Taronis Technologies

US: MNGA

$8.3m market cap

$0.87 last close

Taronis is a technology company that has developed a plasma-based system for renewable fuel gasification and water decontamination. This process generates a hydrogen-based fuel called MagneGas as a by-product that is sold as an alternative metal-cutting fuel to acetylene.

Investment summary

Taronis Technologies (formerly MagneGas) has announced its preliminary sales figures for January. These show the seven successive acquisitions made over the last year driving a fivefold year-on-year increase in monthly sales to $1.42m. Importantly, the figures show 42% growth compared with December, as activity has picked up after the holiday period.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2016A 3.6 (9.6) (10.3) (620.5) N/A N/A
2017A 3.7 (10.3) (11.0) (306.2) N/A N/A
2018E 10.0 (11.5) (13.7) (4.3) N/A N/A
2019E 18.8 (5.6) (7.3) (0.8) N/A N/A
Last updated on 15/02/2019
Industry outlook

The company generated $1.0m in sales during December 2018 compared with $0.3m for the same month in 2017, with the growth being attributable to the acquisitions completed during the year as typically it is a quiet month because of the holidays. In December, the company announced that 98% of the $25m Series C Convertible Preferred financing instrument issued in June 2017 had been converted. This had been the primary source of finance during the intervening period. In January the company raised $4.3m (gross) through a private placing at $0.14/share.

Last updated on 15/02/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net cash (US$m) 10.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (76.7) (84.7) (96.8)
Relative* (78.1) (85.0) (96.8)
52-week high/low US$26.2/US$0.9
*% relative to local index
Key management
Scott Mahoney CFO