Silex Systems Limited · ASX:SLX
Silex Systems — Shareholder Meeting (November 2018)
31 slides from Silex Systems's shareholder meeting presentation, Nov 30, 2018
Slide 1: Silex Systems Limited 2018 Annual General Meeting
For personal use only Silex Systems Limited 2018 Annual General Meeting (ASX: SLX) (OTCQX: SILXY) Dr Michael Goldsworthy CEO/Managing Director 30 November 2018
Slide 2: Forward Looking Statements
Forward Looking Statements For personal use only Silex Systems Limited (Silex) is a research and development company whose primary asset is the SILEX laser uranium enrichment technology, originally developed at the Company’s technology facility in Sydney, Australia. The SILEX technology was licensed
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 business activities. Except as required by law, no representation or
Slide 4: Silex Systems Limited
Silex Systems Limited For personal use only Silex Systems (Silex) is an advanced technology company focused on the commercialisation of its innovative SILEX laser enrichment technology 2018 AGM © Silex Systems Limited 4
Slide 5: The Year in Review
The Year in Review For personal use only • Efforts to restructure US-based SILEX technology Licensee, Global Laser Enrichment (GLE) stalled in June 2018 when Silex withdrew from a term sheet to acquire GE-Hitachi Nuclear Energy’s (GEH) 76% interest in GLE • In conjunction with key stakeholders, Sile
Slide 6: Our Current Strategy
Our Current Strategy For personal use only • Preserve value and optionality for future commercialisation of the SILEX technology in the key application of uranium enrichment • If possible, maintain a presence in the US, which remains the best target market for deployment of the SILEX uranium enrichm
Slide 7: Nuclear Power Growth and Market Outlook
For personal use only Nuclear Power Growth and Market Outlook
Slide 8: Drivers of Value for Nuclear Power
Drivers of Value for Nuclear Power For personal use only • Growing electricity demand globally • Proven, robust and reliable base-load generation • Nuclear’s ability to help decarbonise the power sector • Largest source of carbon-free power in the US, EU and many other advanced economies - key to cl
Slide 9: Nuclear Power Growth Remains Steady
9 Nuclear Power Growth Remains Steady For personal use only Shifts in Primary Energy Consumption by Fuel, 1970 - 2040 Projection for largest percentage * growth in share of global energy consumption to 2040 is in renewables, followed by natural gas Nuclear predicted to hold steady through 2040 a
Slide 10: Nuclear Power Growth
10 Nuclear Power Growth For personal use only (TOE = Tons of oil equivalent) Source: World Nuclear Association November 2018 2018 AGM | © Silex Systems Limited 10
Slide 11: The Future - Small Modular Reactors
The Future - Small Modular Reactors For personal use only Next generation of nuclear reactors - offer significant advantages over large conventional reactors Modular, smaller size (< 300 MWe) allows flexibility and competition with distributed generation such as renewables Designed-in load-follo
Slide 12: Uranium Market Focus
Uranium Market Focus For personal use only Uranium consumption by country worldwide Uranium production by country worldwide (in thousand metric tons) (in thousand metric tons) Source: Statistica, November 2018, for year 2016 • US market the largest user of nuclear fuel with 98 reactors • US uranium
Slide 13: Uranium Price – Early Signs of Recovery
Uranium Price – Early Signs of Recovery For personal use only • Production cuts by various miners – supply/demand more in balance • Investment funds entering market – buyers of excess demand • Utilities slowly returning to longer term contracting as legacy contracts expire • Uranium spot price movin
Slide 14: UxC Market Views: Uranium Market Outlook
UxC Market Views Uranium Market Outlook For personal use only Uranium Supply and Demand Forecast (Tails re-enrichment included) Source: UxC Uranium Market Outlook, Q3 2018 • Uranium supplies will remain excess to demand, under the mid-case scenario, until around 2027 • Potential volatility in projec
Slide 15: Uranium (U3O8) Demand Set to Increase
Uranium (U3O8) Demand Set to Increase For personal use only U3O8 Uncovered Demand Forecast Source: UxC Uranium Market Outlook, Q3 2018 Year • Utilities, especially US utilities, have purchased uranium in mid-term contracts to capture decreasing prices – however exposure remains in the long-term • Ut
