Silex Systems Limited · ASX:SLX
Silex Systems — Shareholder Meeting (October 2022)
38 slides from Silex Systems's shareholder meeting presentation, Oct 13, 2022
Slide 1: Silex Systems Limited 2022 Annual General Meeting
For personal use only Silex Systems Limited 2022 Annual General Meeting 13 October 2022 (ASX: SLX) (OTCQX: SILXY) Dr Michael Goldsworthy CEO/Managing Director www.silex.com.au 1
Slide 2: Forward Looking Statements and Risk Factors
Forward Looking Statements and Risk Factors About Silex Systems Limited (ASX: SLX) (OTCQX: SILXY) For personal use only Silex Systems Limited ABN 69 003 372 067 (Silex) is a technology commercialisation company whose primary asset is the SILEX laser enrichment technology, originally developed at the
Slide 3: Our Mission: commercialise SILEX laser enrichment technology
Our Mission: to commercialise the unique SILEX laser enrichment technology for application to: For personal use only Uranium production and Silicon enrichment (silicon Other potential markets (e.g. enrichment (nuclear power) quantum computing) medical isotopes) Our strategy is focused on extracting
Slide 4: Evolution of Enrichment Technology
Evolution of Enrichment Technology For personal use only 1st Generation Technology 2nd Generation Technology 3rd Generation Technology Gaseous Diffusion Centrifuge SILEX Laser Very low efficiency – tails legacy Modest efficiency High efficiency High cost Lower cost Anticipated to be lowest cost Obso
Slide 5: Investment Focus – Strong ESG Credentials
Investment Focus – Strong ESG Credentials For personal use only Investment in three key growth industries with strong ESG credentials: 1) Nuclear Power for Clean Energy – potential to support Net-Zero 2050 targets with carbon free electricity production 2) Next Generation Quantum Computing – expecte
Slide 6: Highlights of the Year in Review and Recent Developments
Highlights of the Year in Review and Recent Developments For personal use only Global Laser Enrichment (GLE) Commercialisation Project / SILEX Uranium Enrichment Technology: • GLE under JV ownership – Silex 51% and Cameco 49% - forging ahead with commercialisation program for SILEX technology • GLE
Slide 7: Nuclear Power Outlook – Impacts for Nuclear Fuel
For personal use only Nuclear Power Outlook – Impacts for Nuclear Fuel www.silex.com.au 7
Slide 8: Global Issues Transforming Energy Markets
Global Issues Transforming Energy Markets For personal use only Climate Change - Ever increasing energy demand driven by population growth and industrialisation - Energy transition to de-carbonise (Net-Zero 2050 target) – climate action becoming more urgent - Growing focus on electrification of tran
Slide 9: Why Nuclear Power is important to achieving Net-Zero
Why Nuclear Power is important to achieving Net-Zero Nuclear power is currently the only economic source of zero-emissions base load electricity For personal use only Clean Energy Zero-Emissions Low Cost 24/7 Reliability LCOE1 ~ US$70/MWHr Base Load Stability Nuclear Power Highest Capacity Factor Cl
Slide 10: Nuclear Renaissance - Industry Developments
Nuclear Renaissance - Industry Developments For personal use only • US: Inflation Reduction Act passed August 2022 - supporting nuclear power generation (including SMRs) and domestic nuclear fuel supply including US$700 million funding for the DOE’s HALEU Availability Program • UK: in April 2022, an
Slide 11: Emerging Next-Generation Small Modular Reactors (SMRs)
Emerging Next-Generation Small Modular Reactors (SMRs)* For personal use only • SMRs are modular, smaller size (50 MWe to 300 MWe) reactors allowing greater flexibility in deployment • SMRs are designed for production-line manufacturing rather than conventional custom built capital projects • SMRs a
Slide 12: Significant Nuclear Power Growth to achieve Net-Zero 2050
