TMC the metals Co Inc. 10-Q

Item 1. Financial Statements TMC the metals company Inc. Condensed Consolidated Balance Sheets (in thousands of US Dollars, except share amounts) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As at ​ As at ​ ​ June 30, December 31, ASSETS Note 2025 2024 Current ​ ​ ​ ​ ​ Cash ​ ​ ​ $ 115,759 $ 3,480 Receivables and prepayments ​ ​ ​ 1,519 ​ 1,851 ​ ​ ​ ​ 117,278 ​ 5,331 Non-current ​ ​ ​ ​ ​ ​ Exploration assets ​ ​ 42,951 ​ 42,951 Equipment ​ ​ ​ 655 ​ 771 Software development costs ​ ​ ​ ​ 2,039 ​ ​ 1,928 Right-of-use asset ​ 6 ​ ​ 2,860 ​ ​ 3,814 Investment ​ 7 ​ ​ 7,911 ​ ​ 8,203 ​ ​ ​ ​ 56,416 ​ 57,667 ​ ​ ​ ​ ​ ​ ​ ​ ​ TOTAL ASSETS ​ ​ ​ $ 173,694 $ 62,998 ​ ​ ​ ​ ​ ​ ​ ​ ​ LIABILITIES ​ ​ ​ ​ ​ ​ Current ​ ​ ​ ​ ​ ​ Accounts payable and accrued liabilities 9 ​ 47,099 ​ 42,754 Short-term debt ​ 6,15 ​ ​ 2,478 ​ ​ 11,775 ​ ​ ​ ​ 49,577 ​ 54,529 Non-current ​ ​ ​ ​ ​ ​ Deferred tax liability ​ ​ 10,675 ​ 10,675 Royalty liability ​ 7 ​ ​ 14,000 ​ ​ 14,000 Warrants liability 12 ​ 17,582 ​ 912 ​ ​ ​ ​ ​ 42,257 ​ ​ 25,587 ​ ​ ​ ​ ​ ​ ​ ​ ​ TOTAL LIABILITIES ​ ​ ​ $ 91,834 $ 80,116 ​ ​ ​ ​ ​ ​ ​ ​ ​ EQUITY ​ ​ ​ ​ ​ ​ Common shares (unlimited shares, no par value – issued: 397,155,318 (December 31, 2024 – 340,708,460 )) ​ ​ 606,246 ​ 477,217 Additional paid in capital ​ ​ ​ 203,181 ​ 138,303 Accumulated other comprehensive loss ​ ​ ​ ( 1,203 ) ​ ( 1,203 ) Deficit ​ ​ ​ ( 726,364 ) ​ ( 631,435 ) TOTAL EQUITY ​ ​ ​ 81,860 ​ ( 17,118 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ TOTAL LIABILITIES AND EQUITY ​ ​ ​ $ 173,694 $ 62,998 ​ Nature of Operations (Note 1) Contingent Liabilities (Note 16) Subsequent Event (Note 19) The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements. 5 Table of Contents TMC the metals company Inc. Condensed Consolidated Statements of Loss and Comprehensive Loss (in thousands of US Dollars, except share and per share amounts) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Six months ended ​ ​ June 30, ​ June 30, ​ Note 2025 2024 2025 2024 Operating expenses ​ ​ ​ ​ ​ ​ Exploration and evaluation expenses 8 ​ $ 10,496 $ 12,403 $ 20,011 $ 30,526 General and administrative expenses ​ ​ ​ ​ 11,479 ​ 7,892 ​ 19,979 ​ 14,451 Operating loss ​ ​ ​ ​ 21,975 ​ 20,295 ​ 39,990 ​ 44,977 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other items ​ ​ ​ ​ ​ ​ ​ ​ Nauru Warrant cost ​ 12 ​ ​ 33,079 ​ ​ — ​ ​ 33,079 ​ ​ — Equity-accounted investment loss (income) ​ 7 ​ ​ ( 89 ) ​ ​ 61 ​ ​ ( 54 ) ​ ​ 139 Change in fair value of warrant liability ​ 12 ​ ​ 16,229 ​ ​ ( 580 ) ​ ​ 16,670 ​ ​ ( 49 ) Foreign exchange loss (gain) ​ ​ ​ 2,461 ​ ( 84 ) ​ 3,556 ​ ( 350 ) Interest income ​ ​ ​ ​ ( 147 ) ​ ( 16 ) ​ ( 166 ) ​ ( 118 ) Fees and interest on borrowings and credit facilities ​ 6, 15 ​ ​ 833 ​ 492 ​ 1,854 ​ 763 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Loss and comprehensive loss for the period ​ ​ ​ $ 74,341 $ 20,168 $ 94,929 $ 45,362 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Loss per share ​ ​ ​ ​ ​ ​ ​ ​ ​ - Basic and diluted ​ ​ $ 0.20 $ 0.06 $ 0.27 $ 0.14 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average number of common shares outstanding – basic and diluted ​ ​ ​ 366,626,500 ​ 320,891,977 ​ 356,045,231 ​ 316,206,916 ​ The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements. ​ ​ 6 Table of Contents TMC the metals company Inc. Condensed Consolidated Statements of Changes in Equity (in thousands of US Dollars, except share amounts) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Other ​ ​ ​ ​ ​ ​ ​ ​ Common Shares ​ Preferred ​ Special ​ Paid in ​ Comprehensive ​ ​ ​ ​ ​ ​ Three months ended June 30, 2025 Shares ​ Amount Shares Shares Capital Loss Deficit Total April 1, 2025 ​ 356,617,022 ​ $ 495,804 ​ $ — ​ $ — $ 140,656 $ ( 1,203 ) $ ( 652,023 ) $ ( 16,766 ) Issuance of shares and warrants to Korea Zinc, net of expenses (Notes 10, 12) ​ 19,623,376 ​ ​ 71,686 ​ ​ — ​ ​ — ​ ​ 13,432 ​ ​ — ​ ​ — ​ ​ 85,118 Issuance of shares and warrants under 2025 Registered Direct Offering, net of expenses (Notes 10, 12) ​ 9,000,000 ​ ​ 17,640 ​ ​ — ​ ​ — ​ 12,087 ​ — ​ — ​ 29,727 Shares issued from ATM (Note 11) ​ 4,567,770 ​ ​ 9,222 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 9,222 Exercise of Class A warrants (Note 12) ​ 250,000 ​ ​ 724 ​ ​ — ​ ​ — ​ ​ 3,053 ​ ​ — ​ ​ — ​ ​ 3,777 Exercise of Class B warrants (Note 12) ​ 4,833,096 ​ ​ 6,451 ​ ​ — ​ ​ — ​ ​ ( 3,801 ) ​ ​ — ​ ​ — ​ ​ 2,650 Conversion of restricted share units, net of shares withheld for taxes (Note 13) ​ 1,539,397 ​ ​ 3,254 ​ ​ — ​ ​ — ​ ​ ( 3,254 ) ​ ​ — ​ ​ — ​ ​ — Exercise of stock options (Note 13) ​ 712,124 ​ ​ 1,453 ​ ​ — ​ ​ — ​ ​ ( 991 ) ​ ​ — ​ ​ — ​ ​ 462 Share purchase under Employee Share Purchase Plan (Note 13) ​ 12,533 ​ ​ 12 ​ ​ — ​ ​ — ​ ​ ( 2 ) ​ ​ — ​ ​ — ​ ​ 10 Nauru Warrant Cost (Note 12) ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 33,079 ​ ​ — ​ ​ — ​ ​ 33,079 Share-based compensation and expenses settled with equity (Note 13) ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 8,922 ​ ​ — ​ ​ — ​ ​ 8,922 Loss for the period ​ — ​ ​ — ​ ​ — ​ ​ — ​ — ​ — ​ ( 74,341 ) ​ ( 74,341 ) June 30, 2025 ​ 397,155,318 ​ $ 606,246 ​ $ — ​ $ — $ 203,181 $ ( 1,203 ) $ ( 726,364 ) $ 81,860 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional Other ​ ​ ​ ​ ​ ​ Common Shares ​ Preferred ​ Special ​ Paid in ​ Comprehensive ​ ​ ​ ​ ​ ​ Three months ended June 30, 2024 Shares Amount Shares Shares Capital Loss Deficit Total April 1, 2024 ​ 318,291,383 ​ $ 454,431 ​ $ — ​ $ — ​ $ 122,691 ​ $ ( 1,216 ) ​ $ ( 574,096 ) ​ $ 1,810 Conversion of restricted share units, net of shares withheld for taxes 1,777,466 ​ ​ 1,884 ​ ​ — ​ — ​ ( 1,884 ) ​ — ​ — ​ — Shares issued from ATM ​ 1,634,588 ​ ​ 2,587 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 2,587 Exercise of stock options ​ 511,052 ​ ​ 1,617 ​ ​ — ​ ​ — ​ ​ ( 1,398 ) ​ ​ — ​ ​ — ​ ​ 219 Share purchase under Employee Share Purchase Plan ​ 27,394 ​ ​ 54 ​ ​ — ​ ​ — ​ ​ ( 30 ) ​ ​ — ​ ​ — ​ ​ 24 Share-based compensation and expenses settled with equity — ​ ​ — ​ ​ — ​ — ​ 5,921 ​ — ​ — ​ 5,921 Loss for the period — ​ ​ — ​ ​ — ​ — ​ — ​ — ​ ( 20,168 ) ​ ( 20,168 ) June 30, 2024 322,241,883 ​ $ 460,573 ​ $ — $ — $ 125,300 $ ( 1,216 ) $ ( 594,264 ) $ ( 9,607 ) ​ The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements. ​ 7 Table of Contents TMC the metals company Inc. Condensed Consolidated Statements of Changes in Equity (in thousands of US Dollars, except share amounts) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Other ​ ​ ​ ​ ​ ​ ​ ​ Common Shares ​ Preferred ​ Special ​ Paid in ​ Comprehensive ​ ​ ​ ​ ​ ​ Six months ended June 30, 2025 Shares Amount Shares Shares Capital Loss Deficit Total January 1, 2025 ​ 340,708,460 ​ $ 477,217 ​ $ — ​ $ — ​ $ 138,303 ​ $ ( 1,203 ) ​ $ ( 631,435 ) ​ $ ( 17,118 ) Issuance of shares and warrants to Korea Zinc, net of expenses (Notes 10, 12) ​ 19,623,376 ​ ​ 71,686 ​ ​ — ​ ​ — ​ ​ 13,432 ​ ​ — ​ ​ — ​ ​ 85,118 Issuance of shares and warrants under 2025 Registered Direct Offering, net of expenses (Notes 10, 12) ​ 9,000,000 ​ ​ 17,640 ​ ​ — ​ ​ — ​ ​ 12,087 ​ ​ — ​ ​ — ​ ​ 29,727 Issuance of shares and warrants under 2024 Registered Direct Offering, net of expenses (Notes 10, 12) ​ 5,000,000 ​ ​ 2,237 ​ ​ — ​ ​ — ​ ​ 2,763 ​ ​ — ​ ​ — ​ ​ 5,000 Shares issued from ATM (Note 11) ​ 7,542,996 ​ ​ 14,784 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 14,784 Exercise of Class A warrants (Note 12) ​ 250,000 ​ ​ 724 ​ ​ — ​ ​ — ​ ​ 3,053 ​ ​ — ​ ​ — ​ ​ 3,777 Exercise of Class B warrants (Note 12) ​ 4,833,096 ​ ​ 6,451 ​ ​ — ​ ​ — ​ ​ ( 3,801 ) ​ ​ — ​ ​ — ​ ​ 2,650 Conversion of restricted share units, net of shares withheld for taxes (Note 13) ​ 9,472,733 ​ ​ 14,042 ​ ​ — ​ ​ — ​ ​ ( 14,042 ) ​ ​ — ​ ​ — ​ ​ — Exercise of stock options (Note 13) ​ 712,124 ​ ​ 1,453 ​ ​ — ​ ​ — ​ ​ ( 991 ) ​ ​ — ​ ​ — ​ ​ 462 Share purchase under Employee Share Purchase Plan (Note 13) ​ 12,533 ​ ​ 12 ​ ​ — ​ ​ — ​ ​ ( 2 ) ​ ​ — ​ ​ — ​ ​ 10 Nauru Warrant Cost (Note 12) ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 33,079 ​ ​ — ​ ​ — ​ ​ 33,079 Share-based compensation and expenses settled with equity (Note 13) ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 19,300 ​ ​ — ​ ​ — ​ ​ 19,300 Loss for the period — ​ — ​ — ​ ​ — ​ — ​ — ​ ( 94,929 ) ​ ( 94,929 ) June 30, 2025 397,155,318 $ 606,246 $ — ​ $ — $ 203,181 $ ( 1,203 ) $ ( 726,364 ) $ 81,860 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Other ​ ​ ​ ​ ​ ​ ​ ​ Common Shares ​ Preferred ​ Special ​ Paid in ​ Comprehensive ​ ​ ​ ​ ​ ​ Six months ended June 30, 2024 Shares Amount Shares Shares Capital Loss Deficit Total January 1, 2024 ​ 306,558,710 ​ $ 438,239 ​ $ — ​ $ — ​ $ 122,797 ​ $ ( 1,216 ) ​ $ ( 548,902 ) ​ $ 10,918 Issuance of shares and warrants under registered direct offering, net of expenses ​ 4,500,000 ​ ​ 7,447 ​ ​ — ​ ​ — ​ ​ 1,553 ​ ​ — ​ ​ — ​ ​ 9,000 Conversion of restricted share units, net of shares withheld for taxes 8,890,139 ​ 10,485 ​ ​ — ​ — ​ ( 10,485 ) ​ — ​ — ​ — Shares