Silex Systems Limited · ASX:SLX
Silex Systems — Investor Presentation (February 2006)
26 slides from Silex Systems's investor presentation, Feb 9, 2006
Slide 1: Inquiry into Developing Australia's Non-fossil Fuel Energy
“Industry and Resources 6 February 2006 Inquiry into Developing Australia’s Non-fossil Fuel Energy Case Study: The Strategic importance of Australia’s Uranium Resources Dr. Michael Goldsworthy, CEO House of Reps Presentation 09020@ihandavat
Slide 2: Forward looking statements
Forward looking statements Silex ig a research and development company whose assets are its proprietary rights in technologies, including, but not limited to, the SILEX technology, Translucent technology and Fiberbyte technology. The company’s technologies are in the development stage and have not b
Slide 3: Our Mission
OUR MISSION : to become a world leader in - » Isotopically Enriched Materials » Uranium » Silicon » Advanced Semiconductor Materials » Optical Silicon Interconnects » SOI and ‘High-k’ substrates
Slide 4: Australian listed technology company (SLX:ASX), est. 1988
Australian listed technology company (SLX:ASX), est. 1988. Market Cap ~ $400M Shareholders ~5000. Historical background — refer to website (www.silex.com.au). Employees ~ 40, including 12 PhD’s, 11 Engineers Several technologies nearing commercialisation Seeking Uranium Enrichment partner for scale-
Slide 5: Silex Technology and Semiconductor Technology Divisions
1) SILEX TECHNOLOGY DIVISION (Sydney) Uranium Enrichment Estimated Total Market Size USS (Medical Diagnostic Isotcpes) ~ $5,000M (Nuclear Fuel Industry) $6, Silicon Enrichment > (Semiconductor Wafer Industry) $1,000M Carbon and Oxygen Enrichment > $100M 2) SEMICONDUCTOR TECHNOLOGY DIVISION Optical S
Slide 6: Global electricity demand to double by 2030
Global electricity demand to double by 2030 ~ Driven by industrial modernisation of China and India The vast majority of this growth will be supplied by COAL COAL is driving up atrnospheric CO, levels: ~ 280ppm (pre-industrial 1850) — 370ppm (2000) CO, is driving Global Climate Change: the greenhous
Slide 7: Decrease Fossil Fuel consumption and CO2 levels
Decrease Fossil Fuel consumption and CO, levels increase reliance on Nuclear Power increase reliance on Renewable Energies (Wind, Solar etc). Accelerate the Hydrogen Economy (via nuclear power). improve Energy Efficiency An integrated mix of nuclear, renewables, hydrogen and energy efficiency measur
Slide 8: Vast coal reserves, major global polluter
« Vast coal reserves —» major global polluter -+ need ‘clean coal’ technologies *« Vast uranium reserves —» withheld by political interference — need to accelerate resource development « Renewables and hydrogen — minimal political response —» need to accelerate development Conclusions: - Australian
Slide 9: A Global Nuclear Power Renaissance is Underway
A Global Nuclear Power Renaissance is Underway: = Currently 17% of world’s electricity supplied by nuclear power # 440+ reactors currently operating # 70+ being built / planned + accelerated development in Asia a No greenhouse gas emissions —» will not impact global climate # Governments and Utiliti
Slide 10: Uranium Enrichment and Non-Proliferation
Uranium Enrichment and Non-Proliferation Nuclear Power Reactor Safety * Highest priority — world’s Best Practice *» Reactor Technology has matured * 3 and 4 generation reactors ~ failsafe and human-proof Nuclear Waste Remediation * Technology has matured — borosilicate glass and Synroc * Permanent i
Slide 11: International security and SILEX safeguards
