TMC stock price surges nearly 30% on Korea Zinc deal and US refinery exploration talks
The Metals Company gets a confidence boost from investors as it reports more good news.
The Metals Company, which trades on the Nasdaq in the United States surged 28.8% on Monday following news of an $85 million equity investment by Korea Zinc, a large Asian refinery.
As details emerged of Korea Zinc acquiring a five percent stake in the Canadian deep sea mining hopeful and test refining its polymetallic nodules, TMC shares soared to a new 52-week high of $5.66, up from an opening price of $4.59.
The stock ultimately settled at $5.59 at close, with trading volume exceeding 22 million shares, more than triple its recent daily average of 6 - 8 million.
Why the stock surged
Korea Zinc is now TMC’s largest strategic shareholder, with both companies exploring the development of a US based refinery for deep sea minerals.
The new plant would give TMC a clearer pathway to commercialise any future seabed nodules and help the United States bolster its domestic supply chain for EV batteries.
TMC has faced questions about how it will process and sell minerals harvested from the seafloor.
The company has yet to release its long anticipated pre-feasibility study (PFS), which is expected to lay out those plans.
CEO Gerard Barron told investors in a recent call that the PFS will be published by the end of September.
A high-stakes endorsement
The Korea Zinc investment is being interpreted by analysts and shareholders as a major vote of confidence in TMC’s plan which still awaits regulatory approval from the US National Oceanic and Atmospheric Administration and has come under intense criticism.
The stock has gained more than 600% in the past six months, recovering from a December 2024 low of $0.72.
Monday’s gains place TMC among the most actively traded and top-performing stocks on the Nasdaq.
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Keriann Lee
Keriann Lee