issued from ATM 1,634,588 ​ 2,587 ​ ​ — ​ — ​ — ​ — ​ — ​ 2,587 Exercise of stock options ​ 631,052 ​ ​ 1,761 ​ ​ — ​ ​ — ​ ​ ( 1,352 ) ​ ​ — ​ ​ — ​ ​ 409 Share purchase under Employee Share Purchase Plan 27,394 ​ 54 ​ ​ — ​ — ​ ( 30 ) ​ — ​ — ​ 24 Share-based compensation and expenses settled with equity — ​ — ​ ​ — ​ — ​ 12,817 ​ — ​ — ​ 12,817 Loss for the period ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 45,362 ) ​ ​ ( 45,362 ) June 30, 2024 322,241,883 ​ $ 460,573 ​ $ — ​ $ — ​ ​ 125,300 ​ $ ( 1,216 ) ​ $ ( 594,264 ) ​ $ ( 9,607 ) ​ The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements. ​ ​ 8 Table of Contents TMC the metals company Inc. Condensed Consolidated Statements of Cash Flows (in thousands of US Dollars) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended ​ Six months ended ​ ​ June 30, June 30, ​ Note 2025 2024 Cash provided by (used in) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating activities ​ ​ ​ ​ ​ ​ ​ Loss for the period ​ ​ $ ( 94,929 ) $ ( 45,362 ) Items not affecting cash: ​ ​ ​ ​ ​ ​ Nauru Warrant Cost ​ 12 ​ ​ 33,079 ​ ​ — Amortization ​ ​ ​ ​ 116 ​ ​ 197 Accrued interest on credit facilities ​ ​ ​ ​ 128 ​ ​ 25 Lease expense ​ 6 ​ ​ 954 ​ ​ 954 Share-based compensation and expenses settled with equity ​ 13 ​ ​ 19,300 ​ ​ 12,817 Equity-accounted investment (income) loss 7 ​ ​ ( 54 ) ​ 139 Change in fair value of warrants liability 12 ​ ​ 16,670 ​ ( 49 ) Unrealized foreign exchange movement ​ ​ ​ ​ 4,687 ​ ​ ( 301 ) Interest paid on amounts drawn from credit facilities and short-term Debt ​ 6,15 ​ ​ ( 693 ) ​ ​ ( 25 ) Changes in working capital: ​ ​ ​ ​ ​ ​ Receivables and prepayments ​ ​ ​ 332 ​ 782 Accounts payable and accrued liabilities ​ ​ ​ 401 ​ 6,857 Net cash used in operating activities ​ ​ ​ ​ ( 20,009 ) ​ ( 23,966 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Investing activities ​ ​ ​ ​ ​ ​ Acquisition of equipment and software ​ ​ ​ ​ ( 120 ) ​ ​ ( 415 ) Proceeds from Low Carbon Royalties distribution ​ 7 ​ ​ 346 ​ ​ — Net cash generated from (used in) investing activities ​ ​ ​ ​ 226 ​ ( 415 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Financing activities ​ ​ ​ ​ ​ ​ Proceeds from Korea Zinc Private Placement ​ 10 ​ ​ 85,165 ​ ​ — Proceeds from Registered Direct Offerings ​ 10 ​ ​ 35,010 ​ ​ 9,000 Expenses paid for Registered Direct Offerings ​ 10 ​ ​ ( 492 ) ​ ​ ( 142 ) Proceeds from shares issued from ATM ​ 11 ​ ​ 14,784 ​ ​ 2,546 Proceeds from exercise of Class A warrants ​ 12 ​ ​ 3,777 ​ ​ — Proceeds from exercise of Class B warrants ​ 12 ​ ​ 2,650 ​ ​ — Repayment of drawn amount on credit facilities ​ 15 ​ ​ ( 1,797 ) ​ ​ — Repayment of Allseas Working Capital Loan ​ 6 ​ ​ ( 7,500 ) ​ ​ — Proceeds from exercise of stock options ​ 13 ​ ​ 462 ​ ​ 409 Proceeds from Drawdown of credit facilities ​ 6, 15 ​ ​ — ​ ​ 3,875 Proceeds from Drawdown of Allseas Debt Agreement ​ 6 ​ ​ — ​ ​ 2,000 Proceeds from Employee Share Purchase Plan ​ 13 ​ ​ 10 ​ ​ 24 Net cash provided by financing activities ​ ​ ​ ​ 132,069 ​ ​ 17,712 Increase (Decrease) in cash ​ ​ $ 112,286 $ ( 6,669 ) Impact of exchange rate changes on cash ​ ​ ​ ( 7 ) ​ 301 Cash - beginning of period ​ ​ ​ 3,480 ​ 6,842 Cash - end of period ​ ​ $ 115,759 $ 474 ​ The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements. ​ ​ ​ 9 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) 1. Nature of Operations TMC the metals company Inc. (“TMC” or the “Company”) was incorporated as a Cayman Islands exempted company limited by shares on December 18, 2019, and continued as a corporation under the laws of the province of British Columbia, Canada on September 9, 2021. The Company’s corporate office, registered address and records office is located at 10th floor, 1111 West Hastings Street, 15 th Floor, Vancouver, British Columbia, Canada, V6E 2J3. The Company’s common shares and warrants to purchase common shares are listed for trading on the Nasdaq Global Select Market (“Nasdaq”) under tickers “TMC” and “TMCWW”, respectively. The Company is a deep-sea minerals exploration company focused on the collection and processing of polymetallic nodules found on the seafloor in international waters of the Clarion Clipperton Zone in the Pacific Ocean (“CCZ”), with NORI Area D located approximately 1,500 miles southwest of San Diego, California. These nodules contain high grades of four metals (nickel, copper, cobalt, manganese) which can be used as (i) feedstock for battery cathode precursors (nickel, cobalt and manganese sulfates, or intermediate nickel-copper-cobalt matte or nickel-copper-cobalt alloy) for nickel-rich lithium-ion batteries, (ii) copper cathode for electric wiring, energy transmission and other applications and (iii) manganese silicate for manganese alloy production required for steel manufacturing. On April 28, 2025, the Company’s wholly owned subsidiary, The Metals Company USA, LLC (“TMC USA”), formally submitted applications for two exploration licenses and one commercial recovery permit to the National Oceanic and Atmospheric Administration (“NOAA”) pursuant to the Deep Seabed Hard Mineral Resources Act of 1980 or DSHMRA. The submitted exploration license applications are to secure exploration rights over two areas in the CCZ, namely TMC USA-A and TMC USA-B, covering a total area of 199,895 square kilometers. The submitted commercial recovery permit application is to secure exploitation rights for a subset of the TMC USA-A area covering over 25,160 square kilometers. The commercial recovery application is the first submission under DSHMRA for commercial recovery of polymetallic nodules. Both Nauru Ocean Resources Inc. (NORI) and Tonga Offshore Mining Limited (TOML) continue to hold their exploration licenses granted by the International Seabed Authority (ISA) and continue pursuing their efforts under these licenses. The realization of the Company’s assets and attainment of profitable operations is dependent upon many factors including, among other things: financing being arranged by the Company to continue the scaling of the nodule collection system for the recovery of polymetallic nodules from the seafloor and the processing technology for the treatment of polymetallic nodules at commercial scale, the establishment of mineable reserves, the commercial and technical feasibility of seafloor polymetallic nodule collection and processing, metal prices, and regulatory approvals and environmental permitting for commercial operations. The outcome of these matters cannot presently be determined because they are contingent on future events and may not be fully under the Company’s control. 2. Basis of Presentation These unaudited condensed consolidated interim financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) for interim financial statements. Accordingly, certain information and footnote disclosures required by U.S. GAAP have been condensed or omitted in these unaudited condensed consolidated interim financial statements pursuant to such rules and regulation. In management’s opinion, these unaudited condensed consolidated interim financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s statement of financial position, operating results for the periods presented, comprehensive loss, shareholder’s equity and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be expected for the full year ending December 31, 2025 or for any other period. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited annual consolidated financial statements for the year ended December 31, 2024. The Company has applied the same accounting policies as in the prior year. 10 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) 3. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and the notes thereto. Significant estimates and assumptions reflected in these condensed consolidated interim financial statements include, but are not limited to, the evaluation of going concern, the valuation of share-based payments, including valuation of stock options (Note 13), valuation of warrants (Note 12), the valuation of the Royalty liability (Note 7) and the valuation of leases (Note 6). Actual results could differ materially from those estimates. 4. Fair Value of Financial Instruments Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. The Company measures fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. In accordance with US GAAP, the Company utilizes a three-tier hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: ● Level 1  - Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access. ● Level 2  - Valuations based on quoted prices for similar assets or liabilities, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. ● Level 3  - Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. There were no transfers between fair value measurement levels during the three and six months ended June 30, 2025, and 2024. As at June 30, 2025, and December 31, 2024, the carrying values of cash, receivables, short-term debt, accounts payable and accrued liabilities approximate their fair values due to the short-term nature of these instruments. The financial instruments also include royalty liability, accrued liabilities and warrants which are recorded at fair value as disclosed in Note 7, Note 9 and Note 12, respectively. 