As President Donald Trump enters the second term, the deep sea mining sector is seeing the light at the end of the tunnel, and regulatory changes are pointing favourably to companies like The Metals Company (TMC, Financial). Much as tapping into mineral-rich ocean floors is an overlooked industry, it could become a major source of critical materials for electric vehicles and renewable energy. This renewed attention will be good for TMC, which mines polymetallic nodules with nickel, cobalt, and copper.
Expectations have then increased since Trump's administration has signalled greater support for domestic mineral exploration and made a string of appointments, including pro-mining figures such as Elise Stefanik and Marco Rubio. Since a Wall Street Journal report and after spiking 22 percent, TMC's stock price shows the market is more optimistic about the possibility of Trump leading the industry for the greater good.
TMC hopes to put my proof of concept in the Pacific, where there are valuable resources in the Clarion Clipperton Zone, in March 2024. Yet the company is plagued by problems such as regulatory approval — an essential requirement from the International Seabed Authority (ISA) — and environmental concerns from environmentalists like Greenpeace.
However, analysts are bullish on TMC because Alliance Global Partners begins coverage with a 'Buy' and a price target of $3.98.
