TMC the metals company Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a net loss of $28.4 million ($0.06 per share) for the quarter ended September 30, 2026, compared to a net loss of $184.5 million ($0.46 per share) for the same period in 2025.
• Cash used in operations for the quarter ended September 30, 2026, was $19.4 million.
• Exploration and evaluation expenses were $23.5 million for the quarter, an increase from $9.6 million in the prior year period.
• General and administrative expenses were $9.5 million for the quarter, a decrease from $45.7 million in the prior year period, driven by a $32.7 million reduction in share-based compensation and lower legal fees.
• Held cash of approximately $79.3 million as of September 30, 2026, with no financial debt.
• Total liquidity available from cash on hand and credit facilities was approximately $123 million as of September 30, 2026.
• Total assets were $159.5 million as of September 30, 2026, down from $181.6 million as of December 31, 2025.
• Total liabilities were $203.3 million as of September 30, 2026, down from $215.1 million as of December 31, 2025.
• Total equity was negative $43.7 million as of September 30, 2026, compared to negative $33.4 million as of December 31, 2025.
• For the nine months ended September 30, 2026, net loss was $109.1 million ($0.25 per share) compared to $279.4 million ($0.75 per share) for the same period in 2025.

Guidance and Future Outlook:

• NOAA expects to notify TMC USA of its final determination regarding certification of the USA-A consolidated application by mid-December 2026.
• The Company expects issuance of the commercial recovery permit in advance of the targeted Q4 2027 offshore collection system commissioning.
• The Company believes the operation will be EBITDA-positive in its first years even at lower initial volumes.
• The phased production approach aims to reach steady-state production of 12 million wet tonnes per annum, aligned with operational performance and available funding.
• The Company intends not to pursue other capital market transactions until U.S. government funding processes for the Brownsville processing facility are completed.
• Management expects cash on hand and credit facilities to be sufficient to meet working capital and capital expenditure commitments for at least the next twelve months.

Business Segments and Product Lines:

• Advancing a capital-light approach with Allseas to enable start of commercial operations upon permit grant, reducing upfront investment and operating costs.
• A second production vessel is planned to enable Hidden Gem to undergo full-capacity conversion in Year 3 while maintaining continuous production.
• Engaged in a phased program with Mariana Minerals to advance a proposed polymetallic nodule processing and refining industry park at the Port of Brownsville, Texas.
• Exploring the use of PAMCO's existing processing facility in Japan for initial nodule processing, pending modifications and definitive agreements.
• TMC USA entered a Master Services Agreement with Mariana Minerals for concept development, technical design, and feasibility work for the Brownsville facility.
• TMC and Eco Minerals entered an exclusive agreement for vessel charter and marine survey services, including advanced seafloor mapping and autonomous survey capabilities.

Market and Competitive Landscape:

• NOAA received over 1,600 public comments during the public comment period for the USA-A application which closed on October 19, 2026.
• The USA-B exploration license application covers approximately 122,000 km² of seafloor in the Clarion Clipperton Zone, hosting an estimated 1.02 billion tonnes of polymetallic nodules.
• Mesabi Metallics announced a $15 billion investment in a new steel complex in Iowa and $3 billion for an iron ore mine in Minnesota, with TMC holding a 2.0% Gross Overriding Royalty on the project.
• Mariana Minerals raised $310 million in Series B financing, bringing total capital raised to approximately $400 million.

Risks and Challenges:

• Certification is an intermediate step in NOAA's review and does not constitute approval or issuance of any license or permit.
• There is a risk of further delay in the permitting process, as there is no mandatory statutory deadline under the Deep Seabed Hard Mineral Resources Act (DSHMRA).
• Legal challenges by third parties in U.S. courts could impact the issuance of licenses, including the pending action challenging NOAA's certification of the USA-B application.
• The Company faces risks related to the ability to obtain an exploitation contract from the International Seabed Authority (ISA) and the outcome of proceedings brought by subsidiaries Nauru Ocean Resources Inc. and Tonga Offshore Mining Limited against the ISA.
• There is a risk that the initial production system may not reduce capital or operating costs as expected, or that the addition of a second vessel and scale-up may not occur on the anticipated timeline.
• The Company depends on U.S. government funding for a majority of onshore capital spending, with a risk that funding processes may not result in favorable terms or awards.

Management Commentary and Tone:

• Chairman & CEO Gerard Barron expressed confidence that the permit could be obtained by the following year, noting the thorough review provides long-term durability and legal defensibility.
• Management emphasized prioritizing speed to first production and lower upfront investment over targeting maximum capacity from day one.
• Barron highlighted the challenge of having the Brownsville facility operational in time to receive the first nodules, suggesting reliance on the PAMCO partnership for initial processing.
• Management noted due diligence is progressing at full pace regarding the Brownsville plant, with two U.S. government agencies considering financial support.

Other Key Points:

• Liam Mallon, former President of ExxonMobil Upstream Company, was appointed to the Board of Directors on September 29, 2026.
• The Allseas obligation was settled with equity, resulting in the issuance of 7,305,567 shares.
• The Company reported a charge of $7.9 million on the Allseas settlement for the nine months ended September 30, 2026.
• A $15 billion investment by Mesabi Metallics in a U.S. steel complex was confirmed, which supports the demand for manganese required for steel production.
• Mariana Minerals' software-first platform, MarianaOS, is designed to cut traditional project timelines roughly in half.