Buckle up, folks, because today’s market is dishing out some serious action, and one stock is stealing the spotlight: TMC the Metals Company (NASDAQ: TMC)! As of this writing, TMC is up a whopping 19.86%, trading at $5.20, making it one of the day’s biggest gainers. Why the surge? A massive $85.2 million investment from Korea Zinc, a global heavyweight in metal refining, just lit a fire under this deep-sea mining pioneer. Let’s dive into what’s happening, why it matters, and what traders need to know about the risks and rewards of jumping into a stock like TMC. Plus, if you’re hungry for more market movers like this, you can get free daily stock alerts sent straight to your phone by tapping here.

The Catalyst: Korea Zinc’s Game-Changing Investment

This morning, TMC announced that Korea Zinc, a South Korean titan in non-ferrous metal refining, is pouring $85.2 million into the company through a private placement. That’s not pocket change! They’re snapping up 19.6 million common shares at $4.34 a pop and getting warrants for another 6.9 million shares at $7.00 each. This deal, set to close by June 26, 2025, makes Korea Zinc one of TMC’s biggest strategic shareholders, owning about 5% of the company.

Why’s Korea Zinc so excited? TMC is on a mission to mine polymetallic nodules from the ocean floor—think potato-sized rocks packed with critical metals like nickel, cobalt, copper, and manganese. These are the building blocks for batteries, renewable energy tech, and defense systems. Korea Zinc, with its world-class refining tech, sees TMC’s nodules as a golden ticket to produce high-purity metals and battery materials right here in the U.S., bypassing China’s grip on the supply chain. Their R&D team is already testing TMC’s nodule samples to fine-tune processing pathways. Talk about a match made in mining heaven

This news comes hot on the heels of TMC’s bold moves in April 2025, when they filed the first-ever U.S. application for a commercial deep-sea mining permit, spurred by an executive order from President Trump to fast-track seabed mining. With Korea Zinc’s cash and expertise, TMC’s got the wind at its back to push toward commercial production. No wonder investors are piling in today!

Why Deep-Sea Mining Is the Talk of the Town

Let’s zoom out for a second. The world’s going green, and that means a massive hunger for metals like nickel and cobalt to power electric vehicles, wind turbines, and more. But land-based mining is hitting roadblocks—environmental regulations, labor issues, and geopolitical tensions. Enter deep-sea mining, a frontier that’s got investors buzzing like bees around honey. TMC’s focus is the Clarion-Clipperton Zone in the Pacific, a treasure trove of nodules that some say hold more metals than all land-based reserves combined. That’s a $20 trillion market opportunity, folks

But here’s the kicker: TMC’s not just mining; they’re pitching a lower-impact way to get these metals compared to strip-mining rainforests. Their tech, developed with partners like Allseas, vacuums up nodules with minimal seabed disturbance—at least, that’s the claim. They’ve pledged to leave 30% of their contract areas untouched to protect marine life. Sounds promising, but it’s uncharted waters, and that’s where the risks come in.

The Risks: High Stakes in Deep Waters

Now, let’s not get too starry-eyed. TMC is a speculative play, and speculative means risky. First off, deep-sea mining is still unproven at commercial scale. Nobody’s done it yet, and the tech hurdles are steep—think robots operating 4,000 meters underwater in pitch-black conditions. TMC’s banking on their “Hidden Gem” production system, but scaling that up is no small feat.

Then there’s the environmental angle. Critics, including some scientists and international regulators, warn that seabed mining could mess with marine ecosystems in ways we don’t fully understand. The International Seabed Authority (ISA), which oversees international waters, has been dragging its feet on regulations, and TMC’s decision to bypass them for U.S. permits has sparked controversy. Some call it a bold move; others say it’s a reckless gamble that could violate international law.

Financially, TMC’s not in the black yet. Their Q4 2024 earnings showed a $16.1 million net loss, better than the $33.5 million loss the year before, but still a reminder they’re pre-revenue. With $62 million in cash as of December 2024, plus Korea Zinc’s injection, they’ve got runway, but profitability is a long way off. Analysts predict a -$0.22 EPS for 2025, and the stock’s price-to-earnings ratio is a steep -14.00, signaling it’s trading on potential, not profits.

Oh, and the stock’s volatile—beta of 1.46 means it swings harder than the market. Just yesterday, it gapped down from $4.80 to $4.41 before today’s pop. If you’re trading this, expect a wild ride.

The Rewards: First-Mover Advantage?

On the flip side, TMC’s got some serious upside if they pull this off. Being the first to crack commercial seabed mining could give them a stranglehold on a new industry. Their partnership with Korea Zinc isn’t just about cash—it’s about expertise. Korea Zinc’s “Troika Drive” strategy is all-in on battery materials and green tech, and they’re already building a nickel refinery in South Korea. If TMC can supply the raw materials and Korea Zinc refines them into battery-grade metals, they could corner a chunk of the U.S. market, especially with China’s supply chain dominance in the crosshairs.

Analysts are mixed but leaning optimistic. HC Wainwright slapped a “buy” rating with a $5.50 target, while Wedbush holds a “neutral” with a $6.00 target. Alliance Global Partners is even more bullish at $6.25. With a market cap of $1.57 billion and a 217% surge over the past six months, the momentum’s real.

Plus, the geopolitical tailwinds are strong. The U.S. is desperate to secure critical minerals, and Trump’s executive order is like rocket fuel for TMC’s plans. Their NOAA permit applications are moving forward, and a favorable nod could send this stock to the moon.

Trading Lessons: Riding the Wave Without Wipeout

So, what’s the play here? TMC’s a classic high-risk, high-reward stock, and that’s a perfect chance to talk trading smarts. First, momentum matters. Big news like Korea Zinc’s investment can spark huge moves, but don’t chase blindly. Stocks that gap up 20% in a day often pull back as traders take profits. Set clear entry and exit points, and don’t get married to the stock—love can break your bank.

Second, do your homework. TMC’s story is sexy, but dig into the risks: regulatory pushback, environmental fallout, and execution challenges. Balance that with the upside—first-mover potential and strategic partnerships. Use stop-loss orders to protect your downside, and don’t bet the farm on one stock, no matter how hot it looks.

Finally, stay informed. The market’s a moving target, and catalysts like today’s can shift sentiment fast. Want to keep your finger on the pulse? Sign up for free daily stock alerts at Bullseye Option Trading to get AI-powered tips sent to your phone. It’s like having a market buddy texting you the good stuff every day.

The Bottom Line

TMC’s riding a wave today, thanks to Korea Zinc’s $85.2 million vote of confidence. As of this writing, the stock’s up nearly 20%, and the buzz around deep-sea mining is louder than ever. But this isn’t a slam dunk. The rewards could be massive—think first-mover status in a $20 trillion market—but the risks are just as big, from environmental backlash to unproven tech. For traders, it’s a chance to play a hot stock, but only with eyes wide open and a plan in place. Keep learning, stay sharp, and if you want more market insights, tap here for free daily alerts to keep you in the game!