Silex Systems Limited · ASX:SLX
Silex Systems — Shareholder Meeting (November 2019)
29 slides from Silex Systems's shareholder meeting presentation, Nov 27, 2019
Slide 1: Silex Systems Limited 2019 Annual General Meeting
Silex Systems Limited 2019 Annual General Meeting (ASX: SLX) (OTCQX: SILXY) Dr Michael Goldsworthy CEO/Managing Director 27 November 2019 1
Slide 2: Forward Looking Statements
Forward Looking Statements 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 exclusively in 2006 t
Slide 3: Disclaimer
Disclaimer Silex Systems Limited (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 warranty, express
Slide 4: Silex is an advanced technology company focused on commercialisation of SILEX
Silex is an advanced technology company focused on the commercialisation of our innovative SILEX laser enrichment technology 4
Slide 5: Our Strategy
Our Strategy ❑ Secure the path for commercialisation of our core asset, the SILEX technology in the key application of uranium enrichment ❑ Strengthen our presence in the US, the primary target market for deployment of the SILEX technology ❑ Preserve the Paducah commercial plant opportunity and the
Slide 6: Highlights
Highlights ❑ Silex and Cameco signed a new term sheet in February 2019 outlining key terms for the restructure of SILEX technology Licensee, Global Laser Enrichment (GLE) involving the joint purchase of GE-Hitachi’s 76% interest in GLE ❑ The restructure of GLE is advancing towards finalisation of bi
Slide 7: SILEX Laser Uranium Enrichment Technology
SILEX Laser Uranium Enrichment Technology 7
Slide 8: Enrichment Technology Overview
Enrichment Technology Overview SILEX - third generation enrichment technology • SILEX - Separation of Isotopes by Laser EXcitation • Highly selective laser excitation of 235UF6 to separate isotopes • High enrichment efficiency – expect relatively low SWU* costs • Only known 3rd generation enrichment
Slide 9: SILEX and Nuclear Fuel Production
SILEX and Nuclear Fuel Production • 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%) and enrichment (~25%) c
Slide 10: SILEX Technology Commercialisation Program
SILEX Technology Commercialisation Program • Commercialisation program has had over US$400 million invested to date • Phase I - Technology Validation: completed in 2013 at GLE’s Test Loop Facility in the US • Phase II - Engineering and Economic Validation: will include demonstration of full-scale co
Slide 11: The GLE Restructure
Silex The GLE Restructure www.silex.com.au 11
Slide 12: The GLE Restructure Update
The GLE Restructure Update • Silex to acquire a 51% interest in GLE – Cameco to increase their interest from 24% to 49% • No upfront consideration – deferred annual purchase payments triggered after 1st year GLE generates US$50 million in revenues • A Site Lease will support GLE’s activities at the
Slide 13: The SILEX Technology License Agreement and the Paducah Opportunity
The SILEX Technology License Agreement and the Paducah Opportunity 13
Slide 14: SILEX License Agreement Overview
SILEX License Agreement Overview Technology License Agreement with GLE: • Exclusive worldwide commercialisation and license agreement for the SILEX technology – signed in 2006 • Technology validation milestone May 2013 – triggered US$15 million payment to Silex • Agreement provides for a perpetual r
Slide 15: Paducah Tails Re-enrichment Opportunity
Paducah Tails Re-enrichment Opportunity • Sales Agreement between GLE and DOE signed in November 2016 – for the sale of DOE tails inventories to GLE - underpins the Paducah Laser Enrichment Project • Re-enrichment of DOE tails stockpiles equivalent to a large, low cost uranium mine operating for sev
Slide 16: Nuclear Power Growth and Market Outlook
Nuclear Power Growth and Market Outlook 16
Slide 17: Benefits of Nuclear Power
Benefits of Nuclear Power ❑ Proven, robust and reliable base-load 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 per unit (LCOE of ar
Slide 18: Nuclear Power Growth
18 Nuclear Power Growth World Nuclear Reactor Population Source: World Nuclear Association November 2019 18 Silex Systems Limited | 2019 Annual General Meeting
Slide 19: The Future - Small Modular Reactors?
The Future - Small Modular Reactors? Next generation of nuclear reactors may offer significant advantages over large conventional reactors ❑ Modular, smaller size (< 300 MWe) allows flexibility and competition with distributed generation such as renewables ❑ Smaller upfront project investment – comp
Slide 20: US Uranium Market Focus
US Uranium Market Focus 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 is the largest user of nuclear fuel with 96 reactors with uranium requirements met predom
Slide 21: UxC Market Views
UxC Market Views Uranium Market Outlook Uranium Supply and Demand Forecast (Tails re-enrichment included) Source: UxC Uranium Market Outlook, Q3 2019 Year • Uranium supplies will remain excess to demand, under the mid-case scenario, until around 2027 • Secondary uranium supplies include production f
Slide 22: Uncovered Uranium Demand
Uncovered Uranium Demand Uranium Uncovered Demand Forecast Source: UxC Uranium Market Outlook, Q3 2019 Year • From 2025 onwards there is over 25 million pounds of uncovered annual uranium demand in the US 22 Silex Systems Limited | 2019 Annual General Meeting
Slide 23: Uranium Price – Early Signs of Term Price Recovery?
Uranium Price – Early Signs of Term Price Recovery? Uranium Mid Long-Term Base Price Forecast Source: UxC Uranium Market Outlook, Q3 2019 Year • UxC forecast the mid-case uranium price recovering to over US$50/lb from around 2026 • Recovery of the uranium market price is key to the viability of the
Slide 24: Translucent Inc cREO™ Technology
Translucent Inc cREO™ Technology 24
Slide 25: The Translucent – IQE Agreement
The Translucent – IQE Agreement ❑ Translucent’s innovative ‘Rare Earth Oxide’ (cREO™) technology purchased by UK-based IQE in 2018 – payment of US$5 million received in IQE shares ❑ IQE is the global leader in the design and manufacture of advanced semiconductor wafer products used in many of today’
Slide 26: cREO™ - IQE Development Program
cREO™ - IQE Development Program ❑ cREO™ technology commercialisation program being conducted at IQE’s Greensboro, NC manufacturing facility ❑ Significant investment by IQE to progress development of cREO™ and complementary advanced semiconductor materials technologies ❑ Strong progress has been made
Slide 27: Summary
Silex Summary
Slide 28: Summary
Summary • Current focus is on finalisation 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 acq
Slide 29: Thank you
dp Silex Thank you