The Metals Co Q2 net loss widens, misses analyst expectations

Overview

• The Metals Co Q2 net loss widens to $74.3 mln, missing analyst expectations

• EPS for Q2 at -$0.20, compared to analyst estimate of -$0.05

• Co receives NOAA compliance notice for exploration applications, progresses regulatory path

Outlook

• Company targets Q4 2027 for NORI-D commercial production start

• Company expects 10.8 Mtpa production rate from 2031 to 2043

• Company sees low production costs of $1,065 per tonne of nickel

• Company expects 27% after-tax IRR for NORI-D project

Result Drivers

• EXPLORATION COSTS - Decrease in exploration and evaluation expenses due to reduced mining and process development activities

• ADMINISTRATIVE EXPENSES - Increase in general and administrative expenses driven by higher share-based compensation and consulting costs for financing and regulatory efforts

• NON-RECURRING CHARGES - Net loss includes $33 mln charge for fair value of warrants issued to Republic of Nauru

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for TMC the metals company Inc is $7.25, about 25% above its August 13 closing price of $5.44

Press Release: ID:nGNX1v7wNk