Silex Systems Limited · ASX:SLX
Silex Systems — Shareholder Meeting (October 2020)
37 slides from Silex Systems's shareholder meeting presentation, Oct 15, 2020
Slide 1: Silex Systems Limited 2020 Annual General Meeting
Silex Systems Limited 2020 Annual General Meeting (ASX: SLX) (OTCQX: SILXY) Dr Michael Goldsworthy CEO/Managing Director 15 October 2020 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) is a research and development company whose primary asset is the SILEX laser enrichment technology, originally developed at the Company’s technology faci
Slide 3: Disclaimer
Disclaimer Silex Systems Limited (Silex) has prepared this presentation based on information available to it as at the date of this presentation. The information in this presentation does not purport to be a complete description of Silex and/or its business activities and is for information purposes
Slide 4: Silex is a platform technology company
Silex is a platform technology company focused on the commercialisation of our innovative SILEX laser enrichment technology across multiple markets 4
Slide 5: The Silex Business Case
The Silex Business Case Two technologies being commercialised: 1) SILEX Laser Isotope Separation Technology 2) cREO™ Advanced Semiconductor Material Technology Three commercial applications under development: 1) SILEX Uranium Enrichment Project with US-based Global Laser Enrichment (GLE) 2) SILEX Ze
Slide 6: Target Industry Sectors
Target Industry Sectors Target markets fall within significant global industries Nuclear Fuel Quantum 5G Front End Uranium market Computing High frequency filters ~US$7bn (est. 2022) Potential market and connectivity Enrichment market ~$50bn (by 2040) ~US$3bn (~2025) ~US$3bn (est. 2022) (Source: CSI
Slide 7: Highlights of FY2020
Highlights of FY2020 ❑ Silex and Cameco signed a binding agreement in December 2019 for the restructure of SILEX technology licensee – GLE, involving the joint purchase of GE-Hitachi’s 76% interest in GLE ❑ Subject to obtaining US government approvals, completion of the restructure will result in Si
Slide 8: SILEX 3rd Generation Uranium Enrichment Technology
SILEX 3rd Generation Uranium Enrichment Technology 8
Slide 9: Opportunity – SILEX uranium enrichment technology
Opportunity – SILEX uranium enrichment technology Commercialisation of the SILEX technology: Opportunity to develop the largest uranium resource in the US ❑ SILEX uranium enrichment technology being commercialised with US-based licensee GLE ❑ Paducah KY, tails enrichment project – potential to produ
Slide 10: Enrichment Technology Overview
Enrichment Technology Overview ❑ Most nuclear reactors require an enriched form of uranium fuel to enable sustainable reactions ❑ Enrichment: 235UF6 assay increased from 0.7% (natural) to ~4% (low enriched uranium – LEU) ❑ SILEX - Separation of Isotopes by Laser Excitation - laser enrichment (third
Slide 11: SILEX and Nuclear Fuel Production
SILEX and Nuclear Fuel Production ❑ The SILEX technology provides GLE with multiple opportunities in the production of nuclear fuel: ❑ produce natural grade uranium via enrichment of depleted tails inventories (Paducah project) ❑ capture the value of conversion contained in the depleted UF6 tails ma
Slide 12: SILEX Technology Commercialisation Program
SILEX Technology Commercialisation Program ❑ Phase 1: Technology Validation: completed at GLE’s Test Loop Facility in the US ❑ Phase 2: Engineering and Economic Validation: includes full-scale pilot demonstration ❑ Phase 3: Paducah commercial project for uranium production – first SILEX production p
Slide 13: The GLE Restructure
Silex The GLE Restructure www.silex.com.au 13
Slide 14: The GLE Restructure
The GLE Restructure ❑ Purchase agreement for GE-Hitachi’s 76% interest in GLE executed in December 2019 ❑ Silex to acquire a 51% interest in GLE – Cameco to increase their interest from 24% to 49% ❑ No upfront consideration – deferred annual purchase payments (4 x US$5 million) triggered after 1st y
Slide 15: The SILEX Uranium Enrichment Technology Commercial Opportunities
The SILEX Uranium Enrichment Technology Commercial Opportunities 15
Slide 16: 1) SILEX License and Royalty Agreement
1) SILEX License and Royalty Agreement ❑ Exclusive worldwide commercialisation and license agreement for the SILEX laser uranium enrichment technology with GLE ❑ Agreement provides for a perpetual royalty and a further US$20 million in payments triggered by commercialisation milestones ❑ Royalty str
Slide 17: 2) The Paducah Opportunity – a 'Tier 1' Uranium Project
2) The Paducah Opportunity – a ‘Tier 1’ Uranium Project ❑ Sales Agreement between GLE and DOE amended in 2020 for the sale of depleted UF6 tails inventories to GLE ❑ Agreement underpins the Paducah Laser Enrichment Facility (PLEF) – first commercial opportunity for GLE ❑ Enrichment of depleted DOE t
Slide 18: 3) Emerging Opportunity: Small Modular Reactors (SMRs)
3) Emerging Opportunity: Small Modular Reactors (SMRs) Next generation of nuclear reactors may create a significant opportunity for the SILEX technology ❑ Modular, smaller size (50 MWe to 300 MWe) allows greater flexibility in deployment ❑ Potentially competitive with distributed generation (such as
