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Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>Eventful start to the year. Last week, TMC provided the investment community with an update on its business performance, 1Q25 financial results, and events that took place after the close of the quarter, which included completing a successful capital raise and filing three applications with the NOAA for exploration and commercial collection of polymetallic nodules in the Clarion-Clipperton Zone (CCZ) of the Pacific Ocean.</li><li>1Q25 operating loss and cash use rates reduced. TMC’s 1Q25 operating loss of $18 million improved from the year-ago loss of $24.7 million as an $8.6 million decline in exploration and evaluation expenses was partially offset by a $1.9 million increase in general &amp; administrative expenses.</li><li>TMC used $9.3 million in cash during the quarter, slowing its cash burn rate from last year’s $11.8 million.</li></ul>

Eventful start to the year. Last week, TMC provided the investment community with an update on its business performance, 1Q25 financial results, and events that took place after the close of the quarter, which included completing a successful capital raise and filing three applications with the NOAA for exploration and commercial collection of polymetallic nodules in the Clarion-Clipperton Zone (CCZ) of the Pacific Ocean.1Q25 operating loss and cash use rates reduced. TMC’s 1Q25 operating loss of $18 million improved from the year-ago loss of $24.7 million as an $8.6 million decline in exploration and evaluation expenses was partially offset by a $1.9 million increase in general &amp; administrative expenses.TMC used $9.3 million in cash during the quarter, slowing its cash burn rate from last year’s $11.8 million.

TMC US: Capital Injection and Regulatory Clarity Pave the Way for Sprint Toward Approval

Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

<p>President Trump’s recent executive order on offshore critical minerals and resources has reinvigorated American interest and regulatory activity in deep-sea mining using existing US legislation. The Metals Company (TMC) has since leveraged its leading position to file for commercial recovery and exploitation licences in the US rather than through the International Seabed Authority (ISA). With a mandated 60-day initial turnaround, the timeline for the full process is expected by mid-July, offering the potential for accelerated award and commencement of nodule collection. A licence award is arguably the key to TMC’s commercial success.</p>

President Trump’s recent executive order on offshore critical minerals and resources has reinvigorated American interest and regulatory activity in deep-sea mining using existing US legislation. The Metals Company (TMC) has since leveraged its leading position to file for commercial recovery and exploitation licences in the US rather than through the International Seabed Authority (ISA). With a mandated 60-day initial turnaround, the timeline for the full process is expected by mid-July, offering the potential for accelerated award and commencement of nodule collection. A licence award is arguably the key to TMC’s commercial success.

The Metals Company — Changing tack; US licence application filed

<ul>
<li>The WTR Sustainable Index was up 0.3% W/W versus the S&amp;P 500 Index (down 0.2%), the Russell 2000 Index (up 0.4%), and the Nasdaq Index (flat).</li>
<li>Energy Technology (13.4% of th  index) was down 3.0%, while Industrial Climate and Ag Technology (47.7% of the index) was down 0.1%, ClimateTech Mining was down 0.3%, and Advanced Transportation Solutions (20.8% of the index) was up 0.5%.</li>
<li>
<strong>Top 10 Performers</strong>: TMC, FGPHF, INVZ, GCEH, NXH, MP, WWR, PSIX, OUST, ADSE</li>
</ul>


The WTR Sustainable Index was up 0.3% W/W versus the S&amp;P 500 Index (down 0.2%), the Russell 2000 Index (up 0.4%), and the Nasdaq Index (flat).
Energy Technology (13.4% of th  index) was down 3.0%, while Industrial Climate and Ag Technology (47.7% of the index) was down 0.1%, ClimateTech Mining was down 0.3%, and Advanced Transportation Solutions (20.8% of the index) was up 0.5%.

Top 10 Performers: TMC, FGPHF, INVZ, GCEH, NXH, MP, WWR, PSIX, OUST, ADSE


Sustainable Investing Surveyor Focus on T1 Energy (TE)

<ul><li>New administration could provide new opportunities.</li><li>With the new Trump 2.0 administration now in control of the US’ domestic and foreign policies, changes to how the federal government will address the energy transition trend and Chinese dominance of the related supply chains could have a profound impact on metal resource developers like TMC, which should be positive for the company and its stakeholders.</li><li>From talking to doing. The Pentagon has yet to deliver its report (originally due March 2024) on the feasibility of processing polymetallic nodules in the US, required by the 2024 NDAA, having potentially slow-walked the project during the previous administration.</li></ul>

New administration could provide new opportunities.With the new Trump 2.0 administration now in control of the US’ domestic and foreign policies, changes to how the federal government will address the energy transition trend and Chinese dominance of the related supply chains could have a profound impact on metal resource developers like TMC, which should be positive for the company and its stakeholders.From talking to doing. The Pentagon has yet to deliver its report (originally due March 2024) on the feasibility of processing polymetallic nodules in the US, required by the 2024 NDAA, having potentially slow-walked the project during the previous administration.

TMC - New Administration Policies' Potential Impact on Critical Metals Industry and TMC

<ul><li>3Q24 update. TMC’s income statement expenses rose from $12.5 million in 3Q23 to $20.0 million in 3Q24 on higher legal and consulting costs, and share-based compensation accounting.</li><li>However, quarterly cash use slowed from $12.5 million in the year-ago period to $5.7 million and management reaffirmed its intention to reduce cash use to less than $5 million/quarter once the ISA exploitation application is submitted for review.</li><li>Submission date set. TMC initially intended to submit its NORI- D application to the ISA before the end of 2024 or before the first ISA meeting in 2025 (scheduled for March).</li></ul>

3Q24 update. TMC’s income statement expenses rose from $12.5 million in 3Q23 to $20.0 million in 3Q24 on higher legal and consulting costs, and share-based compensation accounting.However, quarterly cash use slowed from $12.5 million in the year-ago period to $5.7 million and management reaffirmed its intention to reduce cash use to less than $5 million/quarter once the ISA exploitation application is submitted for review.Submission date set. TMC initially intended to submit its NORI- D application to the ISA before the end of 2024 or before the first ISA meeting in 2025 (scheduled for March).

The Metals Company, Inc. - Setting Application Submission Date and Raising Capital to Get There

Canada

TMC the metals company Inc. operates as an electric vehicles battery metal company. The Company produces metals from polymetallic rocks to store clean energy and power electric vehicles. TMC the metals serves customers worldwide.

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TMC the metals co (TMC US)

TMC US: Capital Injection and Regulatory Clarity Pave the Way for Sprint Toward Approval

Last week, TMC provided the investment community with an update on its business performance, 1Q25 financial results, and events that took place...

Water Tower Research

The Metals Company — Changing tack; US licence application filed

President Trump’s recent executive order on offshore critical minerals and resources has reinvigorated American interest and regulatory activity in...

Edison Investment Research

Sustainable Investing Surveyor Focus on T1 Energy (TE)

The WTR Sustainable Index was up 0.3% W/W versus the S&P 500 Index (down 0.2%), the Russell 2000 Index (up 0.4%), and the Nasdaq Index (flat).

Water Tower Research

TMC - New Administration Policies' Potential Impact on Critical Metals Industry and TMC

With the new Trump 2.0 administration now in control of the US’ domestic and foreign policies, changes to how the federal government will address...

Water Tower Research

The Metals Company, Inc. - Setting Application Submission Date and Raising Capital to Get There

TMC’s income statement expenses rose from $12.5 million in 3Q23 to $20.0 million in 3Q24 on higher legal and consulting costs, and share-based...

Water Tower Research

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