Shares of MagneGas (NASDAQ: MNGA) are down 4.8% mid-day, trading at a new 52-week low of $0.57. The company this morning reported a 150% improvement in MagneGas2® production rates and a 50% reduction in production costs since the introduction of Butanol as a feedstock in April 2017. “Operationally, the research, development and production of MagneGas2® is one of the largest contributors to our cost structure. The use of butanol positively impacts the Company’s financial metrics in several ways. First, we are able to significantly reduce the labor hours required to produce our gas, which enables us to reallocate labor to further support growth at our distributor operations without increasing payroll costs. Second, we have eliminated a number of costly inputs and post production costs that now make the gas meaningfully more profitable per unit of output. We believe that as we scale the production of our gas in the coming quarters, the financial impact of this development will become a significant factor in our ability to become a cash-flow positive business,” MagneGas CFO Scott Mahoney stated in the news release. MagneGas trades in a 52-week range of $0.57-$8.70.
To view the full press release, visit http://nnw.fm/9xVlX
About MagneGas Corporation
MagneGas Corporation owns a patented process that converts various renewables and liquid wastes into MagneGas fuels. These fuels can be used as an alternative to natural gas or for metal cutting. The Company’s testing has shown that its metal cutting fuel “MagneGas2®” is faster, cleaner and more productive than other alternatives on the market. It is also cost effective and safe to use with little changeover costs. The Company currently sells MagneGas2® into the metal working market as a replacement to acetylene. The Company also sells equipment for the sterilization of bio-contaminated liquid waste for various industrial and agricultural markets. In addition, the Company is developing a variety of ancillary uses for MagneGas® fuels utilizing its high flame temperature for co-combustion of hydrocarbon fuels and other advanced applications. For more information on MagneGas®, please visit the Company’s website at http://www.MagneGas.com.
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