TMC the metals (TMC) 11 May 232023 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to The Metals Company First Quarter 2023 Corporate Update Conference Call. [Operator Instructions] Please be advised today's conference is being recorded.

I would now like to hand the call over to your speaker, The Metals Company CFO, Craig Shesky. Please proceed.

much. very you Thank during be certain management's forward-looking information time. assumptions that the beliefs made company from this at will and available this note statements call, by and Please based on press to statements may of be in found that which our release. our known These harbor beyond corporate first subject and risks quarter for many be set and those including end can provision at our unknown XXXX control, safe the of uncertainties, forth update statements are forward-looking also XXXX, may our with report reports statements XXXX. XX-Q in Such be year XX, annual March our filed on found the for for ended subsequently ended the the including Form and XX-K SEC December quarter XX, other then risks I'll about detail business. provide further the our related to

results actual may required any company's the differ except from forward-looking anticipated, obligation that note law, statements. please by to those as undertake and we no update materially Additionally,

these free at found respect Our and slide additional remarks including And website deck. available measures, today deck of with measures financial the may is include on flows cash our non-GAAP slide non-GAAP our can investors.medals.co. to also details on be

now turn it over Gerard Barron. to I'd Gerard, please like ahead. Chairman and go our to CEO,

afternoon, today you XXXX and and for joining all us Thank Craig, update call. you, for good quarter first our thank corporate

with to financial on since You that you're Seabed the we'll more at world, time I'd Since now generating I'd with the first investors.metals.co. with and are slide occurred going joining of like weakness progress certification headlines and but our and Act. our last internal for entire enhancing under our XXXX our progress removal controls XXXX, at quarter we've company filed Officer, leading mature set public can procedures end team, Authority highlight at welcome system including if call, CFO from a myself the at the of milestones Accounting required International turn of has culminating like Chief to an about continuous XXXX finance material the update our all by important exciting public, cover that during been as some to any It's weeks for later. follow our our around deck the Sarbanes-Oxley us quarter. as X you or our controls. along the but with with thank been Plourde, access by phone, only Claude

We does at Allseas. affiliate unsecured million QX million an in announced the and million March with credit remains $XX with over equity our cash This $XX also program. market of in new a facility as today facility ended untapped $XX

information. of $XXX of LCR's to in excited strategic We acquisitions on sites fixed we LCR's of production, royalty We to XX% about opportunities equity with to lowcarbonroyalties.com signs trend continues and their partnership an SINU-X a our bring acquired on source of block, as into royalty call we overriding estimation, additional of management LCR net term please has corporate projects pipeline total in Conchita for March royalties over mentioned an pipeline on NORI-D XX% in in repurchase its the potential to million in natural at of that also be We're other to and effectively gross announced America, a stake February to potential. In and with other NORI royalty overriding gross TMC valuation XXXX, X% last doubling LCR to block and value asset MG on sheets the fields royalties and royalty presentation, the Energy's additional Latin gas LCR a a royalty that million show return. the X.X% believe and Maria head $X a partnership. potential and of which for this the up well. low capital of on LCR indicating adding exchange carbon more right a in upward contributed in X.X%

the to on So agenda.

place. you the and that page. minority At March value with in the adopting the ISA this thank the innovative for note member the commitment and for project is happening States proposition of a Union a on and progress ESG of regime and both are formal an of recent items: XXXX number update, small Member take to the and to states in and a update the brief includes TMC's their key work is pause made ISA procedures. course, rules, between. session, our XXX Today, NORI-D member significant even we'll progress It all summary moratorium yellow through following like working And or efforts, reiterated intersection some update. and regulatory European states get financial important regulations would our the Secretaries their a of represented diligently this on and text of these regulatory of precautionary I states on aspects this sessions of to a the regulatory more final information reminder in tremendous to calling at observers news, that market

of is Fortunately, United others. Law on the Nations convention of this by Convention the no there room follow and the the to industry certain while wiggle is Sea, guided parts ignoring

