Odyssey Marine Exploration Reports Second Quarter 2024 Results and Provides a Company Update

Rhea-AI Summary

Odyssey Marine Exploration (NASDAQ: OMEX) reported Q2 2024 results and provided a company update. Key highlights include:

1. The NAFTA arbitration case against Mexico for the ExO Project is nearing conclusion, with the Tribunal's decision being translated.

2. Odyssey received a $9.4 million payment from a residual interest in a shipwreck project, but emphasizes focus on subsea mineral exploration.

3. The company completed sea trials of two Autonomous Benthic Mini Landers, set for deployment in the Cook Islands.

4. Odyssey's Research and Scientific Services team developed innovative data analytics for forecasting nodule abundance, to be presented at the 52nd Underwater Minerals Conference.

5. Financial statements are available in the Q2 2024 10-Q filing.

Positive

• Received $9.4 million payment from residual interest in a shipwreck project
• Completed sea trials of two Autonomous Benthic Mini Landers for environmental data collection
• Developed innovative data analytics for forecasting nodule abundance
• Secured contract for environmental data collection in Cook Islands exploration campaigns

Negative

• No specific financial metrics or earnings results provided in the press release
• Company does not expect legacy shipwreck projects to be an ongoing source of income

Financial Analyst

Odyssey Marine Exploration's Q2 2024 results present a mixed financial picture. The company received a $9.4 million payment from a past shipwreck project, providing a short-term cash infusion. However, management emphasizes this is not a recurring revenue stream, indicating potential future cash flow challenges. The ongoing NAFTA arbitration against Mexico for the ExO Project remains a critical uncertainty that could significantly impact the company's future.

The pivot towards subsea mineral exploration shows promise, with new technological deployments and analytical services. However, the lack of detailed financial figures in this report is concerning. Without specific revenue, expense, or profit/loss data, it's challenging to assess the company's current financial health or the success of its strategic shift. Investors should approach with caution until more concrete financial metrics are available.

Marine Resource Expert

Odyssey's transition from shipwreck exploration to critical minerals extraction represents a strategic pivot towards a potentially lucrative but highly competitive market. The development of Autonomous Benthic Mini Landers and advanced data analytics for nodule abundance forecasting demonstrates technological leadership. These innovations could provide a competitive edge in the emerging deep-sea mining industry.

The company's involvement in Cook Islands exploration projects and its presentation at the Underwater Minerals Conference indicate a proactive approach to establishing a foothold in the South Pacific region. However, deep-sea mining faces significant environmental and regulatory challenges. The success of Odyssey's new direction will depend on navigating these hurdles and the ability to commercialize its technology and expertise in a nascent industry with uncertain timelines for profitability.

TAMPA, Fla.--(BUSINESS WIRE)-- Odyssey Marine Exploration, Inc. (NASDAQ: OMEX), an ocean exploration pioneer engaged in the discovery, development and extraction of critical minerals that provide solutions to global challenges, reported results for the second quarter ended June 30, 2024, and provided an update on current projects and future plans.

"We are approaching the conclusion of our NAFTA arbitration case against Mexico for the ExO Project, with the final step being the Tribunal's decision, which is currently being translated. The outcome of this case will be significant, and Odyssey is prepared with a robust business plan to continue our mission of unlocking valuable ocean resources that can help feed and power the future in any scenario,” said Mark Gordon, Odyssey Chief Executive Officer and Chairman of the Board of Directors.

“Odyssey is an industry leader in marine research and exploration with unique expertise that is highly sought after in the industry. We focus on multiple types of minerals in various regions and jurisdictions, which allows us to adapt to changing mineral markets and geopolitical conditions, ensuring resources are directed toward the best opportunities. Our capabilities can be used to advance our projects and those in which we invest, as well as to accelerate progress across the industry, enabling us to thrive and capitalize on the positive trends in the ocean mineral resource sector,” continued Gordon.

Odyssey also announced earlier this year that it received a payment of approximately $9.4 million from its residual economic interest in a shipwreck project. "Although we appreciate this financial boost from our past, we want to emphasize that we do not have interests in any other shipwrecks, and we do not expect legacy shipwreck projects to be an ongoing source of income. We remain committed to and focused on our subsea mineral exploration and development programs," noted Gordon.

