This Small-Cap Gem Could Be Your Ticket To Millionaire Status

In the world of small-cap gems with incredible long-term upside, readers are well aware that I’m very bullish on The Metals Company (NASDAQ:TMC) and its long-term outlook. 

There are a number of reasons for this view, which I’ll dive into shortly. But in terms of companies with 10x or 100x upside over the long-term, this is one company with some of the easiest-to-understand catalysts that I think could (and probably should) propel this company to a multi-hundred-billion dollar valuation down the line.

That’s a big prediction, so let’s back it up. 

Monumental Resource Base

Deep sea visual

One of the key factors that I continue to harp on as intrinsic to my bullish thesis on TMC is the company’s control of what it claims is the world’s largest undeveloped battery metals resource in the Clarion-Clipperton Zone (CCZ).

The company estimates that it has access to around 274 million metric tons (Mt) of wet nodules, including 51 Mt of probable reserves. These are the first, and largest-ever declared reserves for deep-sea mining, with key battery minerals included in these nodules that are surging in value. Scaling commercialized production should lead to a mine life of around 25 years, though we’ll have to see ultimately how fast TMC can scale, and what it’s able to bring to market (at what quality).

Initial exploration suggests that much of the company’s proven reserves are indeed on the higher quality end of the spectrum. So, once TMC starts commercial production near the end of 2027, this is a stock I think investors will jump aboard as a way to play the ongoing commodity bull market cycle. 

Regulatory Tailwinds Explode

US flag

Having all these reserves are great, but the reality is that TMC is dealing in mostly international waters with its operations. As such, things can get a little dicey, considering where the Clarion-Clipperton Zone is located geographically.

With TMC making a big move to shift to U.S. jurisdiction under NOAA’s new consolidated process, I think investors have garnered a lot more hope that commercialization could come sooner than expected. The first-ever deep-seabed mining application in 2025 for ~65,000 km² (619 Mt nodules, plus 200 Mt upside) as approved, with president Trump’s April 2025 executive order and Defense Production Act invocations unlocking this path.

I think that this fresh government backing should indeed lead to greater investor demand. If TMC is able to mine the sea floor while flying the U.S. flag, given all that’s gone on of late, this is a stock that could see material upside as demand for battery minerals remains high and supply comes down.

Pathway to Commercialization Intact

Stacks of $100 bills

I continue to come back to TMC’s late-2027 timeline for commercialization, as that’s key to this company’s investment thesis. If TMC can achieve commercial production before this timeline, I think investors will need to update their models accordingly. Personally, I’m betting on such a beat on this front, for a number of reasons.

First, it would be wise for the company’s management team to do everything in its power to take advantage of cycle highs in most key commodity prices. This geopolitical backdrop provides plenty of upside for miners using novel technologies to bring high-grade metals to market. As such, I think TMC is well-positioned for big stock price gains over the course of the next 18 months, if my thesis is correct on this front.

The other key factor I think is important to consider is that TMC has a cash hoard of more than $115 million, and a strong current ratio. In other words, while this is a company that’s burning through cash, it’s also got considerable runway to get to production capacity in short order. 

With no debt overhang, and only positive fundamental catalysts down the line, I think this stock is looking like very reasonable value relative to its long-term growth prospects.