Significant Nuclear Power Growth to achieve Net-Zero 2050 For personal use only Nuclear Generation Growth Scenarios Conventional Large-Scale Reactor Population TWh 7,000 Net Zero 226% 6,000 Accelerated 5,000 New Momentum 186% 4,000 127% 3,000 2,000 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2
Slide 13: Uranium Market Outlook – Supply Shortage Forecast
Uranium Market Outlook – Supply Shortage Forecast For personal use only Mid-Case Uranium Supply and Demand Forecast Year Source: UxC Uranium Market Outlook, Q2 2022 • Uranium supply forecasted to be insufficient to meet demand from mid-2020’s www.silex.com.au 13
Slide 14: Key Components of Nuclear Fuel – Price Recovery
Key Components of Nuclear Fuel – Price Recovery For personal use only NA: North America Source: UxC, LLC - Historical Price Data (in US$) • Significant market price increases across key components of nuclear fuel • Enrichment term price (SWU) increase of ~$70/SWU to ~$135/SWU in response to Russia/U
Slide 15: Uranium Price – Price Recovery Underway
Uranium Price – Price Recovery Underway For personal use only Long-Term Uranium Base Price Forecast Year Source: UxC Uranium Market Outlook, Q2 2022 • UxC forecasts mid-case term uranium price ~$60/lb by 2025 and ~$77/lb by 2030 • Spot price currently ~$48/lb (as at 30 September 2022) – up from a lo
Slide 16: Paducah Opportunity may help address US Uranium Vulnerability
Paducah Opportunity may help address US Uranium Vulnerability For personal use only Uranium purchased for US nuclear power reactors, 2011 - 2021 Million pounds U3O8 equivalent US imported ~95% of Uranium purchased in 2021 Source: 2021 EIA Uranium Marketing Annual Report (Released May 2022) www.silex
Slide 17: Emerging Enrichment (SWU) Supply Opportunity for GLE
Emerging Enrichment (SWU) Supply Opportunity for GLE For personal use only Base Case Uncovered Demand Forecast for LEU Supply Uncovered U.S. Requirements Uncovered US Requirements Year Source: UxC Enrichment Market Outlook, Q2 2022 • Forecast uncovered US SWU demand from 2027 is in excess of ~5 mill
Slide 18: SWU Price – Significant Term Price Increase
SWU Price – Significant Term Price Increase For personal use only Long-Term SWU Mid-Price Forecast US$/SWU 180 160 140 120 100 80 60 40 20 0 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Year Mid Price Midpoint Ux LT Average Source: UxC Enrichment Ma
Slide 19: Nuclear Fuel Supply Chain – Current Status and Emerging Threats
For personal use only Nuclear Fuel Supply Chain – Current Status and Emerging Threats www.silex.com.au 19
Slide 20: Nuclear Fuel Production and Emerging Threats
Nuclear Fuel Production and Emerging Threats The Nuclear Fuel Supply Chain For personal use only Emerging Threats to the Global Nuclear Fuel Supply Chain: - Supply chain risks exposed by over-dependence on Russian-sourced nuclear fuel - Western supply - curtailments and under-investment in new resou
Slide 21: Russian Share of US Nuclear Fuel Requirements
Russian Share of US Nuclear Fuel Requirements For personal use only Russian Global Capacity1 Current US Imports of Russian Nuclear Fuel1,2 Uranium (U308) 14% ~14% Conversion 27% ~18% Enrichment (SWU) 46% ~20% 1. WNA and UxC various sources 2022 2. EIA, 2021 Uranium Marketing Annual Report, May 2022
Slide 22: Nuclear Fuel Supply Chain - Opportunities for GLE and the SILEX Technology
For personal use only Nuclear Fuel Supply Chain - Opportunities for GLE and the SILEX Technology www.silex.com.au 22
Slide 23: Potential Opportunities for GLE and the SILEX Technology
Potential Opportunities for GLE and the SILEX Technology For personal use only GLE has the unique potential to address the ‘Triple Opportunity’ emerging in the global nuclear fuel supply chain: 1) Uranium Production: Processing of depleted UF6 tails inventories with the SILEX technology to produce n
Slide 24: Nuclear Fuel Opportunities for GLE and the SILEX Technology
