Should You Invest $1,000 In TMC The Metals Company Right Now?

TMC The Metals Company (NASDAQ: TMC) isn't actually trying to do something new. However, the last time the mining approach this company is attempting was used, well, it didn't prove workable. Here's what you need to know before you invest $1,000 in The Metals Company.

Wait, where is the mine?

A traditional mine is located on land. The Metals Company is attempting to develop a mine at the bottom of the ocean. Building a mine above ground is time-consuming, difficult, and expensive. Developing an undersea mining operation is even more time-consuming, difficult, and expensive.

Image source: Getty Images.

Notably, undersea mining has been tried before and was dropped because it wasn't sustainable. In fact, The Metals Company actually highlights the new technology that it has been involved in developing to improve the undersea mining process. To be fair, the technology being created is actually kind of impressive.

If you are a risk taker, using $1,000 to buy around 155 or so shares might be worth it for you. However, there's a long way to go before The Metals Company is a sustainably profitable business.

The red ink is likely to flow for years

The Metals Company hopes to produce nickel, cobalt, copper, and manganese, which are all important metals in the technology sector. They are used in everything from your cellphone to the missile defense systems that protect entire nations. In fact, given the huge investments in artificial intelligence, it seems highly likely that these commodities will see increased demand in the future.

However, most investors should view The Metals Company as a high-risk start-up. The company's income statement doesn't even report revenue. It starts with operating expenses. In the third quarter of 2025, it lost $0.46 per share, up from a loss of $0.06 in the same quarter of 2024. Given the still early stage of the company's development, it is highly likely that the red ink will continue to flow for years to come.

Consider waiting for more progress

All in all, most investors should probably keep The Metals Company on their watch lists. It is an exciting idea, but there's a long way to go before this idea is actually a sustainably profitable business.

While you could miss out on some early gains if you wait, the mining opportunity here is likely to be long-term in nature. Only the most aggressive investors should own this stock today. And even then, caution is advisable.

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.