Slide 16: UxC Market Views: Enrichment (SWU) Market Outlook
UxC Market Views Enrichment (SWU) Market Outlook For personal use only Base Case Enrichment Supply and Demand Forecast Source: UxC Enrichment Market Outlook, Q3 2018 • Forecast SWU demand continues to be weak and serviced by existing SWU suppliers • Despite the softening outlook for SWU demand, US u
Slide 17: Target Market for SILEX SWU
Target Market for SILEX SWU Uncovered SWU Demand For personal use only Base Case Uncovered Demand Forecast Year Source: UxC Enrichment Market Outlook, Q3 2018 • From mid-2020’s, forecast uncovered US SWU demand is in excess of 10MSWU per year • Opportunities for SILEX SWU may evolve from 2030’s depe
Slide 18: Overview of the SILEX Technology
For personal use only Overview of the SILEX Technology
Slide 19: Enrichment Technology Overview
Enrichment Technology Overview For personal use only SILEX - third generation laser enrichment technology • SILEX - Separation of Isotopes by Laser EXcitation • Highly selective laser (optical) excitation of 235UF6 to separate isotopes • Very high enrichment efficiency – expect relatively low SWU* c
Slide 20: SILEX and Nuclear Fuel Production
SILEX and Nuclear Fuel Production For personal use only • The SILEX technology can be utilized to produce: i) natural grade uranium via re-enrichment of tails inventories (Paducah project) ii) enriched uranium for use as fuel in nuclear power reactors (including HALEU) • Uranium production (~45%) an
Slide 21: SILEX Technology Commercialisation Program
SILEX Technology Commercialisation Program For personal use only • Commercialisation program has had over US$400 million invested to date • ‘Technology Validation’ successfully completed in 2013 at GLE’s Test Loop Facility in the US • Next key step in commercialisation program - ‘Economic and Engine
Slide 22: The SILEX Technology License Agreement and Paducah Opportunity
For personal use only The SILEX Technology License Agreement and Paducah Opportunity
Slide 23: SILEX License Agreement Overview
SILEX License Agreement Overview For personal use only Technology License Agreement with GLE – remains in force • Exclusive worldwide commercialisation and license agreement for the SILEX technology – with Global Laser Enrichment (GLE) signed in 2006 • Technology validation milestone May 2013 – trig
Slide 24: GLE's Tails Re-enrichment Opportunity
GLE’s Tails Re-enrichment Opportunity For personal use only • Agreement between GLE and DOE signed 10 November 2016 - underpins the Paducah Laser Enrichment Project • Re-enrichment of DOE tails stockpiles equivalent to a large, low cost uranium mine operating for at least 40 years • SILEX efficiency
Slide 25: Translucent Inc – cREO Technology
For personal use only Translucent Inc – cREO™ Technology
Slide 26: The Translucent – IQE Agreement
The Translucent – IQE Agreement For personal use only • Translucent’s innovative ‘Rare Earth Oxide’ (cREO™) technology purchased by UK-based IQE in March 2018 – payment of US$5 million received (in IQE shares) • IQE is the global leader in the design and manufacture of advanced semiconductor wafer p
Slide 27: cREO - IQE Development Program
cREO™ - IQE Development Program For personal use only • cREO™ technology was transferred to IQE’s Greensboro, North Carolina manufacturing facility in late 2015 for the completion of product development activities • Significant investment by IQE to progress development of cREO™ and complementary adv
Slide 28: cREO - IQE's Initial Applications
cREO™ - IQE’s Initial Applications For personal use only Power electronics applications Electric vehicle power Motor controllers for converters electrical appliances Lighting power converters DC/AC conversion (e.g. street lights) (e.g. solar inverters) Wireless communications Mobile phone chips Sour
Slide 29: Summary and Outlook
For personal use only Summary and Outlook
Slide 30: Summary and Outlook
Summary and Outlook For personal use only • Current focus is on preservation of value built up over the years with respect to the SILEX technology commercialisation program – in particular GLE’s Test Loop facility in the US • Future of the commercialisation program is dependent on the outcome of the
Slide 31: Thank you
For personal use only Thank you