Good afternoon, everyone and thank you for participating in The Metals Company Fourth Quarter and Full Year 2022 Corporate Update Conference Call. Joining us today are The Metals Company, Chairman and Chief Executive Officer; Gerard Barron; and Chief Financial Officer, Craig Shesky. Following their remarks, we will open the call for your questions. Before we go further, I would like to turn the call over to CFO, Craig Shesky, as he reads the company’s Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements and information about the use of non-GAAP measures. Craig, please go ahead.

Thank you. Please note that during this call, certain statements made by the company will be forward-looking and based on management’s beliefs and assumptions from information available at this time. These statements are subject to known and unknown risks and uncertainties, many of which maybe beyond our control, including those set forth in our Safe Harbor provisions for forward-looking statements that can be found at the end of our fourth quarter 2022 corporate update press release. Such statements may also be found in our annual report on Form 10-K for the year ended December 31, 2021 and other reports subsequently filed with the SEC, including our upcoming 10-K for the year ended December 31, 2022. I will then provide further detail about the risks related to our business. Additionally, please note that the company’s actual results may differ materially from those anticipated and except as required by law, we undertake no obligation to update any forward-looking statements. Our remarks today may also include non-GAAP financial measures, including with respect to free cash flows and additional details regarding these non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial measures can be found in the slide deck being used with this call. And the slide deck is now available on our website at investors.metals.co. I will now turn it over to Gerard Barron, TMC’s Chairman and Chief Executive Officer. Gerard, please go ahead.

Thank you, Craig and good afternoon and thank you all for joining us today for our fourth quarter 2022 corporate update call. You are welcome to follow along with our slide deck or if you are joining us by phone, you can access it at any time at investors.metals.co. The fourth quarter saw some incredible and historic milestones for TMC, NORI, and our strategic partner and shareholder, Allseas. The single biggest milestone, of course, was the first integrated collection and lift of polymetallic nodules in the CCZ since the 1970s, in which 4,500 tons of nodules were collected and over 3,000 tons were lifted to the surface. But it wasn’t just about collecting nodules. The test and the monitoring campaign running in parallel also collected over 200 terabytes of environmental data and that data will help us better understand absolute impacts of nodule collection, while lifecycle analysis can help us better understand relative impacts. On that front, the full benchmark lifecycle analysis previewed on our last call, but now released in full after third-party review shows that the NORI-D project model performed better in almost every impact category analyzed than all land-based throughout chosen for comparison. But we are not alone in the quest to provide the environmental and social guidepost for the responsible use of seafloor resources. And we were very pleased to announce in February that we joined a group of roughly 25 participants to develop an ESG handbook for marine minerals, the first of its kind in this area. And then earlier this month, we announced that Bechtel, a global leader in engineering, procurement and construction will collect and compile the technoeconomic studies being done by various consultants which are required for NORI to lodge its application for an exploitation contract with the ISA. And even in…

There was also an environmental impact monitoring campaign that monitored every part of the collected test you just saw as part of our $100 million NORI-D ESIA program. We’re working with some of the world’s leading marine research institutions to amass one of the most comprehensive data sets ever compiled of the deep sea, some of which are highlighted on this page. During the collected test, scores of independent scientists and marine experts monitored the operations from a dedicated research vessel. The initial data generated during the two monitoring campaigns formed part of a broader data set gathered during the 16 offshore environmental baseline and resource definition campaigns conducted by TMC since 2012 as part of its environmental and social impact assessment for the NORI-D project. Our team is preparing to submit the first batch of this data to the ISA, and we expect that it is likely the most extensive deep-sea data set of its kind on the planet. As mentioned earlier, the ISA is well ahead of the curve when it comes to marine protected areas, as you can see in box one. In addition to these, various mitigation strategies are available to us. The process of upgrading the pilot collection system we had in the water last year to a full-scale commercial system is already underway. And the expert engineers at Allseas are leveraging the data and learnings from our offshore trials to optimize designs to further reduce our impacts, including plume and noise generation. We’re pioneering a precautionary approach to development of this project and simultaneously undertaking a rigorous process of stakeholder engagement and public consultation. The data gathered from our offshore campaigns has and will continue to advance society’s understanding of the deep sea in the CCZ and the potential impacts of our operations in…