tweeted but the this what we for and Energy contains the reporter, approached issue legal news from Eric regulations, has progress Major Environment the York session new Times it this an there we'll Minister slide, no acknowledgment out the by lay some starts, takeaways or last there from moratorium were and up put the March when, of Lipton. UNCLOS the also ISA of next of various of has picked that though obligation ISA And reporting Italy's on increasing is New to the precautionary As question not a basis conclusion coverage a is the repose. think session. major is negotiate on angles, as the week, following the if industry the

to pleased to made their were the we progress code. of significant and the commitment reiterated states the regulations, mining known rules, by many member all Further, of aspects the as mining see states on adoption Firstly, code. procedures

that in Commission, review to it after code or council. to application the has the before recommendation the the confirmed is a obligation July plan submitted And an shall confirmed Technical a ISA applications a XXXX. place, council work the exploitation and LTC, the consider provide and mining final for Legal of Regarding

course, prefer Of my start with exploitation operations code. final we mining granted under would much the to contract an

exploitation to our to reserve with application for we through an application continued meeting environmental to under Republic a Together July lodge work. impact is only we the NORI the a the or assessment contract look high-quality, after at However, an ongoing But before commercial the intersectional and forward rights we upcoming an adopted. code of submitting and complete mining science-driven comprehensive legal commits social UNCLOS ESIA. progress Nauru, and

X to this of credibility, amazing potential development and in world's the X the polymetallic basis Research licenses seafloor Newspaper West and them, and second quarter, interest reliance while extension and battery industrial Last February, in to discussed we in official time largest of China upon into And of nodules. system Association, China the was that major Technology was players, of up for for for resources seabed intention exploration nodule reduce Samsung a nodule in of of its companies whom in from several currently publicly and nodule ahead producer Transocean's integrated to contracted on have China, Conference, with spent to interviewed in is space. exploration Development production COMRA, that the for page conversion providing March, I their Offshore Resources in seafloor systems proceed noted some all with scheduled efforts the test will Ocean continues GSR's last And within Daily Belgian TMC's vessel, in interest position as exploitation accelerating its stepping invest a resources granted polymetallic a developments contract for in announced XX,XXX minerals signed at for we a a interest years. increased China reported countries industry. it be week the in holds to announcement or the the on to position article including see state XXXX. China know offshore Mineral this Houston collection the leadership itself this the investment it grow space. In the drillship Chinese currently metals

nodule battery On our to of car proposition, Each page represent resource the NMCXXX enormous. with electrify is this a chemistries. our required metal X million to scale based on on little value the vehicles XX-kilowatt-hour

And and situ but or this projects, month, is and Earlier is among the an grades of largest significant often the this of And and quantities more U.S. again containing #X. equivalent cobalt margins, amount water equivalent for get nickel with affects it and nickel attribute, one this ore when of the it has TMC's demand mining.com with NORI falling copper, exponential page. on to requirements nodules which other grade projects several projects. of more peers between Y-axis and resource several solid increase greenlight at requires our reshuffling and copper, equivalent the the of [indiscernible]. key And the in future as focusing outlier estimated higher is the have have It so new same in an and projects. And differential this NORI-D on prices largest metal, land world's bottom grades TMC nickel, producers TMC's our nickel moved mix, couple highest some grade equivalent resource. requiring the declined million notice the TOML of net vehicles energy about resources. to And on X.X% remain for more this nickel And grade. the to XX conventional recent negatively world's technologies #X over per you the and life in Benchmark for in NORI use. sharply updated waste. ton is use fleet. and rankings the passenger XXX and entire the nickel equivalent cycle undeveloped And XXXX present grades manganese you'll nickel Our for metals, the value highlighted this within highlighted X nickel their it the rising where roughly there metal, potential released time, with nodules of of key compared economics becomes land and impacts clean energy projects and metals top for land-based grade undeveloped which which use, reasons. more the means same the differential important both on to projects a the was compression at analysis Canadian impacts tailings allows year. TMC's as comparing nickel environmental is TOML X largest areas