5. Recent Accounting Pronouncements Issued and Adopted There were no recent accounting pronouncements issued and adopted by the Company during the period. 11 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) 6. Strategic Alliance with Allseas and Affiliates Development of Project Zero Offshore Nodule Collection System On March 16, 2022, NORI and Allseas Group S.A. (“Allseas”) entered into a non-binding term sheet for the development and operation of a commercial nodule collection system. For the three and six months ended June 30, 2025, Allseas provided the Company with engineering, project management and vessel use services consisting of lay-up and transit costs totaling $ 0.9 million and $ 3.2 million, respectively as part of the development of the commercial nodule collection system: these costs were recorded as mining, technological and process development within exploration and evaluation expenses (Note 8) (For three months and six months ended June 30, 2024: $ 3.2 million and 6.9 million respectively). Exclusive Vessel Use Agreement with Allseas On August 1, 2023, the Company entered into an Exclusive Vessel Use Agreement with Allseas pursuant to which Allseas will give exclusive use of the vessel (“Hidden Gem”) to the Company in support of the development of the Project Zero Offshore Nodule Collection System until the system is completed or December 31, 2026, whichever is earlier. Allseas can terminate the agreement if the Company ceases normal operations, assigns assets to creditors, initiates bankruptcy proceedings, or faces unresolved bankruptcy-related actions. For the three and six months ended June 30, 2025, the Company has recognized $ 0.5 million and $ 1 million, respectively as lease expense recorded as exploration and evaluation expense (For the three and six months ended June 30, 2024: $ 0.5 million and $ 1 million respectively). ​ ​ ​ ​ ​ ​ Right-of-use Asset Balance as at December 31, 2023 ​ $ 5,721 Lease expense during the year ​ ​ 1,907 Balance as at December 31, 2024 ​ $ 3,814 Lease expense during the period ​ ​ 954 Balance as at June 30, 2025 ​ $ 2,860 ​ 2023 Credit Facility and Loan Agreements with Company Related to Allseas On March 22, 2023, the Company entered into an Unsecured Credit Facility Agreement, which was amended on July 31, 2023 (“2023 Credit Facility”), with Argentum Cedit Virtuti GCV (the “Lender”), the parent of Allseas Investments S.A. (“Allseas Investments”) and an affiliate of Allseas, pursuant to which, the Company may borrow from the Lender up to $ 25 million in the aggregate, from time to time, subject to certain conditions. All amounts drawn under the 2023 Credit Facility will bear interest based on the 6-month Secured Overnight Financing Rate, 180 -day average plus a margin of 4.0 % per annum payable in cash semi-annually (or plus a margin of 5 % if paid-in-kind at maturity, at the Company’s election) on the first business day of each of June and January. The Company will pay an underutilization fee equal to 4.0 % per annum payable semi-annually for any amounts that remain undrawn under the 2023 Credit Facility. The Company has the right to pre-pay the entire amount outstanding under the 2023 Credit Facility at any time before the 2023 Credit Facility’s maturity. The Company has the ability to settle certain charges under the 2023 Credit Facility in cash or in equity at the discretion of the Company. The 2023 Credit Facility also contains customary events of default. On March 24, 2025, the Company entered into a Letter Agreement with the Lender, pursuant to which the undrawn, unsecured credit facility was cancelled with the only obligation being the underutilization fees amounting to $ 2 million as payable. 12 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) On September 9, 2024, the Company entered into a working capital loan agreement (the “Working Capital Loan Agreement”) with Allseas Investments, a company related to Allseas. In accordance with the Working Capital Loan Agreement, Allseas Investments provided a loan to the Company of $ 7.5 million (the “Working Capital Loan”) to be used towards general corporate purposes and for the repayment of all outstanding amounts under the Short-Term Loan between the Company and the Lender. The Working Capital Loan is payable to Allseas Investments on or before the earlier of (i) the occurrence of certain financing events and (ii) April 1, 2025 (the “Repayment Date”). The Working Capital Loan will bear interest based on the 6-month Secured Overnight Financing Rate, 180 -day average plus a margin of 4.0 % per annum and is payable in two installments on January 2, 2025, and the Repayment Date (or plus a margin of 5.0 % if all interest payments are deferred to the Repayment Date, at the Company’s election). On March 24, 2025, the Company entered into a Letter Agreement with Allseas Investments, pursuant to which the Repayment Date under the Working Capital Loan Agreement was extended to September 30, 2025, with principal and interest being repayable on that date. During the three and six months ended June 30, 2025, the Company incurred $ 0.1 million and $ 0.2 million, respectively as interest expense. During the second quarter of 2025, the Company repaid the entire outstanding loan and interest, amounting to $ 7.5 million and $ 0.5 million, respectively, thereby cancelling the Working Capital Loan Agreement. Other Activity On May 12, 2025, the Company entered into a securities purchase agreement with Allseas (Note 10) pursuant to which the Company agreed to sell and issue, 2,333,333 common shares of the Company, and 2,333,333 Class C warrants (“Class C Warrants”) to Allseas for gross proceeds of $ 7 million. In the second quarter of 2025, the entire gross proceeds from Allseas were received and the corresponding shares were issued. As at June 30, 2025, the total amount payable to Allseas and its affiliates was $ 32.4 million, with the entire balance recorded in accrued liabilities in the Condensed Consolidated Balance Sheet (Note 9) (December 31, 2024: $ 33.3 million of which $ 25.8 recorded as accrued liabilities and $ 7.5 million recorded as short-term debt). As at June 30, 2025, Allseas and its affiliates owned 56.1 million TMC common shares (2024: 53.8 million TMC common shares) which constituted 14.1 % (December 31, 2024: 15.8 %) of total common shares outstanding. ​ 7. Investment in Low Carbon Royalties On February 21, 2023 (the “Closing Date”), the Company and its wholly-owned subsidiary, NORI, entered into an investment agreement (the “Royalty Agreement”) with Low Carbon Royalties Inc. (“Low Carbon Royalties”). In connection with the Royalty Agreement, NORI contributed a 2 % gross overriding royalty (the “NORI Royalty”) on the Company’s NORI project area in the CCZ to Low Carbon Royalties. In consideration of the NORI Royalty, TMC received an ownership in Low Carbon Royalties and $ 5 million in cash, as of the Closing Date. In connection with the Royalty Agreement the Company entered into an Investor Rights Agreement with Low Carbon Royalties and a shareholder of Low Carbon Royalties, pursuant to which the Company and this shareholder each have a right, subject to certain percentage maintenance, to nominate a director to Low Carbon Royalties’ board of directors, along with registration and information rights. During the six months ended June 30, 2025, there was no change to the Company’s ownership in Low Carbon Royalties which remained at 32 % (December 31, 2024: 32 %). 13 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) For the three and six months ended June 30, 2025, the Company’s share of the net gain generated by Low Carbon Royalties was $ 89 thousand and $ 54 thousand, respectively (For the three and six months ended June 30, 2024, the Company’s share of Low Carbon Royalties’s net loss was: $ 61 thousand and $ 139 thousand respectively). During the second quarter of 2025, Low Carbon Royalties declared and paid a return of capital of $ 0.025 per share with the Company’s share of return of capital amounting to $ 0.3 million. The Company recorded the return of capital received from Low Carbon Royalties based on the Nature of the Distribution Approach. As the distribution was a return of capital, the Company has disclosed the receipt under Investing Activities in the Condensed Consolidated Statements of Cash Flows. ​ ​ ​ ​ ​ ​ Investment Investment as at December 31, 2023 ​ $ 8,429 Equity-accounted investment loss for the 2024 year ​ ​ ( 226 ) Investment as at December 31, 2024 ​ $ 8,203 Return of Capital ​ ​ ( 346 ) Equity-accounted investment income for the six months ended June 30, 2025 ​ ​ 54 Investment as at June 30, 2025 ​ $ 7,911 ​ The NORI Royalty was recorded as a royalty liability in the consolidated Balance Sheet in accordance with ASC 470, Debt (“ASC 470”). The Company elected to account for the royalty