Silex Systems Limited · ASX:SLX
Silex Systems — Shareholder Meeting (November 2015)
22 slides from Silex Systems's shareholder meeting presentation, Nov 17, 2015
Slide 1: Silex Systems Limited 2015 Annual General Meeting
For personal use only Silex Systems Limited 2015 Annual General Meeting (ASX: SLX) (OTCQX: SILXY) Dr Michael Goldsworthy, CEO / Managing Director 17th November 2015
Slide 2: Forward Looking Statements
Forward Looking Statements For personal use only Silex Systems is a research and development Company whose assets are its proprietary rights in various technologies, including, but not limited to, the SILEX technology, Solar Systems technology and Translucent technology. The Company’s technologies a
Slide 3: Disclaimer
Disclaimer For personal use only Silex Systems Ltd (Silex) has prepared this presentation based on information available to it. The information in this presentation does not purport to be a complete description of Silex and/or its various business activities. Except as required by law, no representa
Slide 4: The Company
The Company For personal use only Silex Systems is an advanced technology company, primarily focused on the development and commercialisation of its innovative and potentially disruptive laser-based uranium enrichment technology 2015 AGM | © Silex Systems Limited 2015 4
Slide 5: Silex - The Year in Review
Silex - The Year in Review For personal use only • Strategic review undertaken by Silex Board in June 2014 resulting in full company restructure • Key decision – to return the primary focus of the company to the development and commercialisation of our foundation technology – the SILEX laser-based u
Slide 6: The Translucent – IQE Agreement
The Translucent – IQE Agreement For personal use only • Translucent, a Silex subsidiary (99% ownership) based in California, USA, successfully developed a unique set of advanced semiconductor materials known as ‘Rare Earth Oxides’ (REO’s) • The REO’s have potential application to key semiconductor g
Slide 7: SILEX Laser Uranium Enrichment Technology
For personal use only SILEX Laser Uranium Enrichment Technology
Slide 8: GLE Restructure - Overview
GLE Restructure - Overview For personal use only • SILEX Technology Licensee GE-Hitachi Global Laser Enrichment (GLE) announced a major restructure in July 2014, slowing the commercialisation project in response to adverse conditions in nuclear fuel markets (Fukushima effect) • The GLE restructure r
Slide 9: Advantages of the SILEX Technology
Advantages of the SILEX Technology For personal use only • Enrichment is the most difficult and costly step in making nuclear fuel for power reactors – around 35% to 40% of total fuel cost based on current market prices • All enrichment today performed by gas centrifuge technology developed initiall
Slide 10: Comparison of Enrichment Technologies
Comparison of Enrichment Technologies For personal use only (1) This number is Classified – the range indicated is dictated by the technology Classification Guide (2) Approximately 14% supplied from GDP inventory, RepU/MOX and other sources (UxC Enrichment Market Outlook Q3, 2015) 2015 AGM | © Silex
Slide 11: SILEX Process Flow Diagram
SILEX Process Flow Diagram For personal use only UF6 Feed UF6 Handling & Storage Enriched Product Laser Systems UF6 Withdrawal UF6 Feed System Separator Systems Systems Carrier Gas Separator Support CG Feed & Storage CG Recovery System Systems Depleted Tails Balance of Plant (Plant Support Systems)
Slide 12: Commercialisation and License Agreement
Commercialisation and License Agreement For personal use only Perpetual Royalty Agreement with Global Laser Enrichment (GLE) • Exclusive worldwide commercialisation and license agreement with Global Laser Enrichment (GLE) for the SILEX Technology – signed in 2006 • Phase I milestone completed in May
Slide 13: GLE's Phased Approach to Commercialisation
GLE’s Phased Approach to Commercialisation For personal use only Commercial Plant Options • Plans include possible enrichment plant of up to 6MSWU in Wilmington, NC (US NRC construction & operating License received in 2012) • Additional opportunity for a commercial plant in Paducah, KY – subject to
Slide 14: Paducah Enrichment Plant Opportunity
Paducah Enrichment Plant Opportunity For personal use only • Closure of last 1st generation gaseous diffusion plant in May 2013 – led to US Department of Energy (DOE) bid process for future operations • GLE submitted a proposal to the DOE in August 2013 involving construction of a SILEX-based laser
Slide 15: Nuclear Power Market Outlook
Nuclear Power Market Outlook For personal use only • Potential for significant increase in nuclear power capacity over the next two decades • Energy security and climate change are two key drivers for nuclear power deployment Nuclear plant forecasts to 2030* Key Statistics Country 2015 2030 11 per
Slide 16: Potential Market Recovery Drivers
Potential Market Recovery Drivers For personal use only Economics • Nuclear power continues to prove economically competitive - costs of electricity from nuclear generation comparable to coal and gas in most countries and less than (subsidised) renewables Energy Security • Nuclear power will remain
Slide 17: Uranium Enrichment Market Outlook
Uranium Enrichment Market Outlook For personal use only Short Term Market Outlook – ‘Difficult’ • Short term market likely to remain depressed due to impact of Japanese industry shutdown • Japanese reactor restarts slower than anticipated, with first 2 units at Sendai now back online • Uranium marke
Slide 18: Enrichment Market Outlook
Enrichment Market Outlook For personal use only Source: UxC Enrichment Market Outlook, Q3 2015 • World market supply/demand balance could tighten from around 2025 on current trends (left hand graph) • Rest of World (ROW) (excluding China and Russia) indicates market tightening from around 2022 (righ
Slide 19: Enrichment Market Outlook
Enrichment Market Outlook For personal use only Source: UxC Enrichment Market Outlook, Q3 2015 • ROW view shows market back into balance around 2022 and going into supply shortage around 2025 • SWU/Enriched Uranium Product Inventories also begin to phase out by 2025/2026 and are consumed by 2028 • B
Slide 20: Uranium Market Outlook
Uranium Market Outlook For personal use only Million pounds U3O8 © UxC 375 350 325 URM World Market 300 Demand Range 275 250 225 Secondary (Tails re-enrichment) Supplies 200 Secondary 175 Supplies 150 New 125 Production 100 Existing 75 Production 50 25 0 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22
Slide 21: Summary
Summary For personal use only • The Company is nearing completion of a major restructure, resulting in a significant reduction in cash burn going forward (current cash reserves ~$50m) • SILEX Technology remains under exclusive licence to Global Laser Enrichment (GLE) - a business venture of GE (51%)
Slide 22: Thank you
For personal use only Thank you