funding the the first batch of capital expenditures, or how should we think about that milestone, approaching?

The dates we mentioned.

The strategy day still stick, we think we will have that.

In a form to share by the end of the year.

And.

What's that.

But.

It will be a confidence booster you might say.

Okay.

Understood. Okay. That's helpful. Jerry.

Can you talk a little bit about you mentioned that a couple of times during the call about the changing regulations that.

No.

As rhythm has published another in the commentary I guess whats closing.

Craig Shesky: Look, the administration had been very, open on this topic, and because there are some hoops we need to hop through. And, you know, what has been made very clear to us is that if the administration came and just gave us a permit today, then we'd be tied up in legal knots, and we may not achieve the objective that was set out in the executive order, and that is to fast-track the permitting. And so the legal minds have opined on this, and it makes sense. and so what we've said, though, is it would be nice if we could have something, and hence that word, provisional, that would, you know, give all of us the confidence.

What you talk about it being helpful in expediting approval processes, but specifically to your project. What do you think that these new regulations can do in terms of getting you over the line.

Getting the approval.

Well the main one is that the way the regulations stood you needed to submit a exploration application and then.

Once that was granted.

They would start working on your commercial recovery, but the key driver will be to be able to do those two things in tandem because as you know we submitted two applications for exploration licenses.

And we submitted one application for our commercial recovery comment and so whilst that application is with the agency. The changes will just put in Sun. The fact that they can do those things in tandem and they will massively shrink the permitting timeframe and.

Craig Shesky: However, I think it's fair to say that our board, and as you know, we've raised quite a bit of money, you know, in the last quarter, and our board and our investors want to see us spend that money because they feel there is enough confidence, coming out of the signals we have from the administration to get that permit in prime time. But, you know, the the dates we mentioned at, Strategy Day still stick. You know, we think we'll have that, in a form to share by the end of the year. And, you know, it's, but it'll be a confidence booster, you might say, Dmitry.

Just to clarify to Dmitry and reading the plain language.

Just for the implementing regulations.

It was always a read that the exploration license grants would have to come prior to be granted the CRP, but the plain language is clear that the applications or at least the review process could be concurrent so what we think is ongoing with the public common period and the proposed amendments is really a confirmation of something.

Liz: Understood. Okay, that's helpful, Gerard. Thank you. can you talk a little bit about, you mentioned it a couple of times during the call about the the changing regulations that, NOAA is, has written and has, published another in the comment period, I guess, that's closing. what, you know, you talk about it being helpful in expediting approval processes, but specific to your project, what do you think that these new regulations can do, in terms of getting you over the line, in in getting the approval?

That really already made pure common sense, especially for some.

Applicants like TMC, where much of the environmental work for the exploration side has already been done.

Beyond that too there is some helpful amendments in terms of just modernizing.

<unk> rules that were put in place in the 19 eighties in terms of delivery of physical copies.

In terms of ensuring that the contractor who has done much of the environmental work is able to write that environmental impact statement as opposed to sort of putting that work on a silver platter and then having the writing being done let's say bye bye no and in fact I was actually a clarification that came through the NEPA process, even before this in 2012.

Craig Shesky: Well, the main one is that the way the regulations, stood, you needed to submit an exploration application, and then, once that was granted, you know, they would start working on your commercial recovery permit. But the key driver will be to be able to do those two things in tandem because, as you know, we submitted two applications for exploration licenses, and we submitted one application for a commercial recovery permit. And so whilst that application is with the, agency, the changes will just, put in stone the fact that they can do those things in tandem, and they will massively shrink the permitting timeframe.

Three so it's really just as they say in the.

On sort of the Federal Register which is component comments, it's a modernization of a lot of that great work that was done but it is pretty amazing when you look at the.

Dish legislation and then implementing regulation and then compare it to what the RSA had begun working on in the 19 nineties and beyond they are really taking a lot of the great work and great ideas that came originally from this use seabed mining code.

Liz: Yeah. And just to clarify too, Dmitry, in reading the plain language, of DHFRA and the implementing regulations, it was always a read that, you know, yes, the exploration license grants would have to come prior to the grant of the CRP, but the plain language is clear that the applications, or at least the review process, could be concurrent. So what we think is ongoing with the public comment period and the proposed amendments is really a confirmation of something that really already made pure common sense, especially for some, you know, applicants like TMC, where much of the environmental work for the exploration side has already been done.

It was in very good shape and now we're just kind of tightening it up our newest tightening it up around the edges to make sure that it can be more modern more commercial and clarifying the concurrent reprocess matured laid out.

Got it thank you Craig and thank you for the granularity that's all the questions I have.

We have nothing else in there.

In the phone queue. There was one question on the webcast from Nelson sellers can be administration hopes mining operations.

Well I think that goes back to one of the reasons that we're all going through this very robust and clear legal process and make sure that we're not skipping over any steps to ensure that there is permitted legally defensible for decades to come are very similar to any land based mining operation, where so long as the process itself was followed in all of the neck.

Liz: Beyond that too, there's, you know, some helpful amendments in terms of just modernizing, you know, these rules that were put in place in the 1980s in terms of delivery of physical copies, in terms of ensuring that, you know, the contractor who's done, much of the environmental work is able to write that environmental impact statement as opposed to, you know, sort of putting that work on a silver platter and then having, you know, the writing being done, let's say, by NOAA. In fact, that was actually a clarification that came through the NEPA process even before, this in 2023. so it's really just a, as they say on the, on sort of the federal register, which is, compiling these comments, it's a modernization of a lot of that great work that was done.

<unk> permits were granted under the authority has actually.

Provided to whoever that particular regulator was it's a situation where you can ensure that just the change in administration isn't going to somehow alter the legal validity of that permit.

