Silex Systems Limited · ASX:SLX
Silex Systems — Investor Presentation (August 2022)
36 slides from Silex Systems's investor presentation, Aug 25, 2022
Slide 1: Investor Presentation
For personal use only Silex Systems Limited Investor Presentation (ASX: SLX) (OTCQX: SILXY) Dr Michael Goldsworthy CEO/Managing Director 25 August 2022 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 the 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: Investment Focus – ESG Credentials
Investment Focus – 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 – expected to he
Slide 5: Recent Highlights and Developments
Recent Highlights and Developments For personal use only Global Laser Enrichment (GLE) Commercialisation Project / SILEX Uranium Enrichment Technology: • GLE has unique potential to address (via the SILEX technology) the ‘Triple Opportunity’ emerging in the global nuclear fuel market: 1. Production
Slide 6: 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 6
Slide 7: Global Issues Transforming Nuclear Fuel Markets
Global Issues Transforming Nuclear Fuel 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) – key role for nuclear - Electrification of transport sector and clean hyd
Slide 8: Nuclear Industry Developments
Nuclear Industry Developments For personal use only • US: Inflation Reduction Act passed August 2022 - supporting nuclear power generation and domestic nuclear fuel supply including US$700 million funding for the DOE’s HALEU Availability Program • UK: in April 2022, announced plans to build 8 new nu
Slide 9: 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) 2. 14% ~14% Conversion 27% ~18% Enrichment (SWU)2. 39% ~20% 1. UxC, LLC various reports Q1 and Q2, 2022 2. EIA, 2021 Uranium Marketing Annual Repo
Slide 10: Potential Implications for GLE and the SILEX Technology
Potential Implications 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) Processing of depleted UF6 tails inventories to produce natural grade UF6 and help alleviate UF6 convers
Slide 11: 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 11
Slide 12: 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 12
Slide 13: The Paducah Opportunity
For personal use only The Paducah Opportunity www.silex.com.au 13
Slide 14: 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 15: The Paducah Opportunity – Foundation Commercial Project
The Paducah Opportunity – Foundation Commercial Project For personal use only The Paducah Laser Enrichment Facility (PLEF): 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
Slide 16: 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 ~5 million pounds natural grade uranium (as UF6) annually for aro
Slide 17: 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 18: 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 19: 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 20: Emerging Opportunity – HALEU for Small Modular Reactors
Emerging Opportunity – HALEU for Small Modular Reactors* (SMRs) For personal use only • Several next generation advanced SMR designs will use High Assay Low Enriched Uranium (HALEU) • SILEX technology may provide a flexible low cost alternative to produce HALEU for advanced SMRs • SMRs are modular,
Slide 21: Nuclear Power and the Nuclear Fuel Market Opportunity
For personal use only Nuclear Power and the Nuclear Fuel Market Opportunity www.silex.com.au 21
Slide 22: 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$70/MWHr Base Load Stability Nuclear Power Highest Capacity Factor Cl
Slide 23: Significant Nuclear Power Growth for Net Zero 2050
Significant Nuclear Power Growth for Net Zero 2050 For personal use only Nuclear Generation Scenarios World Nuclear Reactor Population TWh 7,000 Net Zero 226% 6,000 Accelerated 5,000 New Momentum 186% 4,000 127% 3,000 2,000 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Source: BP Energy Out
Slide 24: Uranium Market Outlook – Supply Shortage Forecast
Uranium Market Outlook – Supply Shortage Forecast For personal use only Mid-Case Uranium Supply and Demand Forecast Year Source: UxC Uranium Market Outlook, Q2 2022 • Uranium supply forecasted to be insufficient to meet demand from mid-2020’s www.silex.com.au 24
Slide 25: Key Components of Nuclear Fuel – Price Recovery
Key Components of Nuclear Fuel – Price Recovery For personal use only NA: North America NA: North America Source: UxC, LLC - Historical Price Data (in US$) • Significant market price increases across key components of nuclear fuel • Enrichment term price (SWU) increase of ~$70/SWU to ~$135/SWU in re
Slide 26: 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 15 August 2022) – up from a low o
Slide 27: 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 28: 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 29: SWU Price – Significant Price Increase
SWU Price – Significant Price Increase For personal use only Long-Term SWU Mid-Price Forecast 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 Market Outlook,
Slide 30: Zero-Spin Silicon for Quantum Computing
For personal use only Zero-Spin Silicon for Quantum Computing www.silex.com.au 30
Slide 31: 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 32: 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 33: SILEX Zero-Spin Silicon Production Opportunity
SILEX Zero-Spin Silicon Production Opportunity For personal use only Aim Commercial Pilot Production Establish a reliable and Operation Date Commercial pilot scale economic process for production of up to 5 kgs per production of high purity ZS-Si 2023 year, depending on demand Commercial ZS-Si Targe
Slide 34: Summary
For personal use only Summary www.silex.com.au 34
Slide 35: 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 36: Thank you
For personal use only Thank you 36