project, our of with an NORI-D entails. explanation On project to starting the what

of project, over the supply NORI-D the excess from fully component seafloor application see the been $XXX work first to project, portfolio, exploitation these means to on turned resource in producing our NORI-D, seeing ambitions this the years of nodules zero Hatch. products. in sheet almost our parties And onshore multiple be last And the from in this decade. At estimated we've all that zero significant chains stage, into showing a lab we've onshore design spent project when industry-leading processing as some would has gate. flow several this in on successful on with to focused in across partner, waste sheet a of flow coming their a critical metal And the bulk while the of offshore deliberate logistics Zooming collection, total help decade. is of million growth of past actually near center is the is While made and transport XX% that the over solid using tailings. interest in industry factory ISA our metal taking and transition of nodules mass nodule representing choices to the support sector the produce energy we're additionally, time the reshoring and coming can bench-scale our our integrated the very

slide summarizes the of the this this flow through how sheet. Well, So material is progression possible?

in level XXXX. stages the on successfully pyrometallurgical demonstrated pilot With a

are First to from minerals. heated calcine where step the hydroxide the remove is nodules water

which metal in calcine a smelters, produces rich and the manganese silica copper products. Next, nickel, and alloy cobalt

is also the which copper on So with because conventional, metals we of to product so choose, to refineries refining product can zero the and matte of to battery conventional concentrated battery-grade matte sell nodules. cobalt. the silica with the existing scope, nickel, relatively contains this waste of And near side the the tailings of manganese the mass is right since can intermediate products we sulfate is the matte matte, straightforward alloy reduce most is conventional. If be no upgraded and And a the page. possible

is toxic a portions. the ] [indiscernible] byproduct nodules the commonly isn't is land. used and over. non left of management world naturally tailings all which alloy salable certain today. also as just the lower aggregate often lot remaining with is material products plan contain A this specific waste with difficult more on products levels road manganese saleable elements, our the there produced So And the of require and PAMCO. silica metals lag possible around The aggregate initial Fairlife And Japan or nickel-copper other are materials. or cobalt first [

great evaluation any nodules report system time and initial Allseas pilot requirements, test, achieve market were a milestones that their polymetallic XX-tonne that additional the NORI stated tonnes approximately We signed PAMCO the reducing PAMCO us the expected or cost collection our PAMCO significant collecting processing nodules in to and costs. tonnes made of all nodules set more quarter with achieved MOU currently while upfront to facility X,XXX their had tolling in both as commercial get over annum the production, we up gem X,XXX our and of of with nodules non-binding fourth during and In the million their tonnes pleased the of in potentially was historic in March, of can collection. smelting of wet to which strategy pipe, a of to from up these of see a equipment the wealth important first help most starting X.X-kilometer nodules the vessel. to to year's we system on takeaway impacts into X.X be collected to sample perhaps existing evaluate lifted our Japan those minimal. Working using per polymetallic have Using at the announced facilities last were trials data was it XXXX. gathered as riser are And hidden strides nodule environmental of capital-light

ISA's our information detailed Let collected work In environmental In me during by definition we which data world's the over done of Monitoring some share platform. million begun as and alone. campaigns ESIA to research part and our Impact of our environmental assessment. NORI terabytes $XXX the program. announced we data engaged of campaign, important more during companies XX collected had submitting XXXX, and XXX March, partners on leading impact of We've part the institutions Environmental that resource data the deep offshore social some is

Deep The to once will submission we XXX,XXX categorized, data, for which of first planet, holdings the all to expect on be benthic over and extensive includes within fully alone catalog biological kind the data will its set the occurrences, provide platform. that And a the expansion collated which the contained society. to data area the of available be of NORI-D DPC most significant

the some I'd like Environmental short done during of work to play Impact highlighting a biological video campaign. the Monitoring sampling

[Presentation]