Thank you, Gerard. So starting place is always for valuation is our NPV. And in March 2021, AMC Consultants issued an SEC Regulation S-K 1300 compliant initial assessment of the project economics for the NORI-D area. The NORI initial assessment is available on the Investors section of our website and on NORI-D financial model can be found beginning on Page 310 of that PDF document. But for modeling purposes, we’ve also now added the excel tables from this initial assessment as a separate document. Just look for the Excel icon as you scroll down. And that initial assessment, which was a point-in-time analysis, arrived at a net present value of $6.8 billion for NORI-D at the beginning of 2021. But if you run that same model simply by updating it for current metal prices, the net present value of NORI-D would be approximately $13 billion, again on just 22% of our total estimated resource. Looking back on 2022, we haven’t had all of them, though we’ve completed most of our stated milestones, particularly those on the project development side. We do have more work to do to sign some definitive agreements on Project Zero, and we’ve talked about some of the new partnerships on that front. And we’re happy with where the discussions are headed. We’ve also been very pleased to share the results of the benchmark LCA study with potential off-takers. Now the next page lays out some of the critical milestones that we think can and should lead to step changes in our public valuation. These next critical milestones include, of course, continued progress from the ISA working as we speak on the final exploitation regulations, NORI submitting an exploitation application for the NORI-D area, the ISA then granting an exploitation contract over the NORI-D area. And then…

Thank you, Craig. After the achievements we reported in November, we really focused on adding names to the ecosystem working hard on the first of this kind project. We’ve succeeded in adding more credibility to this project with the help of brand names like Benchmark, PAMCO, Bechtel, all of the participants in the ESG handbook for Marine Minerals and of course, the continued unwavering support of Allseas. Our focus for the next quarter and the rest of 2023 is to continue building partnerships, some of which can help on the financing front and craft the best possible exploitation application contract. I know our team is up to the challenge. And speaking of our team, many of whom I know will be listing, I’d like to extend an enormous thank you for their dedication and enormous efforts to this important mission. So thank you for your interest and attention. And with that, we’d like to turn it back to the operator for any Q&A.

[Operator Instructions] Our first question comes from the line of Dmitry Silversteyn from Water Tower Research. Your question please.

Good afternoon gentlemen. Thank you for taking my question. I have a couple. First of all, on this PAMCO agreement, how long do you expect the PAMCO to actually trial the tons that you sent and come up with the economic flow sheet and whether or not it can be done and at what cost?

Yes. Hi Dmitry. Look, PAMCO has been working for a little while, on some samples that we had previously sent them. And so we expect to be in a position later this year, hopefully, by the third quarter to move to a binding MoU, which will also cover off all of the economics that go with that. So, you can expect news in a reasonably short timeframe there. But PAMCO have an enormous expertise when it comes to processing nickel ores. And of course, the work that we did in our pilot program was a good platform. And so we have a high degree of confidence that we will have a good outcome there.

Okay. That’s good. Just a follow-up on that, you mentioned that they are looking at processing 1.3 million tons a year or you said or more. What’s the capacity you think of the plants that they are thinking and the equipment that they are thinking of using? In other words, can they process 2 million, can they process 5 million, sort of what’s the limitation there with the current equipment?

Well, PAMCO had a beautiful facility. And some of my team and I were there recently, and in fact, we have had some of the team have had many visits to the PAMCO facility. They run three lines and Stage 1 will be dedicating one line to this project. And – but it is – the plan would be to utilize the other lines as well, and there is certainly room for expansion beyond those three lines. And so that could see us getting close to 4 million tons capacity there.

Got it. So, 1.3 million is about the capacity of one line or thereabouts, and you have room to expand it if there is enough material that you could provide them to process?

That’s right.

Okay. Secondly, let me switch gears a little bit and talk financials. So, you have got $5 million from low-carbon royalty. So, that’s going to bolster your cash position a little bit into 2023. And you have what looks like arranged a $25 million, I guess I can call it a 18-month float or so, you said by the end of ‘24. So, that obviously gives you room to negotiate a more permanent and more robust financing structure. I am guessing that, that’s still your intention and that’s something that you are working on completing this year?

Yes. As we mentioned, we have an ATM in place, and we had many approaches from people wanting to participate in an equity raise. But we are very protective of equity. And we were so delighted that also has agreed to extend this credit facility because we do have a lot of people at the table, and we – as we spend more money, it adds more certainty to the project. And it’s a very conventional way for companies at our stage of development to finance their way into production by inviting other participants and that could be people – larger mining companies or oil and gas companies or logistics companies or financial players into the asset itself. And of course, most of the money, like more than 80% of every dollar we spend is at the project level. And so we are working very hard on that. There are discussions that you don’t want to rush, you want to let them play out naturally. And as we get closer, we find there are a lot more people sat at the table than they were even three months ago. And so we want to bring that to an orderly conclusion in the best interest of TMC equity holders.

Fair enough and thank you. And then just the last question on the Benchmark Mineral Intelligence report, I would assume it helps you with your efforts as you mentioned it certainly gives more gravitas to your claims of environmental impact. But I am guessing that it also is perhaps contributing to greater level of interest from potential investors or even potential customers taking – getting ready to take to look at your materials as a takeoff agreement?

