New York--(BUSINESS WIRE)--(BUSINESS WIRE)--The Metals Company (Nasdaq: TMC) ("TMC" or "Company") is an explorer of submarine polymetallic nodules and low-impact battery metals, today provides The financial results for the third quarter ended on September 30, 2021, and a company update was announced.
"At COP26, governments around the world are committed to the rapid transformation of energy and transportation. Surprisingly, this transformation begins and ends with metals," said Gerard Barron, Chairman and CEO of The Metals Company. "To achieve net zero globally by 2050, the mineral input required by 2040 will be six times what it is today. If you take nickel-essential for electric vehicles and batteries-nickel input needs to increase by 19 times Most of this growth will come from tropical rainforests, our key carbon sink. With the funds we raised in the third quarter and TMC is now a listed company, we can play a key role by providing low-carbon and low-impact products to ensure Minerals have become the promoters of the energy transition, not the bottleneck of the energy transition from battery metals such as nickel and copper, the largest estimated source on the planet."
TMC reported that the net loss in the third quarter of 2021 was US$36.7 million, or US$0.18 per share, while TMC’s net loss in the third quarter of 2020 was US$6.8 million, or US$0.04 per share. Exploration expenses in the third quarter of 2021 were US$23.8 million, compared to US$4.6 million in the third quarter of 2020. General and administrative expenses for the third quarter of 2021 are USD 13.3 million, compared to USD 2.2 million for the third quarter of 2020.
The increase in exploration expenses is mainly due to the US$12.9 million related to the first two milestone payments accrued to Allseas in 2021 under the revised PMTS agreement. The cost of marine activities during 2021 has increased by US$2.8 million compared to the period in 2020. Compared with fewer activities in the same period last year, more activities were carried out in the third quarter of 2021, and stock-based compensation expenses during 2021 increased by $2.8 million compared to the period in 2020 due to the first quarter of 2021.
The increase in general and administrative expenses is due to an increase in stock-based compensation expenses of US$5.3 million compared to the 2020 period. This is due to the revision of certain stock option grants that extend the period beyond the retirement provisions, resulting in expenses of US$3.9 million and the time to confirm the cost of stock options granted in the first quarter of 2021. In addition, we have also increased the professional fees associated with the merger of DeepGreen Metals, Inc. and sustainable opportunities acquisition companies, and other costs associated with this. A public company with a market value of US$2.4 million. Overall, during the three-month period ending September 30, 2021, our business activities increased and incurred additional marketing costs of US$2.2 million and personnel and director expenses of US$700,000, compared to the same period last year The marketing cost incurred was US$700,000.
Restatement of previously issued financial statements
The results in this earnings release include the impact on the restatement of quarterly financial statements released before the three months ended March 31, 2021 and the six months ended June 30, 2021. (a) As of June 30, 2021, certain invoices for exploration expenses were not properly accrued, and (b) the option granted in the first quarter of 2021 was calculated based on the historical start date of the grantee and the company instead of the date of option grant Expenses March 4, 2021. A summary of the impact of the restatement on previously issued financial statements is included at the end of this press release.
Liquidity, capital allocation and key milestones
As of September 30, 2021, TMC holds US$112.6 million in cash and cash equivalents and has no debt. This cash position is expected to enable TMC to achieve four key milestones by the end of the third quarter of 2023:
TMC will hold a conference call today at 4:30 pm Eastern Time to provide updates on recent company developments, third quarter financial results, and upcoming milestones.
Date: Thursday, November 11, 2021 Time: 4:30 PM Eastern Time Virtual Webcast: Register here toll-free dial-in number: (844) 200-6205 International dial-in number: (929) 526-1599 Conference ID : 688797
Please dial the conference call 5-10 minutes before the start time. The operator will register your name and organization. If you encounter any difficulties connecting to the conference call, please call Gateway Investor Relations at 1-949-574-3860.
The conference call will be a virtual webcast and can be replayed under "Media"> "Events and Presentations" in the "Company-Investor" section of the TMC website.
A replay of the conference call will also be provided on the same day as U.S. Eastern Time until after 6:30 PM on November 18, 2021 through the following information:
Free replay number: (844) 200-6205 International replay number: (929) 526-1599 Replay ID: 146384
The Metals Company is an explorer of low-impact battery metals in submarine polymetallic nodules. Its dual missions are: (1) Provide metals for the transition to clean energy and minimize the negative impact on the environment and society; (2) Accelerate the transition to clean energy Transformation into a circular metal economy. Through its subsidiaries, the company holds the exploration and commercial rights of three polymetallic nodules contract areas in the Pacific Clarion Clipperton area supervised by the International Seabed Authority and sponsored by the governments of Nauru, Kiribati and the Kingdom of Tonga.
For more information, please visit www.metals.co.
