Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

<p>The proposed equity issue and additional resources will largely complete the funding requirement for The Metals Company’s (TMC’s) further environmental study and completion of its mining application, which it intends to file in July 2024. While the regulatory delays in the International Seabed Authority’s (ISA’s) implementation of the mining exploitation code were disappointing, momentum behind the legislative process remains positive and the stepping stones towards TMC’s production of battery metals from the deep sea are steadily falling into place.</p>

The proposed equity issue and additional resources will largely complete the funding requirement for The Metals Company’s (TMC’s) further environmental study and completion of its mining application, which it intends to file in July 2024. While the regulatory delays in the International Seabed Authority’s (ISA’s) implementation of the mining exploitation code were disappointing, momentum behind the legislative process remains positive and the stepping stones towards TMC’s production of battery metals from the deep sea are steadily falling into place.

The Metals Company - Two steps forward, one step back

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

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<li>The end is in sight. Although July 2023 meetings of the ISA ended without finalizing the international sea mining code, the agency made significant progress on the regulations with members re-committing themselves to complete the work on mining regulations in a timely fashion.</li>
<li>The ISA rejected an attempt by a group of nations looking for a long-term moratorium or a ban on undersea mining in international waters.</li>
<li>With three meetings scheduled through July 2024, the ISA will continue to work to build consensus and finalize the mining code.</li>
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The end is in sight. Although July 2023 meetings of the ISA ended without finalizing the international sea mining code, the agency made significant progress on the regulations with members re-committing themselves to complete the work on mining regulations in a timely fashion.
The ISA rejected an attempt by a group of nations looking for a long-term moratorium or a ban on undersea mining in international waters.
With three meetings scheduled through July 2024, the ISA will continue to work to build consensus and finalize the mining code.


TMC the Metals Company, Inc. - Extended Timeline Comes with Increased Certainty

Thematic (Sector/Industry)

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<li><span style="font-size: var(--content-font-size);">WTR Sustainable Index: During the week ended July 7, 2023, the WTR Sustainable Index outperformed the broader market, rising 3.3% W/W versus the S&amp;P 500 Index (down 1.2%), the Russell 2000 Index (down 1.3%), and the Nasdaq Composite Index (down 0.9%).</span></li>
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<p>Advanced Transportation Solutions (75.2% of the index) contributed to the index’s outperformance, rising 4.7%, while Energy Technology (6.5% of the index) was up 0.4% and Industrial Climate and Ag Technology was down 0.8%.</p>
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<p>Valuation: Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 25.3x versus 20.5x for the S&amp;P 500.</p>
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WTR Sustainable Index: During the week ended July 7, 2023, the WTR Sustainable Index outperformed the broader market, rising 3.3% W/W versus the S&amp;P 500 Index (down 1.2%), the Russell 2000 Index (down 1.3%), and the Nasdaq Composite Index (down 0.9%).







Advanced Transportation Solutions (75.2% of the index) contributed to the index’s outperformance, rising 4.7%, while Energy Technology (6.5% of the index) was up 0.4% and Industrial Climate and Ag Technology was down 0.8%.


Valuation: Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 25.3x versus 20.5x for the S&amp;P 500.



Weekly Sustainable Investing Surveyor Week Ended July 7, 2023

<div><div><div><div><ul style="list-style-type: disc;"><li><p>Bringing the NDAA to bear. The US Congress, specifically the House of Representatives’ Armed Services Committee, directed the US Department of Defense to explore and assess the domestic ability to process undersea polymetallic nodules in the United States for the purpose of establishing a critical materials supply chain independent of China.</p></li><li><p>Auspicious timing. The timing of the request is notable, as it comes after several nations, including China, Norway, and Japan, began to move forward with deep-sea mineral extraction projects in their sovereign waters, now that the technology for collecting and transporting to the surface the polymetallic nodules found on the seabed is maturing and the July meeting of the ISA is about to get underway.</p></li><li><p>Not a member, but... While the US is not a signatory (member) of the ISA, it is an observer and, as such, has the ability to positively contribute to the conversation and weigh in on matters pertaining to the development and issuance of the final exploitation regulations for deep-sea mining in international waters. </p><div><div><div><div></div></div></div></div></li></ul></div></div></div></div>

Bringing the NDAA to bear. The US Congress, specifically the House of Representatives’ Armed Services Committee, directed the US Department of Defense to explore and assess the domestic ability to process undersea polymetallic nodules in the United States for the purpose of establishing a critical materials supply chain independent of China.Auspicious timing. The timing of the request is notable, as it comes after several nations, including China, Norway, and Japan, began to move forward with deep-sea mineral extraction projects in their sovereign waters, now that the technology for collecting and transporting to the surface the polymetallic nodules found on the seabed is maturing and the July meeting of the ISA is about to get underway.Not a member, but... While the US is not a signatory (member) of the ISA, it is an observer and, as such, has the ability to positively contribute to the conversation and weigh in on matters pertaining to the development and issuance of the final exploitation regulations for deep-sea mining in international waters. 

TMC the Metals Company, Inc. - US Congress Weighs In on Deep-Sea Nodule Collection

<ul><li>Maersk exit completed. The Danish shipping company, which had a significant equity position in TMC’s early days as a public entity, has completed the sale of its stake, removing a major hurdle to TMC’s ability to sustain upward price momentum as positive developments continue to improve the story’s fundamentals.</li><li>Strong selling pressure removed. Maersk’s stake in TMC was considered non-core as its services contract with TMC ended in 2021, and the company began selling its nearly 21 million share position late last year and has recently completed the liquidation process.</li><li>The entirety of the final 4 million share position was purchased by TMC’s largest shareholder, ERAS Capital.</li></ul>

Maersk exit completed. The Danish shipping company, which had a significant equity position in TMC’s early days as a public entity, has completed the sale of its stake, removing a major hurdle to TMC’s ability to sustain upward price momentum as positive developments continue to improve the story’s fundamentals.Strong selling pressure removed. Maersk’s stake in TMC was considered non-core as its services contract with TMC ended in 2021, and the company began selling its nearly 21 million share position late last year and has recently completed the liquidation process.The entirety of the final 4 million share position was purchased by TMC’s largest shareholder, ERAS Capital.

Tmc the Metals Company, Inc.  - As Headwinds Abate, Fundamentals Re-Emerge

Canada

TMC the metals company Inc. operates as an electric vehicles battery metal company. The Company produces metals from polymetallic rocks to store clean energy and power electric vehicles. TMC the metals serves customers worldwide.

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TMC the metals co (TMC US)

The Metals Company - Two steps forward, one step back

The proposed equity issue and additional resources will largely complete the funding requirement for The Metals Company’s (TMC’s) further...

Edison Investment Research

TMC the Metals Company, Inc. - Extended Timeline Comes with Increased Certainty

The ISA rejected an attempt by a group of nations looking for a long-term moratorium or a ban on undersea mining in international waters.

Water Tower Research

Weekly Sustainable Investing Surveyor Week Ended July 7, 2023

Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 25.3x versus 20.5x for the S&P 500.

Water Tower Research

TMC the Metals Company, Inc. - US Congress Weighs In on Deep-Sea Nodule Collection

Following the March 2023 ISA meetings, even ardent opponents of deep-sea mining had to acknowledge that the practice getting underway is a question...

Water Tower Research

Tmc the Metals Company, Inc. - As Headwinds Abate, Fundamentals Re-Emerge

The Danish shipping company, which had a significant equity position in TMC’s early days as a public entity, has completed the sale of its stake

Water Tower Research

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