Nuclear Fuel Opportunities for GLE and the SILEX Technology For personal use only www.silex.com.au 24
Slide 25: The Paducah Laser Enrichment Facility (PLEF) Opportunities
For personal use only The Paducah Laser Enrichment Facility (PLEF) Opportunities www.silex.com.au 25
Slide 26: GLE's Multi-Purpose PLEF Project
GLE’s Multi-Purpose PLEF Project For personal use only The PLEF Triple Opportunity: Paducah Laser Enrichment Facility (PLEF) commercial project to deploy the SILEX technology in the US: • PLEF I - Opportunity for low-cost production of up to 5 million pounds natural grade uranium (as UF6) annually f
Slide 27: Nuclear Fuel Opportunities for GLE and the SILEX Technology
Nuclear Fuel Opportunities for GLE and the SILEX Technology For personal use only LEU PLEF III HALEU www.silex.com.au 27
Slide 28: The PLEF I Opportunity – Foundation Commercial Project
The PLEF I Opportunity – Foundation Commercial Project For personal use only PLEF I: Uranium Production from Legacy Tails Paducah, KY Potential Enrichment Plant Site • GLE’s flagship Paducah project aims to enrich depleted tails with SILEX technology to produce natural grade UF6 • Paducah project is
Slide 29: PLEF I: Uranium Production Opportunity
PLEF I: Uranium Production Opportunity (Natural UF6 production) For personal use only Target Commercial Akin to a ‘Tier 1’ Uranium Resource* Equivalent U3O8 Operation Date Based on low cost and Production Baseline: c. 2030 longevity of production Up to 5 million lbs p.a. for (with potential accelera
Slide 30: GLE / SILEX Technology Commercialisation Timelines
GLE / SILEX Technology Commercialisation Timelines1 For personal use only Baseline - GLE Commercialisation Timeline: PLEF Commercial Commercial Pilot Demonstration2 PLEF3 Feasibility and Licensing PLEF EPC4 Operations c. 2025 c. 2027 c. 2030 Potential Acceleration - GLE Commercialisation Timeline5:
Slide 31: SILEX Technology License and Cameco Equity Option
SILEX Technology License and Cameco Equity Option For personal use only Technology License: • GLE holds exclusive worldwide license for use of SILEX laser technology for uranium enrichment • License agreement includes US$20 million in payments to Silex triggered by commercialisation milestones • Per
Slide 32: Zero-Spin Silicon for Quantum Computing
For personal use only Zero-Spin Silicon for Quantum Computing www.silex.com.au 32
Slide 33: SILEX Zero-Spin Silicon Opportunity
SILEX Zero-Spin Silicon Opportunity For personal use only Global race to develop world’s first Quantum Computers (QCs) • QCs expected to be 1000’s of times more powerful than today’s conventional computers • QC anticipated to create new opportunities in medicine, AI, cybersecurity, finance, logistic
Slide 34: SILEX Project for ZS-Si production gathering momentum
SILEX Project for ZS-Si production gathering momentum For personal use only • Project partners SQC and UNSW part of the Federally funded ‘CQC2T Centre of Excellence’ ZS-Si for Silicon Quantum Computing – a world leader in silicon-based QC technology development • 3-year project cost ~$8m (includes p
Slide 35: SILEX Zero-Spin Silicon Production Opportunity
SILEX Zero-Spin Silicon Production Opportunity For personal use only Aim Commercial Pilot Production Establish capability for reliable Operation Date Commercial pilot scale and economic production of production of up to 5 kgs per high purity ZS-Si 2023 year, depending on demand Commercial ZS-Si Targ
Slide 36: Summary
For personal use only Summary www.silex.com.au 36
Slide 37: Summary
Summary For personal use only GLE’s path to market initially focused on the PLEF I project for cost effective production of natural uranium and significant value of the contained conversion component Consideration of accelerating deployment of SILEX uranium enrichment technology and GLE’s commercial
Slide 38: Thank you
For personal use only Thank you 38