Q2 2024 TMC the metals company Inc Earnings Call Transcript
Key Points
- TMC The Metals Co Inc (TMC) reported improved liquidity, increasing from $40 million at the end of June to higher levels in August due to upsized borrowing limits on credit facilities.
- The company raised $2.6 million through its ATM at an average share price of $1.61, demonstrating judicious use of market opportunities.
- TMC welcomed two new directors to its Board, Steve Jurvetson and Brendan May, bringing expertise in disruptive technologies and sustainability, respectively.
- Geopolitical tailwinds are favorable for TMC's industry, with increased focus on seafloor resources by major economies like the US, China, India, Norway, and Japan.
- TMC's NORI and TOML projects are ranked as the largest two undeveloped nickel projects in the world, with a nickel equivalent grade of roughly 3%, indicating strong profitability potential.
- TMC reported a net loss of approximately $20.2 million or $0.06 per share in Q2 2024, compared to a net loss of $14.1 million or $0.05 per share in Q2 2023.
- Exploration evaluation expenses increased to $12.4 million in Q2 2024 from $8.1 million in Q2 2023, primarily due to increased engineering work and share-based compensation.
- General and administrative expenses rose to $7.9 million in Q2 2024 from $5.1 million in Q2 2023, driven by higher personnel costs and increased legal and consulting fees.
- Free cash flow for Q2 2024 was negative $12.2 million, compared to negative $8.5 million in Q2 2023, indicating higher cash burn.
- TMC's market cap is significantly lower than the nearly $0.5 billion spent since inception, reflecting a substantial discount to the underlying asset value.
Good day and thank you for standing by. Welcome to The Metals Company second-quarter 2024 corporate update conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Craig Shesky, CFO. Please go ahead.
Thank you. Please note that during this call, certain statements made by the company will be forward-looking and based on management's beliefs and assumptions from information available at this time. These statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Additionally, please note that the company's actual results may differ materially from those anticipated and, except as required by law, we undertake no obligation to update any forward-looking statements.
Our remarks today may also include non-GAAP financial measures, including with respect to free cash flows, and additional details regarding these non
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