Since they closed at $5.10 on May 20, shares of The Metals Company (TMC +7.88%) have closed each subsequent trading session higher than the previous one. That streak seems all but guaranteed to continue today. With the deep-sea mining company reporting an encouraging update on its progress toward achieving regulatory approval, investors have been bidding the stock higher.
Shares of The Metals Company ended today 7.9% higher from yesterday’s close, giving back some of the 15.4% gain from earlier today.
Image source: Getty Images.
This deep-sea mining company is sailing in the right direction
The Metals Company announced today that the National Oceanic and Atmospheric Administration (NOAA) has formally certified the USA Part B exploration license that its subsidiary, The Metals Company USA LLC, had submitted.
Today’s Change
(7.88%) $0.45
Current Price
$6.16
Key Data Points
Market Cap
$2.5B
Day’s Range
$5.62 – $6.58
52wk Range
$3.93 – $11.35
Volume
12M
Avg Vol
5.6M
According to the company, the license covers approximately 122,000 square kilometers of seafloor and includes about 1.02 billion metric tons of polymetallic nodules.
Additionally, The Metals Company USA is proceeding with an application for an exploration license and a commercial recovery permit for the USA A area, which it submitted to NOAA in January and which the regulatory agency found to be fully compliant.
Should investors set sail with The Metals Company stock on today’s news?
Undoubtedly, today’s news is a positive development for The Metlas Company, as it brings it closer to obtaining the necessary permits to commence commercial operations. While there’s some de-risking with the company after today, potential investors must still recognize that there’s no certainty that if the company does successfully navigate through the bureaucratic red tape, which has delayed its progress previously, there’s no certainty that the company will be profitable in producing nickel and other metals from its deep-sea mining operations.
Since an investment in this mining stock remains speculative at this point, buying The Metals Company stock should be an option only for those with considerable risk tolerance.