international: ¢ Significant international security issue (Iran, Nth Korea) * Question of access to uranium enrichment technology ~ US Government Proliferation Security Initiative (PSI). SILEX: * Laser technology far more complex and sophisticated than centrifuge. « Australia and US - best equipped
Slide 12: Nuclear fuel cycle
0.7% UES 59.3% W238 36% URS Uranium Mining Conversionto UFGé = Enrichment Used in Reactor Greate Steam Drive Turbine Make Electricity
Slide 13: Nuclear Fuel Economics
Nuclear Fuel Economics: # Nuclear fuel costs are ~30% of total costs of nuclear power. # Nuclear fuel costs - approximate breakdown: Uranium Ore ~ 35% UF, Conversion ~ 5% Enrichment ~ 40% Fuel Fabrication ~ 20% » As uranium prices go up - demand on enrichment increases (Le. increasing the level of e
Slide 14: Enrichment demand scenarios (SWU)
theusang swu 120000 ‘002 20000 4. B00co ' agono + 2000 Pe KEP PPPS Se See eK KS KK EK —e Lower Scenetio 4H Reference Scanaro Upper Scenaric © § ? SPSS
Slide 15: Estimated Enrichment Market Value
US $Billions 119.5 - Upper 18 Fai 16.9 - Reference 16 145 14.5 - Lower 14 12.6 10.7 4 > Potential Australian share: ~$3bn+ ~$4bn+ ~$6bn+ is] 2005 2010 2015 2020 Estimated Enrichment Market Value 2025 2030
Slide 16: Supply & Demand Forecasts
Supply & Demand Forecasts . 2005 2010 2015 MSWU % MSWU % MSWU % USEC SUPPL DEMAND - DEFICIT (Estimates extracted from: W/NA/NEI Fuel Cycie Conference & Market Survey Sources)
Slide 17: SILEX vs centrifuge and gas diffusion
SILEX CENTRIFUGE GAS DIFFUSION STATUS 34 Generation (1) Classified — more detailed information not available _(2) Indicative estimate only — needs to be verified in Pilot Program. Y 2.4 Generation DEVELOPED 2000's 1940's 1940's PROCESS Laser Excitation Mechanical Mechanical (‘centrifugal force’) (br
Slide 18: Key features of the SILEX Technology
Key features of the SILEX Technology » very low energy requirements and low capital costs. » UF, process — no materials engineering issues. » viable engineering concepts » laser technology can be industrialised SILEX Technology potentially has a clear commercial advantage over centrifuge » The only
Slide 19: Enrichment Technology
Enrichment Technology 1988 Concept, Theory, Initial Experimental activities 1992 Proof of Concept demonstration with stable isotopes (Mo, Ci, C etc) 1994 Proof of Concept demonstration with Uranium (lab scale) 1996 USEC Agreement signed ~ uranium project development partner. 2000 Uranium Project Mil
Slide 20: Status of the Uranium Project
Status of the Uranium Project: » ‘Direct Measurement’ Enrichment Program successfully completed mid - 2005. * Classified Due Diligence by US companies delayed 6 months by US Gov't. * Classified Due Diligence evaluations completed in January. * Several companies (US and non-US) now in negotiations wi
Slide 21: Scale-up & Optimisation / Test Loop
Scale-up & Optimisation / Test Loop Pilot Plant Design & Licence Pilot Plant Construction Pilot Plant Testing Commercial Plant Design & Licence Commercial Plant Construction IMSWU Commercial Plant Start Up
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Slide 24: Lucas Heights Laboratories: DM Laser Facility
Slide 25: A unique Australian company
A unique Australian company developing technology and advanced materials for the 215 Century
Slide 26: References/Sources
References/Sources: 1) 2) 3) 4) 5) 8) ?) WWNA, 2005, The Global Nuclear Fuel Market Smil. V, 2003, Energy at the Crossroads, Cambridge MA, MIT Press. Barry.R & Chorley.R, 2003, 8" Edition, Atmosphere, Weather and Climate, Routledge, UK Deffeyes.K, 2005, 1‘ Edition, Beyond Oil, The view from Hubbert’
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