liability at fair value through profit and loss. The fair value was determined using a market approach which entails examining recent royalty transactions prior to the reporting date, focusing on those transactions that involve similar metals as contained in NORI’s polymetallic nodules. The Company compares the specific characteristics of these transactions to estimate the fair value. The fair value of the royalty liability as at June 30, 2025, remained unchanged at $ 14 million. ​ Financial results of Low Carbon Royalties as at and for the three and six months ended June 30, 2025, and 2024 are summarized below: ​ ​ ​ ​ ​ ​ ​ ​ As at June 30, As at June 30, ​ ​ 2025 ​ 2024 Current Assets ​ $ 1,031 1,410 Non-Current Assets ​ 25,112 25,726 Current Liabilities ​ 70 80 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ​ Three months Six months Six months ​ ​ ended June 30, ​ ended June 30, ​ ended June 30, ​ ended June 30, ​ 2025 2024 2025 2024 Royalty Income ​ $ 273 396 526 790 Total Revenue ​ 284 410 554 814 Comprehensive Gain (Loss) for the period ​ $ 277 ( 191 ) 167 ( 433 ) ​ ​ 14 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) 8 . Exploration and Evaluation Expenses The detail of exploration and evaluation expenses is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ Six months ended June 30, ​ 2025 2024 2025 2024 Environmental Studies ​ $ 1,826 $ 1,489 $ 3,096 $ 3,319 Exploration Labor ​ ​ 2,601 ​ ​ 2,423 ​ 5,188 ​ 4,757 Share-Based Compensation (Note 13) ​ ​ 3,325 ​ ​ 3,123 ​ 5,253 ​ 4,094 Mining, Technological and Process Development ​ ​ 1,553 ​ 3,936 ​ 4,503 ​ 15,534 Prefeasibility Studies ​ ​ 462 ​ 295 ​ ​ 503 ​ ​ 585 Sponsorship, Training and Stakeholder Engagement ​ ​ 606 ​ ​ 740 ​ 1,239 ​ 1,613 Other ​ ​ 123 ​ ​ 397 ​ 229 ​ 624 ​ ​ $ 10,496 ​ $ 12,403 $ 20,011 $ 30,526 ​ ​ 9. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities outstanding at June 30, 2025, and December 31, 2024 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30 December 31 ​ ​ 2025 ​ 2024 Accounts Payable ​ $ 4,215 ​ $ 6,198 Accrued Liabilities (1)(2) ​ 42,884 ​ 36,556 ​ ​ $ 47,099 ​ $ 42,754 (1) As at June 30, 2025, accrued liabilities included $ 32.4 million related to Allseas (Note 6) (Dec 31, 2024 - $ 25.8 million). (2) As of June 30, 2025, accrued liabilities included $ 0.4 million in fees payable to a consultant, contingent on warrant exercise and recorded at fair value. 10. Financing Activity 2024 Registered Direct Offering In the last quarter of 2024, the Company entered into a securities purchase agreement with certain investors, pursuant to which the Company agreed to sell and issue, in a registered direct offering (the “2024 Registered Direct Offering”) 19,900,000 common shares and issue Class B Warrants to purchase 9,950,000 Common Shares (“Class B Warrants”). On February 6, 2025, the Company received the final balance of committed funding from the 2024 Registered Direct Offering of $ 5 million and issued 5,000,000 common shares and 2,500,000 Class B Warrants. Out of the total $ 5 million net proceeds received in the three months ended March 31, 2025, the net proceeds attributable to common shares were $ 2.2 million and the net proceeds attributable to Class B Warrants were $ 2.8 million (Note 12). 2025 Registered Direct Offering On May 12, 2025, the Company entered into a securities purchase agreement with certain new and existing investors pursuant to which the Company in consideration of gross proceeds of $ 37 million, agreed to sell and issue, in a registered direct offering (the “ 2025 Registered Direct Offering”), an aggregate of 12,333,333 common shares of the Company, and accompanying Class C warrants to purchase an aggregate of 12,333,333 common shares to such new and existing investors (Note 12). Each Common Share and the accompanying Class C Warrant to purchase a Common Share were sold at a price of $ 3.00 . 15 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) During the second quarter of 2025, the Company received gross proceeds of $ 30 million and issued 9,000,000 million common shares and 10,003,333 Class C Warrants. The Company issued the remaining 3,333,333 common shares and 2,330,000 Class C Warrants in July 2025 after receipt of the remaining gross proceeds amounting to $ 7 million. The total expenses related to the 2025 Registered Offering were $ 0.3 million resulting in net proceeds of $ 36.7 million. Agreement with Korea Zinc On June 16, 2025, the Company entered into a Securities Purchase Agreement (the “Korea Zinc Agreement”) with Korea Zinc Company, Ltd. (“Korea Zinc”), pursuant to which the Company in consideration of gross cash receipt of $ 85.2 million, agreed to issue and sell to Korea Zinc 19,623,376 common shares of the Company and accompanying warrants to purchase an aggregate of 6,868,181 common shares (Note 12). The purchase price per share and accompanying warrant was set at $ 4.34 . During the second quarter of 2025, upon receipt of the entire purchase amount of $ 85.2 million, the Company issued 19,623,376 common shares and accompanying warrants to purchase an aggregate of 6,868,181 common shares. The total expenses related to the Korea Zinc agreement were $ 1.9 million payable in equity (Note 13) resulting in net proceeds of $ 83.3 million. Pursuant to the Korea Zinc Agreement, subject to certain exceptions, Korea Zinc will have a right to participate in any public offering or private placement of any common shares or common share equivalents of the Company primarily for capital raising purposes (each a “Proposed Offering”) up to such amount of securities to maintain its percentage ownership in the Company at the time of such Proposed Offering. Such right to participate in future financings will expire upon the earlier to occur of (i) June 16, 2030, (ii) the date on which Korea Zinc owns less than all of the common shares it purchased and subscribed pursuant to the Korea Zinc Agreement and (iii) immediately after a closing of a Proposed Offering where Korea Zinc does not exercise its participation right in full. Additionally, the Korea Zinc Agreement provides that a representative of Korea Zinc may serve as a non-voting observer to the Company’s board of directors, which representative may have access to certain information and attend and provide input at meetings of the Company’s board of directors, subject to certain limitations. 11. Shares issued as per At-the-Market Equity Distribution Agreement (“ATM”) In December 2022, the Company filed a prospectus supplement with the Securities and Exchange Commission to sell up to $ 30 million of the Company’s common shares from time to time through an ATM. In the three and six months ended June 30, 2025, the Company issued 4,567,770 and 7,542,996 common shares, respectively, at an average share price of $ 2.08 and $ 2.02 , respectively. The net proceeds from the ATM for the three and six months ended June 30, 2025, were $ 9.2 million and $ 14.8 million respectively. During the three and six months ended June 30, 2025, the Company incurred $ 0.3 million and $ 0.5 million, respectively, as commission and fees. (During the three months and six months ended June 30, 2024, the Company issued 1,634,588 common shares at an average share price of $ 1.61 resulting in net proceeds amounting to $ 2.6 million after incurring $ 42 thousand as commission and fees). 12 . Warrants Public Warrants As at June 30, 2025, 15,000,000 Public Warrants were outstanding (December 31, 2024 – 15,000,000 ). Public Warrants may only be exercised for a whole number of shares. The exercise price for the Public Warrants is $ 11.50 per common share. The Public Warrants will expire on September 9, 2026 or earlier upon redemption or liquidation. As at June 30, 2025, the value of outstanding Public Warrants of $ 19.5 million was recorded in additional paid in capital. Private Warrants As at June 30, 2025, 9,500,000 Private Warrants were outstanding (December 31, 2024 – 9,500,000 ). The exercise price for the Private Warrants is $ 11.50 per common share. The Private Warrants will expire on September 9, 2026 or earlier upon redemption or liquidation. 