Yes, absolutely. I mean we were – we of course, completed an LCA some years ago, but the observers were saying, yes, but there are a couple of teams people part of that and wasn’t independent enough. So, we said, okay, let’s go and hire someone who is entirely independent who can then put it out to peer review and see what it comes back with. And surprise, surprise, it came back with a result very similar to the quality piece of work that was done previously. But having an independent verification around that is really important because you can’t just look at one aspect. You have to look through the lens of a multi-tiered LCA to look at a broad range of impacts, and this project just shines at all levels. And so 227 pages of findings, I hope you get to read it because it’s exciting and it just highlights some of the benefits that this resource offers compared to the known alternatives.

Prefect. Thank you for that and that’s all the questions I have and congratulations on our very active and productive year.

Thank you, Dmitry.

Thanks Dmitry.

Thank you. [Operator Instructions] And our next question comes from the line of Malcolm McDonald from Bank of America. Your question please.

Hi guys. Most of my questions were just answered. But kind of high level. And first of all, congratulations on the PAMCO in a capital-light processing approach, but high level, why the change in chain [ph] from France?

Well – hi, Malcolm. Look, it’s interesting, isn’t it. I mean 18 months ago, President Macron put aside €300 million to fast track the development of the license area in the CCZ. And I think his words were something to be effective. I can hear the cries now, but we have got this big ocean resource. France needs to reindustrialize. We need to secure our supply lines and create jobs. And to that, we are going to need a lot of metals. So, why the turnaround, look, I think you probably have to look at the political landscape, and how that’s changed in France. And I think that’s happening in a lot of countries where the green parties are having a heavy influence. And of course, France is a shining light when it comes to its nuclear energy generation, the lowest carbon form of energy. And so, you can’t help, but this might have been a trade-off. And – but we hope through the very thorough science that we are funding and other contractors are funding as well, not just us, that those green influences will actually swing our way because it’s a – we have seen in Europe this year with the heavy dependency on Russian gas, that there are trade-offs that need to be made. And you look at countries that were heavily dependent on Russian gas having to fire up their coal-powered energy sources. I mean it makes no sense. And so we hope through science-based evidence that we can build bridges and people can see the benefit of this resource. And of course, the impacts of land-based nickel production, in particular, and mining in general, are there for us all to see. They are just not well understood. And that’s one of our challenges, of course, being able to communicate that effectively. But it was also interesting to see France renew their own license application earlier this year. And of course, that comes with an obligation to move towards exploitation in this 5-year window, so some confusing signals there.

Thank you. I am not showing any further questions from the phone lines at this time. I would like to hand the program back to Craig.

Yes. We have some questions in the webcast queue, which we will take through. First of all, we have one from Ryan Bully. Hi Ryan, I hope you are doing well. The question is, do you expect to pay a dividend as other mining companies do once you are net positive cash flow? Ryan, I like where you heads at. We of course, have some milestones to hit before we get to that point. But I think I would look at our capital-light strategy as evidence that shareholder returns are always going to be front of mind for us, including everything else that we consider with respect to all of our stakeholders. But as we get down the road and get into production and get to free cash flow positivity, one thing that we are going to have to look at is the first project, NORI-D, that’s still just 22% of our resource portfolio. There might be financing opportunities where we are able to progress some of the rest of that 78%. For example, [indiscernible] is right next store to NORI-D, has effectively the same metal grade, effectively the same nodule abundance per square meter. And the only difference is it’s about 72% of the size of NORI-D. So, there are a lot of other blocks that I don’t think the public markets are giving us credit for yet. And depending on where our share price is at the time, we might think it’s a better return to invest any of the cash flow we have back into the project. But we will always be doing those IRR and ROE calculations and making sure that we are doing what’s best for our shareholders when it comes to our dividend and/or share repurchase policy. We also have a question from Frank…

Sure. The – some of them are still in the ship and some have been sent to partners, and we are currently negotiating with Mexican authorities on storing them in a facility in Mexico. And so because we have completed a lot of the trials in 2021 and 2022 on the pilot processing, it’s – we felt we needed to bring back nodules, but the truth is we can’t sell them. They can only be used for testing. And yes, so it’s – they are kind of – we are figuring out what to do with them, to be honest.

So with that, I think we will turn it back over to the operator and wrap up the Q&A.

Certainly. Thank you. This does conclude the question-and-answer session. I would like to hand the program back to management for any final remarks.

Nothing on our end other than thanks everybody for your interest and attention. And we will see you on our Q1 corporate update call coming up in May.

Thank you. Thank you, ladies and gentlemen for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.