TMC the metals (NasdaqGS:TMC) Valuation After Korea Zinc’s US-Backed Tennessee Smelter Boosts Investor Optimism

Korea Zinc winning US government backing for its Tennessee smelter investment is breathing new life into sentiment around TMC the metals (NasdaqGS:TMC), as investors eye potential spillover support and strategic alignment.

See our latest analysis for TMC the metals.

The optimism around Korea Zinc's US backed smelter deal is landing on a stock that already has powerful momentum, with a 1 month share price return of 47.48 percent and a 1 year total shareholder return of 966.22 percent, even though the 5 year total shareholder return remains negative. This suggests the market is rapidly re rating TMC as permitting and financing risks appear more manageable.

If this kind of speculative rerating interests you, it could be worth scanning fast growing stocks with high insider ownership to spot other high conviction stories earlier in their journey.

Yet with TMC still loss making, years from targeted production and trading only modestly below analyst price targets, investors now face a tougher question: is this a genuine buying opportunity, or has the market already priced in the future upside?

Price to Book of -80.3x: Is it justified?

TMC trades at a last close of $7.89, but its extreme negative price to book ratio means investors cannot lean on traditional balance sheet based valuation.

Price to book compares a company’s market value with the accounting value of its net assets, and is widely used across capital intensive sectors like metals and mining. When equity turns negative, however, this ratio flips into a distortion rather than a meaningful yardstick.

In TMC’s case, liabilities exceed assets, producing a price to book ratio of -80.3x compared with about 2.1x for the broader US metals and mining industry and 7x for peers. This underlines how unusual its capital structure and stage of development are. With no meaningful revenue, ongoing losses and negative equity, investors are effectively valuing future optionality on deep sea resources rather than today’s balance sheet.

Instead of anchoring on this broken multiple, valuation work for a company like TMC needs to focus on forward looking cash flow scenarios, permitting milestones and funding pathways that could eventually restore positive equity.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price to Book of -80.3x (ABOUT RIGHT)

However, significant permitting uncertainty and the company’s ongoing losses mean that any regulatory setback or funding shortfall could swiftly puncture the recent optimism.

Find out about the key risks to this TMC the metals narrative.

Build Your Own TMC the metals Narrative

If you would rather dig into the numbers yourself and challenge this view, you can quickly build a personalized TMC thesis in just a few minutes: Do it your way.

A great starting point for your TMC the metals research is our analysis highlighting 1 key reward and 5 important warning signs that could impact your investment decision.

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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.

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