16 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) The Private Warrants were valued using a Black-Scholes model, which resulted in a Level 3 fair value measurement. The primary unobservable input utilized in determining the fair value of the Private Warrants was the expected volatility of the Company’s common shares. The expected volatility was estimated using a binomial model that assigned equal weight to the implied volatility of the Company’s Public Warrants, adjusted for the call feature triggered at prices above $ 18.00 over 20 trading days within any 30 -day period, and the historical volatility of the common share price. As at June 30, 2025, the fair value of outstanding Private Warrants of approximately $ 17.6 million is recorded as warrants liability. The following table presents the changes in the fair value of warrants liability: ​ ​ ​ ​ ​ ​ Private ​ ​ Warrants Warrants liability as at December 31, 2024 ​ $ 912 Increase in fair value of warrants liability ​ 16,670 Warrants liability as at June 30, 2025 ​ $ 17,582 ​ As at June 30, 2025, the fair value of the Private Warrants was estimated using the following assumptions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ 2025 2024 ​ Exercise price ​ $ 11.50 ​ $ 11.50 ​ Share price ​ $ 6.60 ​ $ 1.12 ​ Volatility ​ ​ 101.71 % 108.97 % Term ​ ​ 1.19 years 1.69 years Risk-free rate ​ ​ 3.84 % 4.14 % Dividend yield ​ ​ 0.0 % 0.0 % ​ Class A Warrants The exercise price for the Class A Warrants is $ 2 per common share. The Class A Warrants will expire on December 31, 2027 or earlier upon redemption or liquidation. A continuity schedule summarizing the movement in Class A Warrants is below: ​ ​ ​ ​ ​ Number of Class A ​ ​ Warrants Outstanding – December 31, 2023 3,980,770 Issued 2,250,000 Outstanding – December 31, 2024 6,230,770 Exercised (1) ( 250,000 ) Outstanding – June 30, 2025 5,980,770 (1) Does not include 1,638,270 Class A Warrants which were in the process of being exercised for which the Company received the exercise amount of $ 3.6 million in the second quarter of 2025. The exercise was completed, and the shares were issued on July 7, 2025. As of June 30, 2025, the exercise amount received pending share issuance was recorded in additional paid in capital. As at June 30, 2025, the value of outstanding of 5,980,770 Class A Warrants amounting to $ 5.1 million was recorded in additional paid in capital. 17 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) Class B Warrants As a part of the 2024 Registered Direct Offering (Note 10), the Company issued 7,450,000 Class B Warrants in the last quarter of 2024, to purchase common shares at an exercise price of $ 2.00 per share. The Class B Warrants will expire 5 years from the issuance date or earlier upon redemption or liquidation. A continuity schedule summarizing the movement in Class B Warrants is below: ​ ​ ​ ​ ​ Number of Class B ​ ​ Warrants Outstanding – December 31, 2024 7,450,000 Issued 2,500,000 Exercised (1) ( 6,335,000 ) Outstanding – June 30, 2025 3,615,000 (1) Of the total 6,335,000 Class B Warrants exercised in the second quarter of 2025, 5,035,000 Class B warrants were exercised through a cashless exercise against which 3,533,096 common shares were issued. On June 17, 2025, the Company waived the limitation set forth in the Class B Warrants with respect to the cashless exercise thereof so that the holders of the Class B Warrants may now exercise the Class B Warrants through a cashless exercise, whether or not a registration statement registering the issuance of the common shares underlying the Class B Warrants under the Securities Act of 1933, as amended, is then effective or available. As a result of the waiver, each Class B Warrant may now be immediately exercised by way of a cashless exercise, meaning that the holder may elect to not pay a cash purchase price upon exercise and instead receive upon such exercise the net number of common shares determined according to the formula set forth in the Class B Warrants, subject to the other terms and conditions of the Class B Warrants. As at June 30, 2025, the value of outstanding of 3,615,000 Class B Warrants amounting to $ 3.4 million was recorded in additional paid in capital. ​ Class C Warrants ​ In the second quarter of 2025, as a part of the 2025 Registered Direct Offering (Note 10), the Company issued 10,003,333 Class C Warrants to purchase common shares at an exercise price of $ 4.50 per share with an expiration date of May 12, 2028. The valuation of the Class C Warrants issued was determined using a Monte Carlo simulation. The Class C Warrants were valued as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 22, June 10, June 25, ​ ​ 2025 ​ 2025 ​ 2025 Units Issued ​ 2,333,333 6,666,666 1,003,334 ​ Fair value per warrant ​ $ 2.18 2.15 3.88 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assumptions used: ​ ​ ​ ​ ​ ​ ​ ​ Exercise price ​ $ 4.50 4.50 4.50 ​ Share price ​ $ 4.30 4.24 7.49 ​ Volatility ​ 118.49 % 118.49 % 101.14 % Term ​ 2.92 years 2.92 years 2.88 years Risk-free rate ​ 3.87 % 3.87 % 3.67 % Dividend yield ​ 0.0 % 0.0 % 0.0 % ​ The Class C Warrants contain a call provision under which if the Volume Weighted Average Price “VWAP” for 20 consecutive trading days exceeds $ 7.00 , and the warrant holder does not possess material non-public information provided by the Company, the Company may call for cancellation the unexercised warrants, offering $ 0.0001 per Warrant Share. If conditions for the call are met, the unexercised portion of these warrants will be cancelled ten trading days after the call notice is received. ​ 18 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) Similar to Class A Warrants and Class B Warrants, the Company classified the Class C Warrants as equity (per ASC 815) and recorded the value of the Class C Warrants issued during the second quarter of 2025 amounting to $ 10.2 million as additional paid in capital. On July 1, 2025, the Company received the final balance of committed funding of approximately $ 7 million from the 2025 Registered Direct Offering and issued the remaining 2,330,000 Class C Warrants. There were no exercises or redemptions of the Class C Warrants during the three months ended June 30, 2025, and all 10,003,333 Class C Warrants issued during the second quarter of 2025 were outstanding. Warrants issued to Korea Zinc As part of the Korea Zinc Agreement (Note 10), the Company on June 25, 2025 issued 6,868,181 warrants to Korea Zinc to purchase the common shares of the Company at an exercise price of $ 7.00 per share with an expiration date of June 25, 2028. The fair value of the warrants issued to Korea Zinc was determined using a Monte Carlo simulation on June 25, 2025, resulting with a fair value of $ 3.35 per warrant. The fair value of the warrants issued to Korea Zinc was estimated using the following assumptions: ​ ​ ​ ​ ​ ​ ​ June 25, ​ ​ ​ 2025 ​ Exercise price ​ $ 7.00 ​ Share price ​ $ 7.49 ​ Volatility ​ 100.55 % Term ​ 3 years Risk-free rate ​ 3.67 % Dividend yield ​ 0.0 % ​ The warrants issued to Korea Zinc contain a call provision under which if the VWAP for 20 consecutive trading days exceeds $ 10 , and Korea Zinc does not possess material non-public information provided by the Company, the Company may call for cancellation the unexercised warrants, offering $ 0.0001 per warrant Share. If conditions for the call are met, the unexercised portion of these warrants will be cancelled ten trading days after the call notice is received. Similar to the Class A, Class B and Class C Warrants, the Company classified the warrants issued to Korea Zinc as equity (per ASC 815) and, recorded the value of the warrants issued during the second quarter of 2025 amounting to $ 11.5 million as additional paid in capital. There were no exercises or redemptions of the warrants during the three months ended June 30, 2025, and all 6,868,181 warrants issued to Korea Zinc during the second quarter of 2025 were outstanding. Warrants issued to Republic of Nauru In accordance with the revised sponsorship agreement dated May 29, 2025, between the Nauru Seabed Minerals Authority and the Republic of Nauru (the “Republic”), the Company on May 30, 2025 issued 9,146,268 warrants (“Nauru Warrants”) to the Republic to purchase the common shares of the Company at an exercise price of $ 4.72 per share with an expiration date of May 30, 2030. The Nauru Warrants cannot be exercised through a cashless or net exercise. 19 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) The fair value of the Nauru Warrants was calculated using a Black-Scholes valuation on May 30, 2025, resulting with a fair value of $ 3.6 per warrant. The fair value of the Nauru Warrants was estimated using the following assumptions: ​ ​ ​ ​ ​ ​ ​ May 30, ​ ​ ​ 2025 ​ Exercise price ​ $ 4.72 ​ Share price ​ $ 4.47 ​ Volatility ​ 114.71 % Term ​ 5 years Risk-free rate ​ 3.89 % Dividend yield ​ 0.0 % ​ The Nauru Warrants cannot be exercised until the following conditions have been met: ● A subsidiary of the Company other than NORI obtains a permit, license or other authorization from the US for the conduct of deep seabed mineral activities; and ● The subsidiary other than NORI commences commercial recovery activities of deep seabed minerals pursuant to that permit, license or other authorization. The Nauru Warrants were not determined to be liabilities under ASC 480 as they were not mandatorily redeemable. The Company classified the Nauru Warrants as equity (per ASC 815), as the warrants require physical settlement and were also considered to be indexed to the Company’s share, wherein, upon exercise, a fixed number of common shares would be issued on payment of a fixed exercise price. As at June 30, 2025, the Company recorded the fair value of the Nauru Warrants amounting to $ 33.1 million as additional paid in capital. Since the Company receives no form of consideration from the Republic in return for issuing the Nauru Warrants, the entire fair value of the Nauru warrants amounting