Penny stocks can offer outsized upside for investors willing to embrace higher risk, but not all deliver on their early promise. Many trade under the radar until fresh catalysts spark a sharp move higher.
Among these micro‑caps, The Metals Company (TMC) just stole the spotlight. The deep‑sea mining pioneer secured a $37 million capital injection via a registered direct offering, issuing 12.3 million shares at $3 apiece. Backing the deal are heavyweight names like Michael Hess of Hess Capital and Brian Paes‑Braga of SAF Growth, alongside an existing institutional investor. This funding positions TMC to accelerate its polymetallic nodule harvesting plans in international waters.
Even more compelling, President Donald Trump’s April 2025 executive order aims to fast‑track seabed mining permits, evaluate offtake rights, and potentially direct federal investment to counter China’s market dominance in critical minerals like nickel and copper. With fresh funding and a favorable policy tailwind, TMC could be on the cusp of a transformative growth phase.
For investors weighing whether to buy shares now, here’s what makes TMC a standout deep‑sea mining play.
About TMC Stock
TMC, founded in 2011, is a Canadian company exploring deep-sea mining in the Clarion-Clipperton Zone between Hawaii and Mexico. Although it has not yet mined any critical minerals, it has completed several pilot and test missions. It also continues to seek all of the necessary regulatory permits and licenses.
Shares are up more than 200% in the year to date, largely driven by Trump’s executive order.
Despite this rally, TMC still needs to prove its technology works in large operations and clear environmental reviews. The company currently boasts a market cap of $1 billion.
Trump Executive Order Backs Deep-Sea Mining Push
In April 2025, Trump issued an executive order fast-tracking deep-sea mining permits and directing the Department of Defense to consider stockpiling seabed minerals. This move could accelerate The Metals Company’s operations in the Clarion-Clipperton Zone, enabling earlier revenue generation.
By adding these critical minerals to the national stockpile, the U.S. aims to curb dependence on foreign suppliers, particularly China, and create a more predictable regulatory environment by challenging the International Seabed Authority’s jurisdiction. While environmental concerns remain, proponents maintain that responsible ocean mining can supply the essential resources needed for advanced technologies and national security, positioning The Metals Company as a frontrunner in the emerging deep-sea mining sector.
TMC Reported Better-Than-Expected Q1 Results
On May 14, The Metals Company released its Q1 earnings, reporting a loss per share of $0.06, which topped estimates of a $0.10 loss. The company narrowed its net loss to $20.6 million, or $0.06 per share, down from $25.2 million, or $0.08 per share, a year earlier. More focused drilling programs cut exploration and evaluation expenses in half, dropping them from $18.1 million to $9.5 million.
Similarly, operational cash use fell to $9.3 million from $11.8 million in Q1 2024, resulting in a free cash flow shortfall of $9.4 million versus $12.1 million a year ago.
At quarter-end, TMC held $44 million in cash, which will rise to $81 million after closing a $37 million registered direct offering on May 12. The company also increased its credit facility by $6 million and raised $5.7 million through an “at-the-market” equity program, giving it a combined cash and undrawn credit capacity of $41.5 million, enough to cover planned spending for at least the next 12 months.
On the operational front, TMC has filed a commercial recovery license application with NOAA to harvest polymetallic nodules in the Clarion-Clipperton Zone and expects to complete a pre-feasibility study in Q2 2025 to refine its resource estimates. It has formalized partnerships with Allseas and PAMCO to use existing maritime assets, reducing upfront capital needs, and continues to engage U.S. regulators and the International Seabed Authority as it advances toward commercial deep-sea mining.
Analysts forecast it will generate its first revenue in 2027 once permits are secured and nodule extraction begins.
What Do Analysts Think About TMC Stock?
Wall Street analysts are upbeat on TMC stock prospects, giving a consensus “Moderate Buy” rating. Of the two analysts tracked by Barchart, one has a “Strong Buy” rating and the other a “Hold” rating.
The small group has set a mean price target of $6.08, which implies more than 75% upside potential from current levels.