And it's Leading forming these system GSR, XX% their can trials the is abyssal environmental X remained conducted a area XX% to noted during this by with much picture and and others experts that of of leading researchers regard been the including own as have to our NORI-D the team Scripps by plume of as DHI which Peacock of sea MIT found in the a area, settlement sediment to of the plumes, of different own compared preliminary experts conclusion previously led deep-sea as on And hyperbole well in measures test the part of meters the within in like is we that mitigation Of expect gathered plumes the they contractors picture the conducted of and that in fuller by topic of this our impacts course, by ground, at like plain. at collection Tom supports some settlement as contracted research year true quite it's Professor the at And disturbed look floor. a last field infield what data system conjecture. offshore to the NORI dynamics, study, particularly fellow of MIT. findings speculation.

And of this in this a video. glimpse short work here's

[Presentation]

via assessed, a the the routes cycle water routes an impacts categories done encourage read the impact life nickel Indonesian of released to compared you compared a routes. of comparative probably compared blue warming and for a consumption every human The from are extensive waste the nickel nickel. rainforest forms get for nodules, your nickel impact we visual RKEF from land-based laterites results and and impacts on provides global tiny including NORI-D And night just NORI-D and see measured. for cobalt as all for a assessment NORI-D the and I'd hard outperforms when project in from again, NORI-D processed category potential, by produces recently, getting conventional Benchmark to NORI-D slide the on supply nickel, represented comparison nickel of even key by in the terrestrial to all project nickel, HPAL impacts to released last table, by of This line. And the Post lowest copper. bottom other environmental of all picture sources generation. versus piece Washington to better So screen,

those carbon be will sequestration we part the services surface mining and the are no carbon released carbon sources Indonesia, loss into the or atmosphere. disturbed results, the for are carbon is And which atmosphere to seafloor is provide. while considered. of even of up land-based greater in they sinks forests churned ocean immediately assessment, close carbon there sequestered Woodland get next is DRC mechanism quantifies rainforests associated sinks to in removed known Soon, and between and the impacts nodules additional the are when carbon the with from anywhere or Benchmarks the conventional when To releasing gap preview

practical via them and administrative all mining. with our And and in of will fees what this partner substantial received sufficient are is means metals local was to former receive CCZ UNCLOS labor, confidence And regulatory to do sector. states the income yet mechanism possible taxes, become exactly quoting wouldn't the fact via a the of system grants, human country's that not seabed per nodules. from to Tonga. in sponsorship around note, could forced exist exploitation to realistic with developing displacement, sourcing original in commercial Odunton such as XXXX. The from And remarkable their And to the been And which in sea provide means created human is and and of the in Nauru a that they and further, nodules participating resource opportunities it's to other of freshwater developing that on collecting resource in He key speech collection Secretary-General, these most mining away scholarships [indiscernible] production, terrestrial the this ensure faces this and training. the the that toxic get states, will to of that and social the Nations exposure when from goes any benefit this get a challenges from we case entity in far through They United ton offshore parallel nations corporate already fees. a usage however, that also private the happened overlooked sponsoring and part system communities. or incredible we and child without access of a access have at of once of with we GDP. of purpose significant USA One

financials. I'd valuation our CFO, Shesky, turn over And Craig to like discuss and now to it to

Gerard. Thanks,

NORI-D present initial was an arrived Consultants with XXXX, XXXX. REG initial for a In we'll billion area. of And AMC for this the of at of S-K at beginning assessment which the net economics project assessment, analysis, a $X.X March So value familiar NORI-D point-in-time XXXX-compliant the start the slide. issued SEC

as modeling of on that initial Now But the for a the the model found again Page our Excel is document assessment assessment separate of to the section tables can purposes, from NORI-D document. NORI and beginning XXX added initial available Investors it this in we've financial be investors.metals.co. make easier also at website,

estimated the same $XX of running is our billion would updated of simply current resource. prices. for metal course, value of XX% net model present total So be approximately NORI-D on The just