Slide 19: Nuclear Power Growth and Market Outlook
Nuclear Power Growth and Market Outlook 19
Slide 20: Benefits of Nuclear Power
Benefits of Nuclear Power ❑ Proven, robust and reliable base-load (24/7) electricity generation ❑ Largest source of carbon-free power in the US, EU and developing economies - key to climate change mitigation ❑ Affordable and reliable electricity to a growing global population – low generation cost (
Slide 21: Nuclear Power Growth
21 Nuclear Power Growth World Nuclear Reactor Population Source: World Nuclear Association September 2020 21 Silex Systems Limited | 2020 Annual General Meeting
Slide 22: US Nuclear Industry Review
US Nuclear Industry Review ❑ Growing concerns the US has fallen behind China, Russia and other state-owned enterprises in nuclear technology ❑ US nuclear fuel supply is currently dominated by foreign imports for uranium, and foreign enrichment providers ❑ Nuclear Fuel Working Group appointed by the
Slide 23: US Uranium Market Focus
US Uranium Market Focus Uranium purchased for US nuclear power reactors, 2010 – 2019 Million pounds U3O8 Source: U.S. EIA Uranium Marketing Annual Report, Released May 2020 ❑ US is the largest user of nuclear fuel with 95 operating reactors - but with uranium requirements met predominately by import
Slide 24: Uncovered Uranium Requirements
Uncovered Uranium Requirements Covered Uncovered Year Source: UxC Uranium Market Outlook, Q3 2020 ❑ From 2025 onwards - over 25 million pounds of uncovered annual uranium requirements in the US 24 Silex Systems Limited | 2020 Annual General Meeting
Slide 25: Global Uranium Market Outlook
Global Uranium Market Outlook Mid-Case Uranium Supply and Demand Forecast Year Source: UxC Uranium Market Outlook, Q3 2020 ❑ Uranium supplies will remain excess to demand, under the mid-case scenario, until around 2025 25 Silex Systems Limited | 2020 Annual General Meeting
Slide 26: Uranium Price – Near Term Price Recovery Forecasted
Uranium Price – Near Term Price Recovery Forecasted Uranium Long-Term Base Price Forecast Year Source: UxC Uranium Market Outlook, Q3 2020 ❑ UxC forecast the mid-case uranium price recovering to over US$55/lb from around 2025 ❑ Spot price fell to ~US$18/lb in 2016 – now around US$30/lb 26 Silex Syst
Slide 27: Zero-Spin Silicon Project for Quantum Computing
Zero-Spin Silicon Project for Quantum Computing 27
Slide 28: Opportunity – ZS-Si: Silicon Enrichment Project
Opportunity – ZS-Si: Silicon Enrichment Project Commercialisation of the SILEX technology for Silicon Enrichment: Opportunity to produce the key enabling material for silicon-based quantum computing ❑ SILEX Zero-Spin Silicon (ZS-Si) Project with UNSW Sydney and Silicon Quantum Computing ❑ Potential
Slide 29: ZS-Si: Silicon Enrichment Project for Quantum Computing
ZS-Si: Silicon Enrichment Project for Quantum Computing ❑ ZS-Si project launched December 2019 in collaboration with Silicon Quantum Computing Pty Ltd (SQC) and UNSW Sydney ❑ ZS-Si is the key enabling material for silicon-based quantum processors and is required to support the development and antici
Slide 30: ZS-Si: Silicon Enrichment Project for Quantum Computing
ZS-Si: Silicon Enrichment Project for Quantum Computing ❑ Project aim is to provide a secure supply of ZS-Si in support of efforts by SQC and UNSW to commercialise silicon quantum computing technology ❑ The project, which is expected to be completed at end of CY2022, is supported by a $3 million Fed
Slide 31: Overview of Global QC Technology Development
Overview of Global QC Technology Development Several quantum technologies being pursued for QC qubit devices, including: 1) Doped ZS-Si Spin – stable, fast, path to scalable architecture identified (SQC / UNSW) 2) Silicon Quantum Dot – stable, path to scalable architecture identified 3) Superconduct
Slide 32: cREO™ Technology
Translucent Inc cREO™ Technology 32
Slide 33: The Translucent – IQE Agreement
The Translucent – IQE Agreement ❑ Silex subsidiary Translucent’s ‘Rare Earth Oxide’ (cREO™) technology purchased by UK-based IQE in 2018 with payment of US$5 million (in IQE shares) ❑ IQE is global leader in the supply of advanced semiconductor wafer products used in many of today’s semiconductor de
Slide 34: cREO™ - IQE Development Program
cREO™ - IQE Development Program ❑ cREO™ technology commercialisation program being conducted at IQE’s Greensboro NC, US manufacturing facility ❑ Continued investment by IQE to progress commercialisation of cREO™ advanced semiconductor material technologies ❑ IQE is making progress in the development
Slide 35: Summary
Silex Summary
Slide 36: Summary
Summary ❑ Current focus is on closing of the GLE restructure and continuation of the SILEX technology commercialisation project at GLE’s facility in the US and Silex’s facility in Sydney ❑ Successful completion of the GLE restructure, subject to US government approvals, will result in Silex acquirin
Slide 37: Thank you
dp Silex Thank you