Silex Systems Limited · ASX:SLX
Silex Systems — Shareholder Meeting (October 2023)
35 slides from Silex Systems's shareholder meeting presentation, Oct 13, 2023
Slide 1: 2023 Annual General Meeting
Silex Systems Limited For personal use only 2023 Annual General Meeting 13 October 2023 (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) Silex Systems Limited ABN 69 003 372 067 (Silex or Company) is a technology commercialisation company whose primary asset is the SILEX laser enrichment technology, originally developed at the Company’s
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 Medical isotope enrichment enrichment (silicon quantum computing) (new cancer therapies) (nuclear power) Our strategy is focused on extractin
Slide 4: Highlights of the Year in Review and Recent Developments
Highlights of the Year in Review and Recent Developments Global Laser Enrichment (GLE) Commercialisation Project / SILEX Uranium Enrichment Technology: • GLE is uniquely positioned to address, via the SILEX technology, the ‘Triple Opportunity’ that has emerged in the global nuclear fuel market • In
Slide 5: Investment Focus – Strong ESG Credentials
Investment Focus – Strong ESG Credentials 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 help solve global
Slide 6: Primary Focus on GLE Commercialisation
Primary Focus on GLE Commercialisation Uranium production and enrichment For personal use only (nuclear power) • SILEX uranium technology licencee Global Laser Enrichment (GLE) is progressing towards commercialisation • US-based GLE under JV ownership since 2021: 51% by Silex and 49% by Cameco Corpo
Slide 7: Significant Additional Opportunities
Significant Additional Opportunities For personal use only Silicon enrichment Medical isotope enrichment (silicon quantum computing) (new cancer therapies) • SILEX technology proven capable of producing highly enriched silicon • Newly commenced medical isotope project aiming to develop a process in
Slide 8: SILEX Uranium Enrichment Technology: Triple Opportunity for Silex and GLE
For personal use only SILEX Uranium Enrichment Technology: Triple Opportunity for Silex and GLE www.silex.com.au 8
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 Clean Energy For personal use only Net-Zero 2050 Low Cost 24/7 Reliability LCOE1 ~ US$70/MWHr Base Load Stability Nuclear Power Highest Capacity Factors Cl
Slide 10: Significant Nuclear Power Growth to achieve Net-Zero 2050
Significant Nuclear Power Growth to achieve Net-Zero 2050 Nuclear Generation Growth Scenarios Conventional Large-Scale Reactor Population TWh 7,000 For personal use only 6,000 209.6% Net Zero Accelerated 5,000 176.8% New Momentum 4,000 126.8% 3,000 2,000 2000 2005 2010 2015 2019 2020 2025 2030 2035
Slide 11: Nuclear Fuel Supply and Current Issues
Nuclear Fuel Supply and Current Issues The Nuclear Fuel Supply Chain For personal use only SILEX/GLE Opportunities Issues facing the Global Nuclear Fuel Supply Chain: - Western supply chain recent history - curtailments and under-investment in resources and production capability - Supply chain risks
Slide 12: US and EU Nuclear Fuel Requirements Supplied by Russia
US and EU Nuclear Fuel Requirements Supplied by Russia Russian Share of Global EU Nuclear Fuel US Nuclear Fuel Production Capacity1 Supplied by Russia2 Supplied by Russia1,3 Uranium (U308) ~14% ~20% ~14% For personal use only Conversion ~27% ~25% ~18% Enrichment (SWU) ~45% ~31% ~24% 1. WNA and UxC,
Slide 13: US Uranium and Enrichment Vulnerability
US Uranium and Enrichment Vulnerability US currently imports the vast majority of its nuclear fuel: - 95% of its uranium requirements (including ~14% from Russia) - 100% of its conversion requirements (including ~18% from Russia) For personal use only - 70% of its enriched uranium requirements (incl
Slide 14: Emerging Nuclear Fuel Supply Opportunities for GLE
Emerging Nuclear Fuel Supply Opportunities for GLE Uncovered Uranium Base Case Demand Million SWU Uncovered SWU Base Case Demand © UxC © UxC 250 90 225 80 200 70 For personal use only 175 60 150 50 125 Non-U.S. Utilities Non-U.S. Utilities 40 100 United States United States 30 75 Total Requirements
Slide 15: Recent Nuclear Fuel Market Price Trends
Recent Nuclear Fuel Market Price Trends Uranium Price Conversion Price Enrichment (SWU) Price US$/lb US$/kgU US$/SWU $80.00 $45.00 $160.00 U3O8 LT U3O8 NA NA LT Spot LT SWU Spot Conv Conv SWU $70.00 $40.00 $140.00 $35.00 $60.00 $120.00 $30.00 $50.00 $100.00 For personal use only $25.00 $40.00 $80.00
Slide 16: Acceleration of GLE's CY2023 Activities for SILEX technology
Acceleration of GLE’s CY2023 Activities for SILEX technology GLE has unique potential to address the ‘Triple Opportunity’ that has emerged in the global nuclear fuel supply chain: • GLE joint venture owners Silex and Cameco agreed to a CY2023 plan and budget that accelerates activities in the commer
Slide 17: GLE's Potential Timelines for Commercialisation of SILEX technology
GLE’s Potential Timelines for Commercialisation of SILEX technology1 Baseline - GLE Commercialisation Timeline: PLEF Commercial Commercial Pilot Demonstration2 PLEF3 Feasibility and Licensing PLEF EPC4 Operations For personal use only c. 2025 c. 2027 c. 2030+ Accelerated - GLE Commercialisation Time
