TMC the Metals Co. Inc.: A Volatile Tale of Growth, Cost Shock, and Market Frenzy

TMC the Metals Co. Inc. (NASDAQ: TMC) has once again found itself at the center of a maelstrom of headlines, trading volatility, and investor intrigue. The company’s stock price, which closed at $7.72 on December 2, 2025, has been dancing between a 52‑week low of $0.721 and a peak of $11.35, a swing that has rattled analysts and retail traders alike.

1. Surge in Operating Expenses Signals Potential Inefficiencies

StockChase.com reports that TMC’s operating expenses rose 108.1% to $46 million in the latest quarter. This doubling of costs is a red flag for a company whose revenue base has yet to be disclosed in the public domain. For a firm that claims to supply metals for electric‑vehicle (EV) batteries, such an escalation raises several questions:

  • Is the company investing aggressively in new production lines or raw‑material acquisition?
  • Are supply‑chain bottlenecks forcing higher logistics and labor costs?
  • Could the spike reflect internal mismanagement or a lack of cost discipline?

Even if the increase is justified by strategic expansion, the absence of a corresponding rise in top‑line sales will weigh heavily on earnings, especially given TMC’s negative P/E ratio of –9.26.

2. A 17.7% Rally Amid Global Critical‑Minerals Push

Yahoo Finance captured a 17.7% jump in TMC’s share price as several countries announced joint initiatives to ramp up critical‑minerals production. This rally underscores the broader geopolitical narrative: nations are scrambling to secure supplies of battery‑grade metals to fuel the transition to clean energy. TMC’s stated focus on extracting metals from polymetallic rocks positions it as a potential beneficiary of this “resource race.”

However, the rally’s sustainability hinges on whether TMC can deliver on its supply promises. The market’s enthusiasm is largely speculative at this point; without concrete contracts or production milestones, the price may be as volatile as the company’s own financials.

3. Insider Sell and Unusual Options Activity: Signals of Diverging Sentiment

Two separate reports from December 3 and 4 add layers of complexity:

  • Insider sell: Anthony O’Sullivan liquidated 100,000 shares, a move that can be interpreted as a lack of confidence from a senior stakeholder.
  • Options frenzy: American Banking News noted a 125% surge in call‑option purchases (53,384 contracts) against an average daily volume of 23,720. This spike suggests that a segment of sophisticated investors is betting on further upside, possibly anticipating a breakout from the current trading range.

The juxtaposition of insider selling with aggressive option buying indicates a deeply divided market view, one that can amplify price swings in the short term.

4. The Bottom Line: A Company at the Crossroads

TMC’s current trajectory illustrates a classic “growth versus profitability” dilemma:

  • Growth Narrative: The company’s alignment with the EV battery supply chain and the global push for critical minerals make it a compelling narrative for long‑term investors seeking exposure to the green transition.
  • Profitability Concerns: The dramatic rise in operating expenses, coupled with a negative P/E and the lack of disclosed revenue figures, raise doubts about the company’s ability to translate its strategic positioning into sustainable earnings.

For investors, the decision will come down to risk tolerance and conviction in the company’s ability to manage costs while scaling production. The market’s current volatility, reflected in sharp intraday swings and divergent insider behavior, suggests that TMC’s stock is far from a calm, long‑term play. It is, instead, a high‑stakes, short‑term battleground where every quarterly report and geopolitical announcement can trigger a cascade of buying or selling.

In a sector where supply chain reliability and cost efficiency are paramount, TMC must demonstrate that its operational expansion is not merely a cost‑driven expansion but a strategic move that delivers incremental value. Until such proof materializes, the company’s share price will likely remain a mirror of the market’s shifting sentiment—oscillating between optimistic speculation and cautious skepticism.