a talk bit eventually these let's should economics valuation. into how about So can little and translate project underlying

remains NORI-D also the are the who of update but may to that price you and pinned a the mining we version Stifel, but a fundamental well alone, to value peers. as also slide, instead. with of put land at including until compared names of developers TMC the compared significant And we again, the new. to land-based help these together in you page. call, of might NORI-D XXx. is look from amount place, In uncertainty slide, trading story course, we On the and corporate same. developers on at using is land-based second-quarter discount that nickel it's nickel discount uncertainty found last of code this On of copper looks on ISA familiar to A many our regulatory this of for at final previous year, there's XXx on actually small on XXXX for some be roughly discount the traded this NPV

the nickel developers. to critical for opportunity the to land-based the metal are with what the average you the largest is an So pay same $X.XX the have on this amount you in if compared through narratives, just roughly resource. resource TMC, you invest might come the dollar and world from And noise all of resources on in

of granting exploitation progress beginning over the ISA of and an over our lays re shortly the course, NORI-D NORI-D then, next area, situation, NORI an contract including, ISA, that page course, of lead commercial and of which application discussed public at major production critical milestones Gerard the length, submitting On the exploitation the thereafter. valuation continued can in from this we change out to some the think ratings undervalued

the or compared approximately of On XX, $X.XX to net XX, quarter ended for reported income of [indiscernible] a to TMC share our net financial for XXXX, March million the XXXX. $XX.X March loss per results, ended quarter

X% specific results for evaluation XXXX, on quarter of XX, lower compensation market March approximately first million best-in for amortized conditions quarter negative were pilot Free Exploration million during the collector of capitalization, as General the expenses on the a to options in royalty XXXX, XX, on XXXX, of March royalties. $X.X to XXXX fully test asset ended was was quarter with low $XX.X compared ended flow in expenses of administrative cash million of gain mine that first $XX $XX.X sale reflecting completed share-based working offset and reflects XXXX ended the and loss ORE November to quarter spending operating lower negative equity-settled quarter some XXXX XXXX were as compared the compared the system adjustments, million $X.X March $X.X carb quarter million. of the million ended in to The timing the include XXXX. $XX.X expenses the quarter with $X.X partially $X.X of $XX.X pay XXXX. The and due in the spending of first down million of million XX, for for quarter an were XXXX. March million, capital XX, to million of the first lower test

at As with of meet believe that XX our availability XXXX, requirements working debt. capital and held from of And the million recently borrowing next be $XX.X cash held credit for least affiliate no an on XX, and of facility expenditure our months under March to hand we sufficient Allseas signed today. will and our cash TMC capital

before take some to remarks back Q&A we now the I'll over audience. Gerard it for closing turn from So

announced it major before, of X,XXX tons also this fourth Thanks, financing and I'll the significantly surface, flexibility the additional I by continue a achievements, first Craig. place. collection. with strategic quarter Allseas. And of provided into nodules including the of host we parties. are the and lifting announced NORI of the Bechtel by discussions technology pieces PAMCO year, unsecured it offshore on collection the quarter over strategic I've $XX facility with partner, our say nodule derisking be the again, initiatives credit to financing encouraged ongoing all-season the million to of In In announced said front, XXXX, and a falling

Now we're mining on of ISA. of great finalization signs puzzle, the the last by the the piece seeing the jigsaw code

collected team world-class continues, will best know social and the the I deliver providing work first nodules confidence impacts our of what planet. energy project including Thank processed going assessment portfolio, into application, in transition be to to and to important and that needed possible to world you metals continue your of the be the As of tirelessly that key a is responsibly work our can interest attention. the environmental for our to

With that, the like turn some over for it questions. operator back to we'd to

Tower first with comes Our from Instructions] Silversteyn question [Operator Dmitry Water Research.

