Given TMC's option to repurchase 75% of the royalty from TMCR, what factors might drive that decision, considering TMCR seems more like a partner than a typical royalty holder?

The relationship with TMCR is a strong business partnership, and the buyback will happen naturally as TMC pays the royalty, which chips towards the repurchase price. TMC always envisioned buying back the component it could and wanted an economic interest in the royalty, remaining a large and supportive shareholder of TMCR. “But the buyback will happen naturally. As we pay the royalty, it will chip towards the repurchase price.”

Regarding the Eco Minerals deal, will the contemplated joint campaign later this year into the CCZ be for TMC's zone, Eco's zone, or both?

The joint campaign will go to both zones. For TMC's area, the focus is on increasing the reserve number significantly by conducting more survey work, particularly in areas covered by the USA-A application, to move more resource into the measured and reserve categories. Eco Minerals will also conduct work on their ground, provided they receive permission. “Yes, it will go to both, actually. But on our area, we -- for those that have followed us, you know that there's been a lot of exploration and resource definition work in an area we used to know as NORI-D and we still do.”

Can you clarify the scope of potential government support? Is it for initial production, or is the objective to establish a larger processing hub for US seabed operations beyond TMC's initial efforts?

The administration aims for a leadership role in deep-sea minerals, recognizing the lack of US processing capacity. The goal is to bring processing capacity to the US, as China's dominance stems from government funding and different environmental standards. Even initial production of 3 million tonnes per year from Hidden Gem could satisfy 25-33% of US nickel and cobalt needs. Nodule City is designed for scalability, allowing for a much larger processing hub beyond initial production. “So what the U.S.A. administration and the White House did was they bought into that. And so we are continuing discussions with several of those agencies about helping us with that ability to bring nodules to the U.S.A. for processing.”

TMC

TMC the metals company (TMC) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Materials· Aug 13, 2026

Source: earnings call transcript

Executive summary

TMC the metals company Inc. Q2 FY26 — Advancing US Regulatory Pathway and Commercial Production System

The Metals Company is making steady progress on its US regulatory pathway for deep seabed mining applications, despite some permitting delays. The company is also advancing its first commercial collection system with Allseas and developing onshore processing capabilities in the US through partnerships. Management highlighted strong government support for reshoring critical mineral supply chains, while acknowledging the company's stock has lagged its underlying resource valuation.

Highlights

NOAA advancing both USA-A and USA-B applications, with USA-A expected to be posted in the Federal Register imminently and USA-B moving into formal environmental review.
Allseas advancing the first commercial collection system into procurement and subcontracting phase, with fabrication expected from Q4 FY26 through Q3 FY27.
Secured an exclusive right of negotiation for a lease option at the Port of Brownsville for 'Nodule City', a potential 12 million tonne per annum processing park.
Established a Master Services Agreement with Mariana Minerals for processing and refining expertise, with Mariana recently raising $310 million.
Liquidity stood at $143 million at June 30, 2026, including $44 million available from undrawn credit facilities, sufficient for the next 12 months.

Concerns

NOAA certification for USA-A application is now expected in October 2026, delaying the permit grant beyond Q1 2027.
Net loss for Q2 FY26 was $60.1 million, compared to $74.3 million in Q2 FY25.
Exploration and evaluation expenses increased by $45.6 million in Q2 FY26 YoY, primarily due to $37.2 million in charges owed to Allseas.
Net cash used in operating activities increased to $20.1 million in Q2 FY26 from $10.7 million in Q2 FY25, mainly due to tax withholding timing.
The ISA made only incremental progress on its mining code during its July session, with no target date for completion, indicating institutional delay.

Guidance & targets

Category	Target	Timeline	Confidence
USA-A Permit Grant	Not likely in Q1 2027 high materiality	Q1 · FY27	Low
USA-A Permit Grant	Well in advance of targeted vessel commissioning high materiality	Prior to Q4 FY27	High
Vessel Commissioning	Q4 2027 high materiality	Q4 · FY27	High
Liquidity sufficiency	Sufficient for at least the next 12 months medium materiality	Next 12 months · FY27	High

Deals & partnerships

Eco Minerals Mutual Master Services Agreement for offshore services and resource definition

The framework supports potential joint third-party work and a campaign later this year to increase resource certainty on areas covered within TMC's consolidated application and potentially Eco Minerals' ground.

Mariana Minerals Leadership in feasibility-level engineering for the first smelting stage at Nodule City

Mariana Minerals is leading the feasibility-level engineering for the first smelting stage at the proposed Nodule City site in Brownsville, Texas. The partnership leverages Mariana's expertise in software controls, automation, and first-principle thinking for mineral processing.

Allseas Framework to complete development, commissioning and operation of the first commercial nodule production system

The initial operating configuration is designed for a production capacity of 3 million wet tonnes of nodules per year. The arrangement is exclusive, becoming non-exclusive only if TMC declines to put another system in the water.

Capital programs

First Commercial Nodule Production System (Allseas) underway

Funding: Allseas (significant portion of preproduction development costs)

Start: Q4 FY26

Benefit:3 million wet tonnes of nodules per year

Development and commissioning of the Hidden Gem production vessel and subsea system. Fabrication expected from Q4 FY26 through Q3 FY27, leading to installation and commissioning targeted for Q4 FY27.

Nodule City (Brownsville Processing Hub) underway

Period spend: mid-single-digit millions (initial, over multiple quarters)

Benefit:Potential 12 million tonne per annum industry park

Pre-feasibility level engineering for a potential 12 million tonne per annum industry park is nearing completion. Feasibility-level engineering for the first smelting stage is underway with Mariana Minerals. Initial costs for TMC are modest, focusing on feasibility work prerequisite for government funding. Location covers 1,466 acres.