to $ 33.1 million is recorded as an expense under Nauru Warrant Cost in the Condensed Consolidated Statements of Loss and Comprehensive Loss. ​ 13 . Share-Based Compensation The Company’s 2021 Incentive Equity Plan (the “Incentive Plan”) provides that the aggregate number of common shares reserved for future issuance under the Incentive Plan. As at June 30, 2025, there were a total of 70,262,856 common shares reserved for issuance under the Incentive Plan. This amount does not include 40,000,000 common shares added to the plan by the Company’s board of directors for which the Company is seeking shareholder approval at a special meeting of the Company’s shareholders to be held on August 28, 2025. Without this increase, as of June 30, 2025, 263,526 common shares remained available for future issuance under the Incentive Plan as of June 30, 2025. A total of 2,243,853 of the common shares reserved for issuance under the Incentive Plan shall only be available for awards made to non-employee directors of the Company. On the first day of each fiscal year from 2022 to 2031, the number of common shares that may be issued pursuant to the Incentive Plan is automatically increased by an amount equal to the lesser of 4 % of the number of outstanding common shares or an amount determined by the board of directors. Share-based awards consisting of Restricted Share Units (“RSU”) and options under the Short-Term Incentives Plan (“STIP”) and Long-Term Incentives Plan (“LTIP”) have been issued under the 2021 Incentive Equity Plan. Prior to the 2021 Incentive Plan, the Company had granted share-based awards under the 2018 Stock Option Plan (“2018 Plan”). 20 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) Stock options A continuity schedule summarizing the movements in the Company’s stock options under the various plans is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Number of Number of ​ ​ Short-Term ​ Long-term ​ Options ​ ​ Options ​ Options Outstanding ​ ​ Outstanding ​ Outstanding under ​ ​ under 2018 Plan under 2018 Plan Incentive Plan Outstanding – December 31, 2023 15,074,240 9,783,922 ​ — Granted ​ — ​ — ​ 3,940,000 Expired ( 57,893 ) ( 139,048 ) ​ — Exercised ( 715,772 ) — ​ — Outstanding – December 31, 2024 14,300,575 9,644,874 ​ 3,940,000 Granted ​ — ​ — ​ 1,250,000 Exercised ( 712,124 ) — ​ — Forfeited — — ​ ( 500,000 ) Outstanding – June 30, 2025 13,588,451 9,644,874 ​ 4,690,000 ​ During the three and six months ended June 30, 2025, the Company recognized $ 0.7 million and $ 1.1 million, respectively of share-based compensation expense for stock options. During the three and six months ended June 30, 2025, share-based compensation expense related to exploration and evaluation activities amounted to $ 0.2 million (three and six months ended June 30, 2024- $ nil ). The amount of the share-based compensation expense recognized related to general and administration matters for the three and six months ended June 30, 2025 was $ 0.5 million and $ 0.9 million, respectively (three and six months ended June 30, 2024 - $ 0.4 million). The Company has not granted any options under the 2018 Plan since September 9, 2021 (date of the Business Combination) and has fully recognized the fair value of the options issued under the 2018 Plan in the prior periods. Restricted Share Units (“RSU”) The Company may, from time to time, grant RSUs to directors, officers, employees, and consultants of the Company and its subsidiaries under the Plan. On each vesting date, RSU holders are issued common shares equivalent to the number of RSUs held provided the holder is providing service to the Company on such vesting date. A continuity schedule summarizing the RSU activity is as follows: ​ ​ ​ ​ ​ Number of RSUs ​ ​ Outstanding Outstanding – December 31, 2023 12,484,880 Granted 33,079,041 Forfeited ( 516,685 ) Exercised ( 10,734,581 ) Outstanding - December 31, 2024 ​ 34,312,655 Granted ​ 13,026,567 Forfeited ​ ( 794,047 ) Exercised ​ ( 9,472,733 ) Outstanding - June 30, 2025 37,072,442 ​ 21 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) The details of RSUs granted by the Company during the period are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ​ Three months Six months ​ Six months ​ ​ ended June 30, ​ ended June 30, ​ ended June 30, ​ ended June 30, Vesting Period 2025 2024 2025 2024 Vesting Immediately (1) ​ 462,042 ​ 206,260 ​ 3,081,627 ​ 4,006,695 Vesting fully within and on first anniversary of the grant date (2) 134,226 476,189 194,226 493,430 Vesting in thirds on each anniversary of the grant date — 68,027 8,818,935 7,212,375 Vesting in fourths on each anniversary of the grant date — 701,880 176,302 701,880 Vesting three years from grant date (3) ​ 66,508 ​ — ​ 66,508 ​ — Vesting based on performance conditions (4) ​ 364,785 ​ — ​ 688,969 ​ — Vesting based on market conditions ​ — ​ 20,000,000 ​ — ​ 20,000,000 Total Units Granted ​ 1,027,561 ​ 21,452,356 ​ 13,026,567 ​ 32,414,380 (1) Of the 462,042 RSUs granted during the three months ended June 30, 2025, 310,530 RSUs were granted to consultants with an aggregate fair value of $ 0.8 million recorded in general and administrative expenses. The 462,042 RSUs granted during the three months ended June 30, 2025, also consist of 91,512 RSUs with an aggregate fair value of $ 398,075 issued to the non-employee directors in lieu of the cash portion of their director fees which commenced from the second quarter of 2024 until the end of March 2025. The remaining 60,000 grants were issued to employees. (2) During the three months ended June 30, 2025, an aggregate of 134,226 RSUs were granted to the Company’s non-employee directors under the Company’s Non-employee Director Compensation Policy, which will vest at the Company’s 2026 annual shareholders meeting. The total fair value of units granted as annual grants to non-employee directors amounted to $ 0.6 million. In the first quarter of 2025, 60,000 RSUs vesting on July 1, 2025, were issued to a consultant, resulting in $ 0.1 million charged as general and administrative expenses. (3) During three and six months ended June 30, 2025, the Company issued a special retention grant to one of the non-employee directors vesting three years from the grant date. The fair value of the grant amounted to $ 0.3 million. (4) During three and six months ended June 30, 2025, the Company issued 338,653 RSUs with an aggregate fair value of $ 1.9 million to consultants as fees for securing the agreement with Korea Zinc (Note 10). The remaining 26,132 RSUs with an aggregate fair value of $ 0.1 million issued to consultants during the second quarter of 2025 were recorded as general and administrative expenses. The grant date fair value of all RSUs granted during the three and six months ended June 30, 2025, is equivalent to the closing share price of the Company’s common shares on the date of grant. During the three and six months ended June 30, 2025, a total of $ 6.2 million and $ 11.6 million, respectively was charged to the statement of loss and comprehensive loss as share-based compensation expense for RSUs (three and six months ended June 30, 2024: $ 5.3 million and $ 8.5 million respectively). For the three and six months ended June 30, 2025, a total of $ 3.2 million and $ 5.1 million, respectively, was recognized as share-based compensation expense related to exploration and evaluation activities (three and six months ended June 30, 2024 - $ 3.1 million and $ 4.4 million, respectively). The amount of share-based compensation expense related to general and administration matters for three and six months ended June 30, 2025 was $ 3 million and $ 6.5 million, respectively (three and six months ended June 30, 2024 - $ 2.2 million and $ 4.1 million, respectively). As at June 30, 2025, the total unrecognized share-based compensation expense for RSUs was $ 16.2 million (December 31, 2024 - $ 20.5 million). As at June 30, 2025, an aggregate of 416,446 vested RSUs were being processed and due to be converted into common shares. 22 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) Employee Stock Purchase Plan On May 31, 2022, TMC’s 2021 Employee Stock Purchase Plan (“ESPP”) was approved at the Company’s 2022 annual shareholders meeting. As at June 30, 2025, there were 14,395,117 total common shares reserved for issuance under the ESPP, of which 14,043,174 remain available for future issuance. This included 3,407,085 shares added to the ESPP in January 2025 pursuant to the ESPP’s automatic annual increase provision. Under the ESPP, the number of shares reserved for issuance is subject to an annual increase provision which provides that on the first day of each of the Company’s fiscal years starting in 2022, common shares equal to the lesser of (i) 1 % percent of the common shares outstanding on the last day of the immediately preceding fiscal year, or (ii) such lesser number of shares as is determined by the board of directors will be added to the ESPP. During the three and six months ended June 30, 2025, a total of $ 4 thousand, (three and six months ended June 30, 2024: $ 7 thousand and $ 15 thousand respectively) was recorded as exploration and evaluation expenses in the statement of loss and comprehensive loss as share-based compensation expense, representing the share price purchase discount offered by the Company. 