the Congratulations on a great still coming keeping but expenses with good some talked your there, going company here. up you break-even controlling items quarter there and and about. accomplishing one-time I were see understand to guys all these things you

questions. the into get me Let

sorry, the carbon up ended you the selling hear all, going Did back right, royalty, -- down but maybe you X% of steel to I'm low XX% LCR? low to carbon bookkeeping, First I that XX%. it's

No.

announcement transactions been what there effectively, in additional deal was So Dmitry subsequent have happened to to February. the

resources So issued, relative gas in which was acquisition valuable there very Latin natural the in of were America. additional shares

NORI to royalty by Conchita NG asset gross SINU-X we additional actually acquired, Maria X% other Energy. in And royalty, gas owned the doubled the Maria contribution, our the was natural which that royalty, Conchita then an the noted field than there So subsequent size overriding due transaction.

to the increase those So XX% just reduced X with stake of natural TMC's yet transactions, that the value of from elements you portfolio, was XX%. gas significantly

entity. valuation in a think material we prospects increase it represents that of So the

Okay.

of So you a have higher anyway. royalty company, a percentage but the lower revenue run rate

That's correct.

Okay.

want if can would -- they matte determining where you're next the you alloy update and for if ] long them figure us out do the on your polymeric how plus samples they can on. would Secondly, what down they even step manganese the they working let's processing Can PAMCO or and further? your then doing [ that how with to of take And feasibility to to the or it that nodules? if switch be take project are to they're in

it's Look, question. worth noting your ore been PAMCO nickel since for processing you had thank Dmitry, Yes. XXXX. that

flow partner. developed they to And piloting, are process which what Hatch so furnace. a laterites their with involves kiln materials, we've And very been to credible we electric what use arc of course, is identical currently they sheet, a rotary and nickel

we they this. X, I lot we've June a with QX. that's are team, suggest worked about over XX, which providers, X so in technical and expect working There tonne X between our course, some their last we've there's [indiscernible] of sample. exchange active years. And with team, after And early very the between a And probably -- know that our between been soon

So not can decide have bedded binding and that then we far we away, terms commercial agreement. a put the down will into how that consider we

course, spent to it's that up as got not So CapEx. and you of expensive with situation. to amounts we've willing solutions far, will in and It's that capital of build come billions of where go project moment, unique But course, on to a the mining normally, a and started encouraged to PAMCO who very of for it's that push have continue along. by been and I processing. other has of measured normally have spend typical lot then and not on capital And your information we've come enormous here, well. course, great what normally we us what processing And land is wait hard having dollars. without the get project no a the say with partner a really to you will a fabulous build is And this. are financed mining we've to another a and solution That's the at And in There solution processing here. And only imagine of get see. as it's we with happens requires we're invest binding. that It's up to shared possible. permit can solution

The this the And and of So just are getting resource not -- mass piece great nodules, identified arrangement is this you we've relatively our And really we the started, really it of making say the it's of where often course, a standard it equipment because there got then course, internally, and but There's project amazing easy, industry on we've this straightforward. nature of resource of delivers. It and an alloy delivers benefits operators. I'm of process it's into is that that challenges where But new ownership be keep project. processing we the our we'll end. fact this of tag pay of to material turning the can a tolling sound course, unique that will located. saying something I'm simple. surely. a got we've team. engineers And process material that

need on very copper which We'll next higher can sizable low-risk and it's us will take sell alloy, we're market And the be we what no alloy payables. step, contained new cobalt. well. the and of of the payables. for So attractive. payable of If a that or nickel there's get to monitoring for year to is to course, of there at the we we'll to that all confident do constantly And maybe the next get even at approaching of number a process as very that value X step get step. We're X, the is course,

So numbers. set it's of purely a

leads Gerard. actually I helpful. that, appreciate very that into my next me And question. That's

You at going of converter to sulfate, and and provided salts cobalt a step, flow every if you solution very And finally getting the and product. and is which for your waste then finished next tailings. copper, great upgrading you as and the a step is nickel the nice actually a and first alloy manganese the silica then look the nodules mentioned to diagram from slag ammonium step,

the each an about XXX% and of intones but dollar And us the steps. mean sulfur for maybe nickel, realization that being about tables aluminum, talked talking nodules? does of you You you specific at cobalt, terms those and idea, percentage percent? being in x can value amounts, terms what of steps of give copper each get Can for in without you these

