I think TMC The Metals Company is the most undervalued battery play you can find.
TMC holds exploration and commercial rights to three contract areas which host an estimated 1.6 billion tones of polymetallic nodules containing high grade nickel, copper , cobalt and manganese, in the Clarion Clipperton Zone of the Pacific Ocean.
The Planet’s Largest Resource of Battery Metals could electrify the entire US electric vehicle fleet!
The Metals Company successfully concluded its $75 million multi-year deep-sea research program to establish the potential impacts of the Company’s proposed polymetallic nodule collection operations.
Recent price action , after Maersk has bailed and divested of the company, makes one ask who is buying and why. There are quite a few companies, that have stated they would not use the metals from the seabed for their purposes (Volvo, BMW, and others). It is not just EV's that need these metals, but also the defense industry. With large nickel mines in Russia does the seabed become more critical as a resource ? In a world with a new "iron curtain", will metals become strategic asset ? The biggest risk might be that a Chinese (government owned or controlled ?) makes a large investment into TMC or takes over the company outright. Their time horizon is long, and all of a sudden they own all the rights (most profitable CCZ areas) to mine the sea floor - as TMC had secured these. I do owns-me TMC, and the investment should be looked at as a "lotto" ticket or aggressive metals macro hedge. BUT if/when the offers fade (the float of the shares in comparison to the share concentration in a very few hands) could lead to large short term price increases that could be far above where any fairy tale take over offer would be announced (i.e. at market buy orders that would be executed at moon prices where some strange offers are placed). The CCZ is in international water, except for those parts governed by certain island states that have often bilateral contracts, or where area's have been geographically assigned (European countries among them). So, the US or any other country could not make the argument that China or India or any other country would not have the rights to mine there, once the ISA has passed its rules. What if TMC is taken over......... A long shot for sure
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@realisticLeade78471, that`s a very good analysis. thanks for sharing your opinion!
The biggest risk might be that a Chinese (government owned or controlled ?) makes a large investment into TMC or takes over the company outright. Their time horizon is long, and all of a sudden they own all the rights (most profitable CCZ areas) to mine the sea floor - as TMC had secured these. I do owns-me TMC, and the investment should be looked at as a "lotto" ticket or aggressive metals macro hedge. BUT if/when the offers fade (the float of the shares in comparison to the share concentration in a very few hands) could lead to large short term price increases that could be far above where any fairy tale take over offer would be announced (i.e. at market buy orders that would be executed at moon prices where some strange offers are placed).
The CCZ is in international water, except for those parts governed by certain island states that have often bilateral contracts, or where area's have been geographically assigned (European countries among them). So, the US or any other country could not make the argument that China or India or any other country would not have the rights to mine there, once the ISA has passed its rules. What if TMC is taken over......... A long shot for sure