The Metals Company Inc. Just Got Incredible News from the NOAA. Here's What It Means for Investors.

The Metals Company (NASDAQ: TMC) isn't doing something new, per se. After all, the start-up is just trying to build a mining business. However, the location of the mining operation is a bit unique. This is why the National Oceanic and Atmospheric Administration (NOAA) is involved.

In March, The Metals Company got some incredible news from NOAA. And investors still need to treat the stock with extreme caution. Here's what you need to know.

NOAA is still figuring out the rules

The Metals Company is attempting to build a deep-sea mining operation. Deep-se mining has been done before, but it just wasn't economically sustainable. The Metals Company has been developing new technology, which it believes will enable it to generate profits despite the unusually harsh conditions under which its mine will operate. All of the pieces are slowly starting to come together.

Image source: Getty Images.

One of the biggest hurdles, however, is getting regulatory approval. Only the path toward regulatory approval was just changed to speed the process. So, in a sense, everyone involved is kind of making this up as they go, given the new rules. When The Metals Company submitted its application, there was no way for it to know if it was giving NOAA exactly what it wanted. Which is why it was such positive news for NOAA to tell The Metals Company that its application was in "substantial compliance."

In simple terms, NOAA said it will continue to consider The Metals Company's application without any back-and-forth redrafts.

The Metals Company still has a lot of work to do

There is no question that the NOAA update is a positive outcome. However, it is still just the first step in getting the regulatory approvals The Metals Company needs. So investors need to take the news with a grain of salt. In fact, even after the miner obtains all the approvals it needs, it still has a long and difficult road ahead.

Building a standard mining operation is a major undertaking and entails high costs. With much of The Metals Company's work taking place underwater, the job is even harder. And it is worth noting that the company isn't currently generating any revenue. Its income statement actually started with operating expenses of $140 million in 2025. The bottom line was a loss of $0.83 per share.

Given this start-up's still-early stage of development, only the most aggressive investors should consider The Metals Company, even after the positive news from NOAA.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.