Metal Company's Shares Experience a Staggering 489.3% Increase in the First Half of 2025
The Metals Company (NASDAQ: TMC), a deep-sea mineral exploration firm, has been making waves in the market, particularly in the first half of 2025. With a surge of 489.3% in its stock price, the company has caught the attention of investors eager to capitalise on the growing demand for critical minerals, such as cobalt, copper, manganese, and nickel, essential for electric vehicles (EVs) and energy storage.
As of mid-2025, TMC was trading around $6.57 to $6.75, close to its 52-week high near $7.30, though still well below its all-time peak near $15.39 in 2021. The stock exhibits high volatility with a beta of 1.57 and 20.94% volatility, indicating significant price swings.
Analysts rate TMC mostly as a "Strong Buy" with a modest 12-month target near $6.75, implying limited upside from current levels. The Fear & Greed index and other sentiment indicators suggest neutral to fearful market sentiment, underscoring uncertainty.
However, it's important to note that The Metals Company is still in the pre-revenue phase of its growth. It's not certain that, if it does succeed in commencing commercial operations, the company will ultimately be profitable. The regulatory and environmental challenges associated with deep-sea mineral exploration add to the investment risk.
The question of whether TMC stock can continue to rise in the second half of 2025 isn't the best question. Instead, prospective investors should consider their risk tolerances. Only those comfortable with a more speculative investment should consider a position in TMC at this time.
In April 2021, President Trump issued an executive order asserting it's the nation's policy to advance in seabed mineral development. This move underscores the new administration's keen interest in securing the nation's critical minerals. The Metals Company is one of the companies poised to benefit from this focus.
In June 2025, Korea Zinc made an equity investment of $85.2 million in The Metals Company, exchanging for 19.6 million common shares. This investment further solidifies TMC's position in the market.
In May 2025, The Wall Street Journal prominently featured TMC, highlighting the company's potential and the growing demand for critical minerals. An analyst assigned a bullish price target of $5.50 to TMC stock, indicating a potential upside of around 33% from the current price.
However, investors should brace for fluctuations. Price forecasts imply a potential downward correction of about 13% over the medium term, while technical indicators show recent positive momentum. The stock's speculative nature and sensitivity to regulatory or market news mean investors should approach TMC cautiously, ideally as a smaller part of a diversified portfolio rather than a core holding.
For investors with a higher risk tolerance seeking speculative opportunities in critical minerals and deep-sea mining, TMC stock currently offers an intriguing, albeit volatile, growth prospect in the second half of 2025. However, due to its pre-revenue status, regulatory risks, and price volatility, it should be approached cautiously.
- With its stock price surge and ties to essential minerals for EVs and energy storage, The Metals Company has become an appealing investment option for those seeking to capitalize on the critical minerals market.
- Despite analysts rating TMC a "Strong Buy" and a recent investment by Korea Zinc, the company's pre-revenue status, regulatory risks, and price volatility necessitate careful consideration for prospective investors.
- Given the speculative nature of The Metals Company and the potential for downward corrections, investors with higher risk tolerances may find TMC stock an intriguing growth prospect in the second half of 2025, but should approach it cautiously, preferably as part of a diversified portfolio.
