The Metals Company (NASDAQ:TMC) reported its fourth quarter fiscal 2025 results on Friday, providing updates across its operations, including progress on its commercial production permit application with the National Oceanic and Atmospheric Administration (NOAA) and plans for a nodule processing and refining hub in Texas.
Wedbush analysts maintained an ‘Outperform’ rating on the deep sea mining company following the report, noting that TMC continues to advance its long-term strategic goals.
“We maintain our ‘Outperform’ rating as the company continues to chip away at its long-term strategy while looking to get its commercial permit during 2026,” they wrote.
However, the firm lowered its price target to $8 from $11 to reflect a lower valuation multiple. Shares traded down about 6% at about $4 on Monday afternoon.
The analysts view TMC’s progress on its NOAA commercial production permit and environmental impact statement positively, describing the momentum as a meaningful step toward commercial operations.
They also noted that joining the Defense Industrial Base Consortium (DIBC) enhances the company’s profile as a potential critical supplier for US government needs, particularly for rare earths and other critical minerals amid ongoing trade tensions with China.
On financials, Wedbush highlighted TMC’s strong liquidity position, around $117 million on the balance sheet with access to undrawn credit, as supportive of operations through the next 12 months.
Further, they highlighted the potential value of TMC’s 25% stake in The Metals Royalty Company (TMCR) and the flexibility it provides through non-dilutive royalty structures.
The analysts expressed cautious optimism regarding TMC’s Texas processing and refining hub, noting that while the company has not committed capital, the partnership with Mariana Minerals and the Bankable Feasibility Study could accelerate project development.
Wedbush characterized the approach as “strategically prudent,” leveraging software-driven operational planning while preserving optionality based on US government support.
“While TMC is leading this development with its consortium partners, the company has not made any capital commitments with further investments conditional on US government support while able to tap into capital-light tolling options being explored in Japan,” they wrote.