Risks & headwinds

NOAA permitting delays Q4 FY26 / Q1 FY27

USA-A certification delayed to October 2026, permit grant not likely in Q1 2027

Mitigation:Management expects permit well in advance of Q4 2027 vessel commissioning; rigor of review helps legal defensibility.

Institutional delay at ISA Ongoing

Only incremental progress on mining code during July session, no target date for completion

Mitigation:TMC continues to engage constructively with ISA and protect its rights, while pursuing the US pathway under DSHMRA.

Attempt to seek ITLOS advisory opinion against deep-sea mining July session

Proposal by China, Russia, and Greenpeace failed; drew significant pushback from member states

Mitigation:The effort failed, and ITLOS prescribed provisional measures protecting NORI and TOML's rights to due process and fair treatment.

Warrant expiration and potential dilution September 2026

15 million public warrants and 9.5 million private warrants expiring September 2026

Mitigation:Board decided not to pursue extension, as public warrants must be cash-exercised and private warrants are unlikely to yield incremental cash while still diluting shareholders.

What to watch in Q3 FY26

USA-A Application Federal Register Posting

Next quarter

Current Expected imminently

Target Posted in Federal Register

Why it matters

This marks the formal public comment process for TMC's consolidated application, a key step towards commercial recovery.

For USA-A, our consolidated application covers approximately 65,000 square kilometers and includes both an exploration license and a commercial recovery permit. NOAA's publication of that application in the Federal Register will bring the application into public view and begins the formal public comment process.

Find out whether TMC delivers this. Inve re-checks your case every morning.

Q&A highlights

Can you provide more color on the Mariana Minerals Master Services Agreement, the timeline for spending, and what we should model for its progression?

The relationship with Mariana Minerals dates back to 2018, and they have been working on the Brownsville file for about a year, with their own investment. Mariana, backed by Silicon Valley investors and having recently raised $310 million, acts as an 'owners team' to address permitting and construction, leveraging their expertise in automation and software controls. They will run a pilot to test flow sheets. Initial costs for TMC are expected to be relatively modest, in the mid-single-digit millions over multiple quarters, for feasibility work prerequisite for government funding.

“And so far, it's been an investment on their side, not on our side. Of course, they are backed by some of the best names in Silicon Valley and have recently just raised $310 million.”

asked by Heiko Ihle · answered by Gerard Barron

3 min read 7 chapters

Detailed narrative

US Regulatory Progress and Permitting

TMC USA is advancing two applications (USA-A and USA-B) under the US regulatory regime. USA-A, covering 65,000 sq km, is expected to be posted in the Federal Register imminently, initiating public comment. USA-B, covering 122,000 sq km, is moving into formal environmental review with NOAA expected to publish its notice of intent for an EIS.

While NOAA certification for USA-A is now expected in October 2026, delaying the permit grant beyond Q1 2027, the company still anticipates the permit well before vessel commissioning in Q4 2027.

Commercial Collection System Development

The agreement with Allseas establishes the framework for developing and operating the first commercial nodule production system, designed for 3 million wet tonnes per year. The program is moving into procurement and subcontracting, with basic engineering complete for critical long-lead systems.

Fabrication is scheduled from Q4 FY26 through Q3 FY27, leading to installation and commissioning targeted for Q4 FY27. Allseas is funding a significant portion of preproduction development costs, recoverable through production revenues.

American Deep Seabed Critical Mineral Supply Chain

TMC is working to integrate an American deep seabed critical mineral supply chain from offshore collection to onshore processing and refining. This includes partnerships with innovative American start-ups like Mariana Minerals and established industry participants across various sectors. The objective is to build an integrated supply chain, including US-built autonomous vessels, domestic processing of base metals and rare earth-bearing streams, and potentially serving other American operators.

Nodule City Onshore Processing Hub

TMC USA holds an exclusive right of negotiation for a lease option at the Port of Brownsville, Texas, for a proposed site called 'Nodule City'. This location provides direct access to the shipping channel and sufficient land (1,466 acres) for an integrated processing and refining ecosystem.

Pre-feasibility engineering for a potential 12 million tonne per annum industry park is nearing completion, with feasibility-level engineering for the first smelting stage underway with Mariana Minerals' leadership. Any future capital commitment is contingent on US government support.

Government Support and Industry Recognition

The US administration is 100% committed to reshoring critical mineral supply chains. President Trump recently convened a roundtable on critical minerals, expressly including deep seabed mining, and announced $3 billion in new investments. TMC is actively engaged in confidential funding processes with multiple US agencies to support nodule processing and refining in the United States, reinforcing the strategic importance of the industry.

ISA and ITLOS Developments

The US reiterated its position on regulating seafloor mining in international waters, not considering itself bound by ISA rules. The ISA made only incremental progress on its mining code, while an effort by China, Russia, and Greenpeace to seek an ITLOS advisory opinion targeting deep-sea mining outside UNCLOS/ISA failed.

The Seabed Disputes Chamber of ITLOS prescribed provisional measures protecting NORI and TOML's rights to due process, leading to the ISA Council approving a 5-year extension of NORI's exploration contract.

Resource Economics and Valuation

Combined estimated resource NPV from the PFS ($5.5 billion) and initial assessment ($18.1 billion) is $23.6 billion. Undiscounted, the studies point to approximately $369 billion in revenue and over $200 billion of EBITDA across the life of both projects. Management believes TMC's stock is undervalued relative to its resource, and they are working to ensure equity markets more appropriately value the company as it moves towards commercial recovery.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.