Certain statements in this press release are not historical facts, but forward-looking statements for the purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually accompanied by such things as “believe”, “may,” “will”, “estimate”, “continue”, “expect”, “intend”, “anticipate”, “should”, “will”, “plan”, "Forecast," "potential," "seem," "seeking," "future," "forecast," and similar expressions that predict or indicate future events or trends, or are not statements of historical events. The forward-looking statements contained in this press release include, but are not limited to, statements regarding TMC’s expectations and timing of key milestones, estimates of the development of battery metal resources, the timing of their application to ISA for development, and potential regulatory approvals. TMC battery metal supply current or future market size and potential growth, TMC's expectations of the results or results of its activities and explorations, cash on hand sufficient to meet working capital and capital expenditure requirements and certain milestones, the timing and source of future revenue and expenditures And amounts and restatements of TMC’s financial statements. These forward-looking statements involve significant risks and uncertainties, which may cause actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside the control of TMC and are difficult to predict. Factors that may cause such differences include, but are not limited to: regulatory uncertainty and the impact of government regulation and political instability on TMC resource activities; any changes in laws, rules, regulations, or policies that TMC is subject to; extensive and costly The impact of environmental requirements on the operation of TMC and the time to complete the environmental impact assessment; environmental responsibility; the impact of polymetallic nodules collection on CCZ biodiversity and the restoration rate of affected ecosystems; TMC develops sufficient grade or quantity of minerals to prove its commercial operations Underdeveloped seafloor polymetallic nodule deposits; uncertainty in the calculation of mineral resources in certain contract areas and the grade and quality estimates of polymetallic nodule deposits; risks associated with natural disasters; polymetallic nodules that may be recovered by TMC Uncertainty of special handling and processing; risks associated with collective, development, and handling operations; fluctuations in transportation costs; testing and manufacturing of equipment; risks associated with TMC's limited operating history; the impact of the COVID-19 pandemic; and TMC’s intellectual property-related risks; and other risks and uncertainties indicated from time to time in the prospectus filed with the U.S. Securities and Exchange Commission ("SEC") on October 22, 2021, including the content under "risk factors", and TMC will submit other documents to the Securities and Exchange Commission in the future. TMC reminds that the above list of factors is not exclusive. TMC warns readers not to rely too much on any forward-looking statements, which are only published on the date of publication. TMC does not undertake or accept any obligation or commitment to publicly release any update or revision of any forward-looking statements to reflect any changes it anticipates or any changes in the events, conditions or circumstances on which any such statements are based, unless required by law.
Condensed consolidated balance sheet of TMC the metal company Inc. (in thousands of U.S. dollars, excluding share value) (unaudited)
Accounts payable and accrued liabilities
Ordinary shares (unlimited shares, no par value-issued: 224,385,324 (December 31, 2020-189,493,593))
Preference shares (unlimited shares, no par value-issued: none (December 31, 2020-509,459))
A-J special shares
TMC the metal company Inc. Condensed consolidated loss and consolidated loss statement (in thousands of U.S. dollars, excluding stock and per share amounts) (unaudited)
Changes in the fair value of warrant liabilities
Current loss and comprehensive loss
Weighted average number of common shares outstanding-basic and diluted
TMC the metal company Inc. Condensed consolidated cash flow statement (unit: thousands of dollars) (unaudited)
Cash resources provided by (used for)
Expenses settled by share-based payment
Changes in the fair value of warrant liabilities
Accounts payable and accrued liabilities
Net cash used in operating activities
Net cash used for investment activities
Proceeds from issuance of convertible bonds
Proceeds from the issuance of ordinary shares (net of fees and other costs)
Income from business combination (deduct fees and other costs)
Net cash provided by financing activities
Net changes in cash and cash equivalents
effect of the changes of the exchange rate on cash and the equivalents
Cash and cash equivalents-beginning of period
Cash and cash equivalents-end of period
Restatement of previously issued financial statements:
The following summarizes the impact of restatement on each financial statement item during each reporting period.
TMC Metals Inc. Condensed Consolidated Balance Sheet
(In thousands of U.S. dollars)
Accounts payable and accrued liabilities
TMC the metal company Inc. Condensed consolidated loss and consolidated loss statement (in thousands of U.S. dollars, excluding the amount per share) (unaudited)
Current loss and comprehensive loss
Loss per share-basic and diluted
TMC the metal company Inc. Condensed Consolidated Statement of Changes in Shareholders' Equity (Unit: US$'000) (Unaudited)
TMC the metal company Inc. Condensed consolidated cash flow statement (unit: thousands of dollars) (unaudited)
Expenses settled by share-based payment
Accounts payable and accrued liabilities
The following summarizes the impact of the restatement on each item listed in the previously unaudited pro forma condensed consolidated financial information for the six months ended June 30, 2021.
The unaudited pro forma condensed consolidated balance sheet of TMC the metal company Inc. as of June 30, 2021 (amount in U.S. dollars)
Accounts payable and accrued liabilities
TMC the metal company Inc. Unaudited pro forma condensed consolidated operating statement for the six months ended June 30, 2021 (in U.S. dollars, except per share data)
Current period (income) loss
Comprehensive (income) loss for the current period
Loss per share (income)-basic and diluted
Media | media@metals.co Investor | Investor@metals.co Dan Gagnier | Gani Newsletter | tmc@gagnierfc.com
Media | media@metals.co Investor | Investor@metals.co Dan Gagnier | Gani Newsletter | tmc@gagnierfc.com