Why The Metals Company Stock Soared in August

Encountering some rough seas earlier this summer, shares of The Metals Company (NASDAQ: TMC) sank 19.6% in July. Last month, however, the deep-sea mining specialist found calmer waters -- and its stock thrived as investors celebrated the company's reporting of second-quarter 2026 financial results. Plus, an analyst's bullish take on the stock provided a catalyst at the end of the month, propelling shares higher.

According to data provided by S&P Global Market Intelligence, shares of The Metals Company rose 34% in August.

Image source: Getty Images.

Management believes the company's sailing in the right direction

Announcing Q2 2026 financial results on Aug. 13, The Metals Company reported earnings per share (EPS) of negative $0.14 -- a slimmer loss than the $0.20 it reported during the same period in 2025.

In the press release accompanying the Q2 2026 financial results, Gerard Barron, the company's CEO, reassured investors that The Metals Company is advancing steadily toward achieving the necessary certifications. Barron stated, "The regulatory picture is becoming clearer as our applications continue to progress through NOAA's [National Oceanic and Atmospheric Administration] review process." Moreover, Barron commented that despite encountering some delays, the company remains "confident that the permit will arrive well in advance of offshore vessel commissioning by the end of 2027, which we believe remains the critical path for production start."

Towards the end of the month, investors found another reason to click the buy button. Assigning a buy rating, Stifel initiated coverage of The Metals Company stock on Aug. 27 with a $10 price target. Based on shares of The Metals Company closing at $5.01 on Aug. 26, the Stifel price target implies upside of 96%.

What's a critical metals-minded investor to do now?

While the Sifel price target is certainly noteworthy, potential investors should take it with a grain of salt. The more pressing issue for The Metals Company right now is continuing to progress toward obtaining the requisite certifications to commence commercial deep-sea mining operations for copper, nickel, and other critical metals. Investors, therefore, should be on the lookout for any updates.

Beyond updates on the company's certification applications, investors should look for news on its offshore vessel development, since securing the necessary certifications to conduct deep-sea mining operations means little if the company doesn't have the proper infrastructure in place. The Metals Company expects to award contracts for several components of its offshore system through the second half of 2026, including navigation equipment as well as a storage and offloading system.

Even if the company remains on schedule with contract awards and makes further progress toward achieving certifications, it's important to recognize that The Metals Company stock remains a largely speculative investment, as profitability may remain elusive for some time. Those with lower risk tolerances who are interested in copper stocks and nickel stocks, therefore, may want to consider other options at this point.

Scott Levine 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.