Slide 18: Evolution of Enrichment Technology
Evolution of Enrichment Technology 1st Generation Technology 2nd Generation Technology 3rd Generation Technology For personal use only 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 19: Status of Commercial-Scale Pilot Demonstration Project
Status of Commercial-Scale Pilot Demonstration Project1 1) Laser Systems: - First commercial-scale Pilot Laser System (PLS1) module shipped and installed in Wilmington Test Loop late CY2022 - Beam Control System (BCS) shipped and installed Q2 CY2023 – currently operational with PLS1 PLS2 shipped to
Slide 20: GLE's PLEF Production Plant Opportunity
GLE’s PLEF Production Plant Opportunity The PLEF Triple Opportunity Paducah Laser Enrichment Facility (PLEF) – an opportunity to deploy the SILEX technology in the US: • PLEF UF6 Production: Production of up to 5 million pounds (equivalent) natural grade uranium (as UF6) annually for up to 30 years
Slide 21: GLE's PLEF Multi-purpose Production Plant Opportunity
GLE’s PLEF Multi-purpose Production Plant Opportunity For personal use only Source: GLE, Multi-purpose PLEF (conceptual) www.silex.com.au 21
Slide 22: GLE's PLEF Production Plant Opportunities
GLE’s PLEF Production Plant Opportunities For personal use only * * GLE PLEF Process streams – NUF6 and LEU Production * DUF6: Depleted UF6 www.silex.com.au 22
Slide 23: PLEF UF6 Production Opportunity
PLEF UF6 Production Opportunity (Natural UF6 production from tails) Akin to a ‘Tier 1’ Accelerated Uranium Resource* Equivalent U3O8 For personal use only Commercial Based on low cost and Production Operation Date^ longevity of production Up to 5 million lbs p.a. for 2028 (Silex estimate of all-in c
Slide 24: GLE Value Proposition for Silex
GLE Value Proposition for Silex* 1) GLE Equity – Minimum 25%: • Silex currently holds 51% – Cameco has a call Option to acquire an additional 26% at fair market value • Option window opened 1 February 2023 – closes 30 months after successful TRL-6 demonstration For personal use only • Either way, Si
Slide 25: Quantum Silicon for Quantum Computing – transition to commercial production
For personal use only Quantum Silicon for Quantum Computing – transition to commercial production www.silex.com.au 25
Slide 26: Quantum Computing, Artificial Intelligence and Quantum Silicon
Quantum Computing, Artificial Intelligence and Quantum Silicon Global race to develop world’s first Quantum Computers for Artificial Intelligence (AI): • Quantum Computing (QC) will be many times more powerful than today’s conventional computers and will power up the new age of Artificial Intelligen
Slide 27: Quantum Silicon (Q-Si) Production Project
Quantum Silicon (Q-Si) Production Project • New 3.5-year Quantum Silicon (Q-Si) Production Project announced on 17 August 2023 being undertaken with partners, Silicon Quantum Computing Pty Ltd (SQC) and UNSW Sydney (UNSW) • For personal use only New Project leverages the successful pilot demonstrati
Slide 28: Transition to Q-Si Production
Transition to Q-Si Production Q-Si Production Project will focus on four key elements: 1. Scaling of ZS-Si production capability to commercial-scale output (TRL-7, 8 and 9) Q-Si for Silicon Quantum Computing 2. Scaled-production of gaseous Q-Si product in the form of Quantum Silane For personal use
Slide 29: Q-Si Production Opportunity
Q-Si Production Opportunity Aim 2024 - 2026 2024 – Potential Commercial For personal use only Establish scaled, reliable, and Sample Sales economic production of ZS-Si Production Scale-up in two product formats: solid In the form of halo-silane to potential Q-Si customers Q-Si production of up to 10
Slide 30: Medical Isotope Separation Technology (MIST) Project
For personal use only Medical Isotope Separation Technology (MIST) Project www.silex.com.au 30
Slide 31: Medical Isotope Separation Technology (MIST) Project
Medical Isotope Separation Technology (MIST) Project Opportunity to become a critical material supplier for a revolution in nuclear medicine: • Lutetium-177 (Lu-177) radioisotope is a breakthrough development for the treatment of aggressive metastatic cancers – known as targeted beta therapy, which
Slide 32: MIST Project for Enriched Yb-176 (Precursor to Lu-177)
MIST Project for Enriched Yb-176 (Precursor to Lu-177) Three year stage-gated project aims to demonstrate technology for economic enrichment of Yb-176 MIST Project to be undertaken in three stages: • Stage 1 – Proof-of-Concept (POC) (CY2023) – TRL-3 For personal use only Lab-scale verification of ‘p
Slide 33: MIST Project: Yb-176
MIST Project: Yb-176 Initial Commercial Aim Project Outline Production For personal use only To establish process viability Stage 1: Proof of Concept - 2023 and production capability for Enriched Yb-176 (~99%) in 2026 Stage 2: Prototype Validation - 2024 economic production of (with potential to acc
Slide 34: Summary
Summary GLE’s path to market is underpinned by the PLEF UF6 project for cost effective production of natural uranium (in the form of UF6) and significant value of the contained conversion component Acceleration of the pilot demonstration project - targeting completion in mid-2024 - which if successf
Slide 35: Thank you
For personal use only Thank you www.silex.com.au 35