They the to material, more in of love it a friendlier we steelmaking they fact, the [indiscernible]. Well, get The the and showed there. should silica, manganese we'll our to an And a Sure. the many that use handed takes company love market, material people we've the it get in process. that much that process samples news of because had other a in premium, value a product. and and value of XXX% report lot makes in independent we [indiscernible] which to

all can XX%, up the for we get As the market. confident go might payables. XX% and matte, We if get we're And the on we alloy, we way payables. get of the XX% might it to between depends the of XX%

Okay.

for that's you of correctly, lot NPV that $XX leads anticipate were from about a me actually to CapEx the billion the would fully developed I step So step. I internally. if billion spending NORI-D getting includes, talk to that my of about it project, When in project That funding you better understand question. if to mathematics going than last $X envisioned you

expense expense portion turn your pretty allow PAMCO you to the the operating thing contract. do that may and of secured capital the offshore with same And You've process Allseas versus much into onshore.

put about billion about $XX that $XX of talking billion own So closer NPV, you are have maybe really we to to assuming your $X when billion in talk something billion, to really CapEx? to you $X

been No, that We've this to year. it's very something we've definitive want done very share that our our had careful out we're on as and economics pre-feasibility we're project third-party We to the assessments great that a Well, skis slide, over some getting as make the not move until past sure we independent of eager to fact new [indiscernible]. not by work putting assessment, number update given for an initial question. yes. as every

that's of model in the page sensitivity the you metal However, do prices, CapEx, OpEx, most just what the as not the shows. know, also simple changes for but what we've just sensitivity make shown on no for this is change those change

to, than however, could billion Now could billion. additional importantly, haven't billion entail, go we it $X lower That operating a of be or of expenses. $X paid said likely quite that what would terms down bit $X in CapEx amounts

have reducing exchange front on to in able OpEx. us be shareholders great to our of enhance equity option CapEx and So for return by this for we

be does margins? achieving EBITDA to would Now XX% XX% you mean that

smaller. be That But very something in free positive minimizes flow No. a very would strong very, doing healthy CapEx. you margin, would cash it still way EBITDA a and that have

would battery want it to we also I great comment or than or, that average, alloy time too sell point let's make don't specific higher we is our the the XX% matte Gerard's of another But be basket on metals products. all of that. whether say, So on initial way at the take to On to assessment. it was

time would building of expected refining we an even at, the stopping $XXX getting roughly cold, CapEx So facility be product call nickel scratch. matte for a scenario, of and from posters nickel assessment, will quite sulfate, be when quite revenue. even tonne that of at an for that it, We're for per that cobalt work, $X sulfates the that confident time In above a billion number bit example. the producing and initial you intermediate

a that for higher So tail about very nice when considerations in comes make trading CapEx capital-light. us to we it production allows metal OpEx prices have flexibility locating to a that these in

need financing issues And That to that the all just is together, tie was get of then you helpful. one to outstanding that there. up it you final biggest the question,

that -- that's other into with financing project-level to have and you on new to provide conclusion. some there complete understand either deal conversations expectations potential to or update for this may you getting Is with partners. -- allow can maybe what the So your I some debt any are how project going you to gotten financing PAMCO bring

you've stated being equity on been underlying updates Look, financing. impressive At NORI-D have interesting that in on It's a time, several very public times value the almost. sure. recent we since same hasn't doubled have our company, it asset-level chart. as a happened remain our in value assets, what's seen focused Yes, to we

hard And to so it's reconcile that.

million existing August the through our the largest news this came company. from recently most that shown announced investor, are in largely recent Allseas, as financings, current we've good shareholders supporting and million shareholders to from the XXXX is, prepared we Now $XX $XX recently, including keep the