NAFTA ARBITRATION UPDATE

On June 10, Odyssey received a letter from the International Centre for Settlement of Investment Disputes (ICSID) advising “that the Tribunal’s determinations are in the process of being translated. The Tribunal will provide the parties with an exact date of dispatch with prior notice.” We have not received further information from ICSID since that update. Investors and interested parties are encouraged to sign up for Odyssey’s email alerts through the company’s website here to receive company news as it is released: https://ir.odysseymarine.com/investors/default.aspx.

EXPLORATION OPERATIONS UPDATE

Odyssey’s Marine Operations team recently completed a sea trial of two of its Autonomous Benthic Mini Landers. These cutting-edge pieces of equipment will next go to the South Pacific, where they will be deployed under contract to provide critical environmental data to exploration campaigns taking place in the Cook Islands. Odyssey is currently invested in two of the three exploration license holders there.

Odyssey’s Research and Scientific Services (RSS) team is also providing innovative analytical services for projects where Odyssey has investments. Recently, the team developed data analytics for forecasting nodule abundance using geostatistical techniques, geological sample data, and remote sensing data. This has contributed to this mineral resource assessment and precise exploration planning efforts. Odyssey’s RSS team will present this unique approach at the 52^nd Underwater Minerals Conference taking place in Rarotonga, Cook Islands, on September 15-21, 2024.

SECOND QUARTER RESULTS

Consolidated financial statements are incorporated into Odyssey’s Quarterly Report on Form 10-Q for the period ended June 30, 2024, which is available on the company’s website at www.OdysseyMarine.com as well as at www.sec.gov.

About Odyssey Marine Exploration

Odyssey Marine Exploration, Inc. (Nasdaq: OMEX) is a deep-ocean exploration pioneer engaged in the discovery, validation and development of subsea mineral deposits in a socially and environmentally responsible manner. Odyssey provides marine services for private clients and governments who are interested in exploring their Exclusive Economic Zone (EEZ) to survey, map and identify any potential mineral resources present. The company focuses on the exploration of polymetallic nodules (battery metals to power the future) and subsea phosphate deposits (fertilizer to feed the future) which the company believes will provide a benefit to society now and in the future, For additional details, please visit www.odysseymarine.com.

Forward Looking Information

Odyssey Marine Exploration believes the information set forth in this Press Release may include "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Certain factors that could cause results to differ materially from those projected in the forward-looking statements are set forth in "Risk Factors" in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the Securities and Exchange Commission on March 31, 2022. The financial and operating projections as well as estimates of mining assets are based solely on the assumptions developed by Odyssey that it believes are reasonable based upon information available to Odyssey as of the date of this release. All projections and estimates are subject to material uncertainties and should not be viewed as a prediction or an assurance of actual future performance. The validity and accuracy of Odyssey's projections will depend upon unpredictable future events, many of which are beyond Odyssey's control and, accordingly, no assurance can be given that Odyssey's assumptions will prove true or that its projected results will be achieved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240809321017/en/

Liz Shows

Odyssey Marine Exploration, Inc.

(813) 876-1776

lshows@odysseymarine.com

Source: Odyssey Marine Exploration, Inc.

FAQ

What is the status of Odyssey Marine Exploration's NAFTA arbitration case against Mexico?

The NAFTA arbitration case is nearing conclusion, with the Tribunal's decision currently being translated. Odyssey received a letter from ICSID on June 10, 2024, stating that they will provide the parties with an exact date of dispatch with prior notice.

How much did Odyssey Marine Exploration (OMEX) receive from its residual interest in a shipwreck project?

Odyssey Marine Exploration received approximately $9.4 million from its residual economic interest in a shipwreck project earlier in 2024.

What new technology has Odyssey Marine Exploration (OMEX) developed for subsea exploration?

Odyssey has developed two Autonomous Benthic Mini Landers for environmental data collection and innovative data analytics for forecasting nodule abundance using geostatistical techniques, geological sample data, and remote sensing data.

Where will Odyssey Marine Exploration (OMEX) deploy its new Autonomous Benthic Mini Landers?

Odyssey will deploy the Autonomous Benthic Mini Landers in the South Pacific, specifically in the Cook Islands, to provide critical environmental data for exploration campaigns.