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    What TMC the metals (TMC)'s Korea Zinc-Backed Smelter Tie-Up Means For Shareholders

    Simply Wall St·12/18/2025 18:26:22
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    • Korea Zinc, a 5 percent shareholder in TMC the metals company, recently secured US government backing after agreeing to acquire a 40.1 percent stake in a US$7.40 billion Tennessee mineral smelter and 10 percent of that project’s total outstanding shares.
    • This endorsement of Korea Zinc’s US-facing minerals footprint has drawn attention to TMC’s deep-sea mining ambitions, where regulatory approvals and financing capacity remain central uncertainties.
    • We’ll now examine how Korea Zinc’s government-backed expansion shapes TMC’s investment narrative, including its funding prospects and regulatory risk profile.

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    What Is TMC the metals' Investment Narrative?

    To own TMC, you essentially have to believe deep-sea nodules can move from concept to a permitted, financed, commercial operation before the company’s cash burn and dilution risks bite too hard. The recent Korea Zinc news helps sentiment at the margin, since a 5 percent shareholder receiving US backing for a US$7.40 billion smelter reinforces the idea that large, politically connected capital is circling critical minerals. That said, it does not directly change TMC’s most immediate catalysts: progress at the International Seabed Authority, clarity on environmental rules, and concrete project funding beyond the recent US$85.17 million Korea Zinc placement and smaller equity raises. The core risk profile remains uneasy, with mounting losses, negative equity and no revenue, even after a very large share price run.

    However, one major financing and dilution risk remains front and center that investors should understand. Our expertly prepared valuation report on TMC the metals implies its share price may be too high.

    Exploring Other Perspectives

    TMC 1-Year Stock Price Chart
    TMC 1-Year Stock Price Chart

    Thirty-three fair value estimates from the Simply Wall St Community span roughly US$1 to US$10.50 per share, underlining how far apart individual views are. Set against TMC’s rapid share price move and unresolved permitting and funding questions, this spread shows why many investors are weighing blue-sky potential against very real execution and dilution risks.

    Explore 33 other fair value estimates on TMC the metals - why the stock might be worth as much as 55% more than the current price!

    Build Your Own TMC the metals Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.