So transformational as some of some because Benchmark to involves of and fact know able we and project of are and is size course, the uncertainty the uncertainty the the it. in as of can indicators. other that's the the good. We know good the produced that closer that those to environmental this one quality we permitting, get removing that We those And demonstrate and that of being peer-reviewed out produce reports coming are such papers impacts, metals.

nodules tremendous partner we us first and we strategics And certainty continue I talking talk so our as on which CapEx. that that hidden is to get involved. these already one vessel, get closer of gem. We've a have the it we're points, get to them to about about for this project easier billions production those And We processing things the can easier makes those not no identified to of think processing dollars. Allseas it

of talking not we're capital. So large about tonnes

are can't financings. the I going these say about pleased. the from can we approaches So more that Craig We're talk than get well. fact talks regular more

have $XX We facility million. an at of the market

we're you'll We paths the you very other steps That shelf have, used confident the haven't we we $XXX at them. moving tells note have we're that a other that down. And about million. registered

Our next question comes from Malcolm MacDonald with BAML.

background on the future remaining tape. established Maersk, But position asked they shares, Maersk have selling and why was the been the relationship and provide with regarding their with just for or relationship the how can questions. is the some with on just intention what been an forward this Dmitry lot has a you of initially the their going obviously overhang why

So that provide any helpful. could would or clarity very, there very color you be

instrumental the resource of yes, back lot Maersk, had they've So mentioned, [ to most look, NORI which Maersk XX Kantar extremely been alone and our vessel. possible by as And were definition a campaigns. going definition resource Gerard made of ] on campaigns we've environmental in

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from comes question ] Jones next with Partners. Our Norbury Frank [

far. Awesome update so

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spend very we is space that this we sea. for on because certainly more is used for important the narrative a offtake, mentioned in you tell that lot the And deep to. as time but ISA part, as just can necessarily not watch we what So around well Gerard we if continue metals. the these than to we process, recognize it battery a

there, question Andy Whitmore. Maersk. had on too. the I appreciate one We

or Malcolm nor recent So question Airlift Gerard, MacDonald. overflow on have filing question and the ISA from talk further answered that report impact update a the impact David here from any Research. can of any Larkam I Edison Do from will this that? required? the review And second we believe engineering it, a we the bit perhaps little before required audit of commercial system any operations? we about a So on we

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more for We have one time question.

But appeal companies webcast is the you take collecting I in ] appeal. me in Ryan others worker if polymetallic think the see from we'll safety Is offshore from [ it interest know. unless any enhanced nodules? let operator, showing the an for one are that it queue, Bole

a decarbonize the as about on and just love this demand. And at talented decades, human develop new looking what too, and society and really headlines and companies putting really they it. new opportunity Ryan, that partner, great resources really would we're space. to overall it's some certainly talent set yes, growth are getting and these to obviously gas exponential perspective companies, that very we think within and in But a this, over pressure. the devote as space and But course of also the capital offshore that Gerard, existing ocean on safety take our well, next one. your as repurpose offshore to that opportunity assets factors it I some existing that of increasing oil assets it's offshore is few deep the the of very lot capital unique know also, but I operating an It's going and very a a workers temperatures of be like Allseas, to of to with devote it's metal in there's space a well skills. high a and expertise low But

in of So we're of a display. really that happy And to this on Houston I was that earlier Offshore a know expertise Conference the have big lot month. theme Technology

think it that's Q&A. I for the So

closing I'll for you any comments. it back Gerard, to turn over

conference for mission, thank in thank again call you and for that quarter. progress to commitment amazing our of our call. all to shareholders especially you to Metals Board team, high and quarter again bring you Great. enormously we you Thank us on We of update to forward and contractors to an even August. speaking for members, team second sharing this for our forward in look the to this but August taking suppliers our Well, more corporate Company The and to join look time the level

Thank you all.

Ladies and today's gentlemen, this does presentation. conclude

wonderful disconnect, now have You day. may and a