Of course, we don't view this as a left versus right issue no matter, who the next administration is going to be critical minerals is bipartisan.

It's uneven U S versus China. It is really a recognition that the U S is dependent on a lot of different sources for critical minerals and TMC can take three of those dependencies off the table just from minority projects. So this mineral independents issue is not something where we expect any future administration, that's going to somehow.

Liz: But it is pretty amazing when you look at the, DHFRA legislation and then the implementing regulations, and then you compare it to what the ISA had begun working on in the 1990s and beyond. They're really taking a lot of the great work and great ideas that came originally from this US Seabed Mining Code. so it was in very good shape, and now we're just kind of tidying it up, or NOAA's tidying it up around the edges to make sure that, it can be more modern, more commercial, and clarifying, the concurrent review process that Gerard laid out.

Syed.

We're okay with being dependent on Chinese or Chinese food sources for some of these metals.

Anticipate that this legal process is going to be very robust and that's one of the reasons that it's important to let it play out.

In terms of delivery of physical copies. Uh in terms of ensuring that, you know, the contractor who's done uh much of the environmental work is able to write that environmental impact statement as opposed to, you know, sort of putting that work on a silver platter and then having, you know, the writing being done. Let's say bye. Bye. Noah. In fact, I was actually a clarification that came through the NEPA process even before uh, this in 2023. Um, so it's really just a as they say in the uh on sort of the Federal Register which is uh, complying with comments. It's a modernization of a lot of that great work that was done, but it is pretty amazing. When you look at the, uh, disha legislation and then the implementing regulations. And then you compare it to what the ISA had begun working on in the 1990s and Beyond, they're really taking a lot of the great work and great ideas that came originally from this uscb mining code. Um, so it was in very good shape, and now, we're just kind of tidying it up or Noah's, Tiding it up around the edges to make sure that, uh, it can be more moderate.

Liz: Got it. Thank you, Craig. Thank you for that great narrative. That's all the questions I have.

Is there anything else on the phone line any other questions that we have.

More commercial and clarifying, uh, the concurrent reprocess that Jared laid out.

No phone line questions at this time.

Liz: Thank you. We have, nothing else in the, in the phone queue. there was one question on the webcast, from Nelson Sellers. can the administration halt mining operations? well, I think that goes back to one of the reasons that, you know, we are going through this very robust and clear legal process to make sure that we're not skipping over any steps to ensure that, you know, this permit is legally defensible for decades to come. Very similar to any land-based mining operation where, so long as the process itself was followed and all of the, necessary, you know, permits, were granted, under the authority was actually, you know, provided to whoever that particular regulator was. It's a situation where, you can ensure that just a change in administration isn't going to, you know, somehow alter the legal validity of that permit.

Got it. Thank you, Craig. Thank you. So, thank you for that. Great! You already addressed all the questions I have.

Jared I might turn it back over to you for some closing comments.

Yes, Thank you Greg.

Well I guess, thank you everyone for <unk>.

Sure.

Tony out today, Thank you to my team for the amazing efforts.

To be able to produce these results.

Over recent months.

It's truly admirable what we achieved with a small team and of course, thank you to our strategic partners and our sponsor in the states.

Thanks, importantly to all of our shareholders.

And until next time.

This concludes today's conference call. Thank you for participating you may now disconnect.

Liz: of course, we don't view this as a left versus right issue. no matter who the next administration is going to be, critical minerals is bipartisan. And it's not even US versus China. It's really a recognition that the US is dependent on a lot of different sources for critical minerals, and TMC can take three of those dependencies off the table just from minority projects. So, this mineral independence issue is not something where, we expect any future administration is going to somehow decide, you know what, we're okay with, you know, being dependent on Chinese or Chinese-funded sources for some of these metals. so we anticipate that this legal process is going to be very robust, and that's one of the reasons that it's important, to let it play out. Liz, is there anything else on the phone line? Any other questions that we have?

Change Administration isn't going to, you know, somehow alter the legal validity of that permit. Um, of course we don't view this as a left versus right issue, uh, no matter who the next Administration is going to be critical. Minerals is bipartisan.

And it's not even US versus China. It's really a recognition that the US is dependent on a lot of different sources for critical minerals and TNC can take 3 of those dependencies off the table, just from the Nord projects. So uh, this mineral independent issue, is not something where we expect any future Administration is going to somehow decide. You know what, we're okay with, you know, being dependent on Chinese or Chinese funded sources for some of these Metals. Um, so we anticipate that this legal process is going to be very robust and that's 1 of the reasons that it's important to let it play out.

Gerard Barron: No phone line questions at this time.

Um Liz. Is there anything else on the phone line? Any other questions that we have?

Liz: Gerard, I might turn it back over to you for some closing comments.

No phone line questions at this time.

Craig Shesky: Yeah, thank you, Craig. well, I guess, thank you everyone for, for, turning up today. Thank you to my team for the amazing efforts, to be able to produce these results, over recent months. It's, it's truly admirable what we achieve with a tight small team. And of course, thank you to our strategic partners and our sponsoring states. And, thanks importantly to all of our shareholders. And until next time.

Uh, Jared, I might turn it back over to you for some closing comments.

Yeah, thank you Greg. Uh

I guess... Uh, thank you, everyone, for this opportunity.

for um,

Turning up today. Thank you to my team for the amazing efforts, uh, to be able to produce these results, uh, of a recent months. It, it's uh, it's truly admirable what we achieve with a tight small team, and, of course, thank you to our strategic partners and our sponsoring States. And, uh, thanks importantly.

All of our shareholders.

Gerard Barron: This concludes today's conference call. Thank you for participating. You may now disconnect.

and until next time,

this concludes today's conference call, thank you for participating. You may now disconnect