Rare Earth Stocks Jump Premarket; The Metals Company up 16%; Critical Metals up 4%; USA Rare Earth up 2%

Rare earth stocks jumped in premarket trading on Friday.

The Metals Company up 16%; Critical Metals rose 4%; USA Rare Earth up 2%; MP Materials, Energy Fuels up 1%.

The Metals Company stock made waves Wednesday after CFO Craig Shesky issued a warning to investors betting against the company. With 13.7% of shares sold short, Shesky said those positions could face trouble.

Shares jumped in extended trading after closing up 7% in the regular session. Shesky shared his views during a Rock Stock Channel podcast interview.

TMC focuses on extracting metals from the Pacific Ocean floor. The company plans to collect nodules containing copper, nickel, cobalt, and manganese. These materials power electric vehicles and clean energy infrastructure.

The stock has seen wild swings throughout 2025. After gaining as much as 854%, shares pulled back 49% from October highs. The recent November selloff marks the steepest monthly decline in over a year.

Regulatory Progress Accelerates Timeline

President Trump’s April executive order opened doors for deep-sea mining companies. The order aims to reduce American dependence on Chinese mineral supply chains.

TMC now engages with multiple federal agencies. Conversations with the Department of Energy and Pentagon continue to advance. Shesky expressed confidence about the regulatory trajectory.

“If I were short the stock right now, I would be quite nervous,” Shesky said on the podcast. He questioned the logic behind maintaining short positions given the company’s progress.

Roughly 25 million shares are currently short. Any breakthrough on regulatory approval could force those positions to cover rapidly.

Shesky suggested production might begin ahead of the Q4 2027 target date. He said faster regulatory clearance could accelerate operational timelines.

Strong Balance Sheet Supports Operations

TMC closed Q3 with $115 million in cash on hand. The company also maintains access to over $430 million through existing warrants if needed.

This financial cushion represents a turning point for TMC. Water Tower Research analyst Dmitry Silversteyn noted the company may be self-sufficient for the first time since its public debut.

The Q3 report showed a net loss of $184.5 million compared to $20.5 million last year. However, management emphasized the improved cash position offsets near-term losses.

Mineral Value Creates Investment Case

August technical assessments valued TMC’s seabed resources at $23.6 billion. The company trades at approximately $2 billion in market capitalization today.

This valuation gap forms the basis for bullish investors. If mining approval comes through, the stock price could adjust upward quickly.

TMC operates under exploratory permissions currently. Full commercial mining requires additional regulatory clearance. While the exact path remains undefined, management signals optimism.

“Given the fact that we are in a strong cash position and given the fact that we are on a very clear path towards regulatory certainty, I don’t quite understand what the bet against this would be,” Shesky stated.

November’s 17% decline followed eased U.S.-China trade tensions and the disappointing earnings report. However, the after-hours surge suggests investors focus on long-term mining potential over short-term losses.