The Metals Company (TMC) will benefit from President Trump's "game-changing" executive order to allow US companies to bypass the International Seabed Authority and fast-track the permitting of deep sea mining, Wedbush said.
The executive order, which aims to boost the US critical mineral supply chain, is a significant tailwind for the deep sea mining industry, with TMC "being the main beneficiary," Wedbush analysts said.
The company has started the application process through its US subsidiary with the National Oceanic and Atmospheric Administration within the US Department of Commerce under the Deep Seabed Hard Mineral Resources Act, the analysts said. TMC is confident that the US regulatory process offers a path to begin production in the Clarion Clipperton Zone of the Pacific Ocean, they added.
In a statement issued Friday, the company welcomed the executive order. "With a stable, transparent, and enforceable regulatory pathway available under existing U.S. law, we look forward to delivering the world's first commercial nodule project-responsibly and economically," TMC Chairman and CEO Gerard Barron said.
Wedbush maintained its neutral rating on the stock and increased the price target to $6 from $4.
Price: 3.28, Change: -0.41, Percent Change: -11.00
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