14 . Loss per Share Basic loss per share is computed by dividing the loss by the weighted-average number of common shares of the Company outstanding during the period. Diluted loss per share is computed by giving effect to all common share equivalents of the Company, including outstanding stock options, RSUs, warrants, Special Shares and options to purchase Special Shares, to the extent these are dilutive. Basic and diluted loss per share was the same for each period presented as the inclusion of all common share equivalents would have been anti-dilutive. Anti-dilutive equivalent common shares were as follows: ​ ​ ​ ​ ​ ​ ​ ​ Six months ended ​ Six months ended ​ ​ June 30, ​ June 30, ​ 2025 2024 Outstanding options to purchase common shares ​ 27,923,325 28,028,062 Outstanding RSUs ​ 37,072,442 35,761,561 Outstanding shares under ESPP ​ 1,627 ​ 2,767 Outstanding warrants ​ 60,113,552 ​ 30,730,770 Outstanding Special Shares and options to purchase Special Shares ​ 136,011,413 ​ 136,239,964 Total anti-dilutive common equivalent shares ​ 261,122,359 230,763,124 ​ ​ 23 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) 15 . Related Party Transactions On March 22, 2024, the Company entered into an Unsecured Credit Facility (the “2024 Credit Facility”) with Gerard Barron, the Company’s Chief Executive Officer and Chairman, and ERAS Capital LLC, the family fund of one of the Company’s directors, (collectively, the “2024 Lenders”), pursuant to which, the Company may borrow from the 2024 Lenders up to $ 20 million in the aggregate ( $ 10 million from each of the 2024 Lenders), from time to time, subject to certain conditions. All amounts drawn under the 2024 Credit Facility will bear interest at the 6-month Secured Overnight Funding Rate (SOFR), 180 -day average plus 4.0 % per annum payable in cash semi - annually (or plus 5 % if paid - in - kind at maturity, at our election) on the first business day of each of June and January. The Company will pay an underutilization fee equal to 4.0 % per annum payable semi-annually for any amounts that remain undrawn under the 2024 Credit Facility. The 2024 Credit Facility also contains customary events of default. On August 13, 2024, the Company entered into the First Amendment to the 2024 Credit Facility with the 2024 Lenders, to increase the borrowing limit of the 2024 Credit Facility to $ 25 million in the aggregate ($ 12.5 million from each of the 2024 Lenders). On November 14, 2024, the Company entered into the Second Amendment to the 2024 Credit Facility with the 2024 Lenders, to increase the borrowing limit to $ 38 million in the aggregate ($ 19 million from each of the 2024 Lenders) and to extend the maturity of the 2024 Credit Facility to December 31, 2025 . As per the Second Amendment, the rate of underutilization fee was retroactively increased from March 22, 2024, to 6.5 % on any undrawn amounts under the 2024 Credit Facility. On March 26, 2025, the Company entered into the Third Amendment to the 2024 Credit Facility with the 2024 Lenders, to, among other things, increase the borrowing limit to $ 44 million in the aggregate ($ 22 million from each of the 2024 Lenders) and extend the maturity of the 2024 Credit Facility to June 30, 2026 . As per the Third Amendment to the 2024 Credit Facility, the 2024 Lenders have an option to terminate the credit facility upon certain financing events. During the three and six months ended June 30, 2025, the Company repaid $ nil and $ 1.8 million respectively of the drawn amount and did not draw from the 2024 Credit Facility any further (During the three and six months ended June 30, 2024, the Company drew $ 3.9 million from the 2024 Credit Facility and made no repayments). During the three and six months ended June 30, 2025, the Company incurred $ 0.1 million as interest expense, while for those same periods, it incurred $ 0.7 million and $ 1.2 million respectively, as underutilization fees (For the second quarter and first half of 2024, the interest amounted to $ 50 thousand and underutilization fees amounted to $ 0.2 million). During the three and six months ended June 30, 2025, the Company repaid interest amounting to $ 0.1 and $ 0.2 million respectively (For three and six months ended June 30, 2024: nil and $ 25 thousand) and underutilization fees amounting to $ 0.9 million (For three and six months ended June 30, 2024: $ 0.1 million). On July 2, 2025, the Company repaid the drawn amount of $ 2.5 million and outstanding interest and underutilization fees amount to $ 0.1 million and $ 1.2 million, respectively. One of the Company’s directors is the Chairman of Robertsbridge Consultants Limited, which provides the Company with consulting services. During the three and six months ended June 30, 2025, Robertsbridge Consultants Limited, provided consulting services amounting to $ 5 thousand, recorded in general and administrative expenses (During the three and six months ended June 30, 2024, Robertsbridge Consultants Limited provided consulting services amounting to $ 5 thousand and $ 36 thousand). As at June 30, 2025, the amount payable to Robertsbridge Consultants Limited was $ nil The 2025 Registered Direct Offering included $ 10 million from the participation of one of the Company’s Directors appointed in the Annual General Meeting held in second quarter of the year. During the three and six months ended June 30, 2025, the Company entered into consulting agreements with two of its directors. The consideration for the consulting services provided by the directors will be in the form of RSUs and stock options subject to the approval of shareholders in the upcoming special meeting of shareholders scheduled on August 28, 2025. Apart from the above-mentioned transactions, the Company had transactions with Allseas which are detailed in Note 6. 24 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) 16 . Contingent Liabilities On October 28, 2021, a shareholder filed a putative class action against the Company, one of the Company’s executives and a former director in federal district court for the Eastern District of New York, captioned Caper v. TMC The Metals Company Inc. F/K/A Sustainable Opportunities Acquisition Corp., Gerard Barron and Scott Leonard. The complaint alleges that all defendants violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, and Messrs. Barron and Leonard violated Section 20(a) of the Exchange Act, by making false and/or misleading statements and/or failing to disclose information about the Company’s operations and prospects during the period from March 4, 2021 and October 5, 2021. On November 15, 2021, a second complaint containing substantially the same allegations was filed, captioned Tran v. TMC the Metals Company, Inc. These cases were consolidated. On March 6, 2022, a lead plaintiff was selected. An amended complaint was filed on May 12, 2022, reflecting substantially similar allegations, with the Plaintiff seeking to recover compensable damages caused by the alleged wrongdoings. The Company denies any allegations of wrongdoing and filed and served the plaintiff a motion to dismiss on July 12, 2022 and intend to defend against this lawsuit. On July 12, 2023, an oral hearing on the motion to dismiss was held. On July 9, 2025, the Court granted our motion to dismiss with prejudice, and the case was dismissed in its entirety. No appeal was filed and the matter is now considered closed. On January 23, 2023, investors in the 2021 private placement from the Business Combination filed a lawsuit against the Company in the Commercial Division of New York Supreme Court, New York County, captioned Atalaya Special Purpose Investment Fund II LP et al. v. Sustainable Opportunities Acquisition Corp. n/k/a TMC The Metals Company Inc., Index No. 650449/2023 (N.Y. Sup. Ct.). The Company filed a motion to dismiss on March 31, 2023, after which the plaintiffs filed an amended complaint on June 5, 2023. The amended complaint alleges that the Company breached the representations and warranties in the plaintiffs’ private placement Subscription Agreements and breached the covenant of good faith and fair dealing. The Plaintiffs are seeking to recover compensable damages caused by the alleged wrongdoings. The Company denies any allegations of wrongdoing and filed a motion to dismiss the amended complaint on July 28, 2023. On December 7, 2023, the Court granted the Company’s motion to dismiss the claim for breach of the covenant of good faith and fair dealing and denied the Company’s motion to dismiss the breach of the Subscription Agreement claim. The Company filed a notice of appeal regarding the Court’s denial of our motion to dismiss the breach of the Subscription Agreement claim. The appeal was heard on November 8, 2024. The NY Appellate Division upheld the lower court’s ruling in December 2024, moving the case into the discovery phase. There is no assurance that the Company will be successful in our defense of this lawsuit or that insurance will be available or adequate to fund any settlement or judgment or the litigation costs of this action. Such losses or range of possible losses cannot be reliably estimated. 25 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) On November 8, 2024, a shareholder filed a putative class action against the Company and certain of its executives in federal district court for the Central District of California, captioned Lin v. TMC The Metals Company Inc., Gerard Barron, and Craig Shesky. The complaint alleges that all defendants violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, and Messrs. Barron and Shesky violated Section 20(a) of the Exchange Act, by making false and/or misleading statements and/or failing to disclose information regarding the classification of the non-financial asset received from our partnership with Low Carbon Royalties Inc. and the derecognition of the capitalized exploration contract related to NORI. The alleged misstatements and omissions pertain to the Company’s initial classification of this non-financial asset as a gain on disposition (being a sale of future revenue) and subsequent reclassification thereof as a royalty liability (and re-capitalization of the exploration contract) and the restatement of our previously issued financial statements as a result thereof for the three months ended March 31, 2023, the six months ended June 30, 2023 and the nine months ended September 30, 2023 in March 2024. The complaint purports to represent a class of shareholders who acquired the Company’s securities between May 12, 2023, and March 25, 2024, and seeks to recover compensable damages caused by the alleged wrongdoings. On February 6, 2025, the Court appointed a lead plaintiff. An amended complaint was filed on March 6, 2025. Pursuant to court-approved scheduling, the Company filed a motion to dismiss on April 10, 2025. The lead plaintiff filed an opposition on May 15, 2025, and the Company filed a reply on June 5, 2025. On June 18, 2025, the Court granted the Company’s motion to dismiss in full but granted plaintiffs leave to amend. The plaintiffs filed a Second Amended Complaint on July 2, 2025. The Company’s motion to dismiss the Second Amended Complaint was filed on August 6, 2025, the plaintiff’s opposition is expected to be filed by September 9, 2025, and a reply is expected to be filed by September 23, 2025. The Company intends to continue defending against the lawsuit. There can be no assurance, however, that the Company will be successful in its defense, or that insurance will be available or adequate to fund any settlement or judgment or the litigation costs of this action. Due to the early stage of this litigation, such losses or range of possible losses cannot be reliably estimated. Revised Sponsorship Agreement with Republic of Nauru On May 29, 2025, NORI entered into a Revised Sponsorship Agreement with the Republic of Nauru which provides NORI with exclusive right to explore for polymetallic nodules in the ISA contract area, pursuant to its ISA Exploration Contract. The Republic of Nauru will continue to sponsor NORI’s seabed mineral activities in the area as per the terms of this Sponsorship Agreement. In exchange for the Republic of Nauru’s sponsorship, NORI will make cash payments (“Continuity Benefits”) to the Republic of Nauru for its continued sponsorship. The Continuity Benefits would only be payable if (i) a subsidiary of the Company other than NORI obtains a permit, license or other authorization from the US for the conduct of deep seabed mineral activities; (ii) and that Subsidiary commences commercial recovery activities of deep seabed minerals pursuant to that permit, license or other authorization (“Continuity Conditions”) and the range of the Continuity Benefits to the Republic of Nauru will be between $ 265 million and $ 515 million (undiscounted). In connection with the Revised Sponsorship Agreement, the Company entered into a Deed of Guarantee and Indemnity in favor of the Republic of Nauru under which the Company guarantees certain obligations of NORI and provides customary indemnities. As of June 30, 2025, the Continuity conditions are not probable but reasonably possible, and therefore the Company has not recorded any amount as Continuity Benefits. ​ 26 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) 17. Fair Value Accounting The following tables set forth the Company’s assets and liabilities measured at fair value (Note 4): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value at June 30, 2025 ​ Total Level 1 Level 2 Level 3 Assets: ​ ​ ​ ​ Cash ​ $ 115,759 ​ $ 115,759 ​ $ — ​ $ — Receivables and prepayments ​ 1,519 ​ — ​ 1,519 ​ — Exploration contracts ​ 42,951 ​ — ​ — ​ 42,951 Right of use asset ​ 2,860 ​ — ​ — ​ 2,860 Equipment ​ 655 ​ — ​ — ​ 655 Software ​ 2,039 ​ — ​ — ​ 2,039 Investment ​ 7,911 ​ — ​ — ​ 7,911 ​ ​ $ 173,694 ​ $ 115,759 ​ $ 1,519 ​ $ 56,416 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ Accounts payable and accrued liabilities ​ $ 47,099 ​ $ — ​ $ 47,099 ​ $ — Short-term debt ​ 2,478 ​ — ​ 2,478 ​ — Deferred tax liability ​ 10,675 ​ — ​ 10,675 ​ — Royalty liability ​ 14,000 ​ — ​ — ​ 14,000 Warrants liability ​ 17,582 ​ — ​ — ​ 17,582 ​ ​ $ 91,834 ​ $ — ​ $ 60,252 ​ $ 31,582 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value at December 31, 2024 ​ Total Level 1 Level 2 Level 3 Assets: ​ ​ ​ ​ Cash ​ $ 3,480 ​ $ 3,480 ​ $ — ​ $ — Receivables and prepayments ​ 1,851 ​ — ​ 1,851 ​ — Exploration contracts ​ 42,951 ​ — ​ — ​ 42,951 Right of use asset ​ 3,814 ​ — ​ — ​ 3,814 Equipment ​ 771 ​ — ​ — ​ 771 Software ​ 1,928 ​ — ​ — ​ 1,928 Investment ​ 8,203 ​ — ​ — ​ 8,203 ​ ​ $ 62,998 ​ $ 3,480 ​ $ 1,851 ​ $ 57,667 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ Accounts payable and accrued liabilities ​ $ 42,754 ​ $ — ​ $ 42,754 ​ $ — Short-term debt ​ 11,775 ​ — ​ 11,775 ​ — Deferred tax liability ​ 10,675 ​ — ​ 10,675 ​ — Royalty liability ​ 14,000 ​ — ​ — ​ 14,000 Warrants liability ​ 912 ​ — ​ — ​ 912 ​ ​ $ 80,116 ​ $ — ​ $ 65,204 ​ $ 14,912 ​ ​ 27 Table of Contents TMC the metals company Inc. Notes to Interim Condensed Consolidated Financial Statements (in thousands of US Dollars, except share, per share amounts and unless otherwise stated) (Unaudited) 18. Segmented Information The Company’s business consists of only one operating segment, namely exploration of seafloor polymetallic nodules, which includes the development of a metallurgical process to treat such seafloor polymetallic nodules. Details on the geographical segmentation of the Company’s long-lived assets based on where each legal entity is domiciled are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, Equipment ​ 2025 ​ 2024 Nauru ​ $ 655 ​ $ 771 Tonga ​ — ​ — Total ​ $ 655 ​ $ 771 ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, Software ​ 2025 ​ 2024 Singapore ​ 2,039 ​ 1,928 Total ​ $ 2,039 ​ $ 1,928 ​ ​ 19. Subsequent Events On August 4, 2025, the Company announced the publication of two technical economic studies prepared in accordance with Subpart 1300 of Regulation S-K: a Pre-Feasibility Study (“PFS”) and an Initial Assessment (“IA”) relating to the Company’s polymetallic nodule projects in the Clarion Clipperton Zone of the Pacific Ocean. The PFS, which covers the NORI Area D, represents the first declaration of Mineral Reserves for a polymetallic nodule project. Concurrently, the Company published an IA evaluating the broader resource potential across the Company’s remaining NORI and TOML contract areas. Management will consider this filing in its next evaluation of the Royalty Liability at September 30, 2025, which may cause an increase in the liability and expense amounts in the Company’s financial statements. On August 4, 2025, TOML entered into a Revised Sponsorship Agreement with the Kingdom of Tonga which provides TOML with exclusive right to explore for polymetallic nodules in the ISA contract area, pursuant to its ISA Exploration Contract. The Kingdom of Tonga will continue to sponsor TOML’s seabed mineral activities in the area as per the terms of this Sponsorship Agreement. In exchange for the Kingdom of Tonga’s sponsorship, TOML will make cash payments (“Continuity Benefits”) to the Kingdom of Tonga for its continued sponsorship. The Continuity Benefits would only be payable if (i) a subsidiary of the Company other than TOML obtains a permit, license or other authorization from the US for the conduct of deep seabed mineral activities; (ii) and that Subsidiary commences commercial recovery activities of deep seabed minerals pursuant to that permit, license or other authorization (“Continuity Conditions”). In connection with the Revised Sponsorship Agreement, the Company entered into a Deed of Guarantee and Indemnity in favor of the Kingdom of Tonga under which the Company guarantees certain obligations of TOML and provides customary indemnities. ​ ​ 28 ​ Table of Contents