Taronis Technologies

US: TRNX

$15.6m market cap

$0.51 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

Q119 revenues quadrupled year-on-year to $4.9m as a result of acquisitions. Operating costs, including one-off acquisition costs, increased by $5.1m. Operating losses widened by $3.3m year-on-year to $6.2m. The company moved from $0.6m net cash to $1.6m net debt during the period as $13.6m cash from financing activities was consumed by operating losses and $11.3m invested in acquisitions and purchases of property and equipment. Since the period end management has raised $2.0m (gross) through a placing of 1.1m new shares at $0.46 and $1.5m convertible debentures. Further financing will be required if the company is to remain a going concern. Our estimates are under review.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 3.7 (11.1) (11.0) (306.3) N/A N/A
2018A 9.7 (13.9) (15.1) (6.0) N/A N/A
2019E 23.4 (4.2) (6.0) (0.3) N/A N/A
2020E N/A N/A N/A N/A N/A N/A
Last updated on 25/07/2019
Industry outlook

Management completed this initial acquisition phase in Q119 with a further three acquisitions. This extended retail network generated $2.2m revenues in April. The focus is now on driving sales of proprietary MagneGas cutting fuel and improving profitability so that existing retail network can generate cash to finance further technology development.

Last updated on 25/07/2019
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 188.6 (14.3) (90.8)
Relative* 180.3 (16.5) (91.2)
52-week high/low US$8.6/US$0.1
*% relative to local index
Key management
Scott Mahoney CFO