TMC The Metals Company (TMC 5.56%) is making headlines as it pursues a deep-sea mining operation, but investors should remain cautious. The company recently announced that its application to the National Oceanic and Atmospheric Administration (NOAA) is in “substantial compliance,” a step forward that merely indicates the application is under consideration without guaranteeing approval. This comes alongside a broader U.S.-Japan agreement to collaborate on deep-sea mining, which the company is leveraging to bolster investor sentiment.
Despite a 150% rise in stock price over the past year, TMC’s shares have plummeted over 50% from their 52-week high, highlighting the volatility driven by news flow rather than fundamentals. With no revenue generation yet and significant expenses ahead, TMC remains a speculative investment.
Investors should approach TMC with a long-term perspective, prepared for the challenges of building an underwater mining operation and the potential for ongoing losses in the interim.
Source: fool.com