We feel now is a pretty good time to analyse TMC the metals company Inc.'s (NASDAQ:TMC) business as it appears the company may be on the cusp of a considerable accomplishment. TMC the metals company Inc., a deep-sea minerals exploration company, focuses on the collection, processing, and refining of polymetallic nodules found on the seafloor in the Clarion Clipperton Zone (CCZ) in the south-west of San Diego, California. The US$513m market-cap company announced a latest loss of US$74m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which TMC the metals will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for TMC the metals

Consensus from 3 of the American Metals and Mining analysts is that TMC the metals is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$16m in 2026. So, the company is predicted to breakeven approximately 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 68% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of TMC the metals' upcoming projects, however, take into account that typically metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. TMC the metals currently has no debt on its balance sheet, which is quite unusual for a cash-burning metals and mining company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

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There are key fundamentals of TMC the metals which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at TMC the metals, take a look at TMC the metals' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research: