Silex Systems Limited · ASX:SLX

Silex Systems — Investor Presentation (August 2023)

33 slides from Silex Systems's investor presentation, Aug 23, 2023

  1. Slide 1: Silex Systems Limited Investor Presentation

    Silex Systems Limited Investor Presentation (ASX: SLX) (OTCQX: SILXY) Dr Michael Goldsworthy CEO/Managing Director 23 August 2023 www.silex.com.au 1

  2. 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

  3. Slide 3: Our Mission: to commercialise the unique SILEX laser enrichment technology

    Our Mission: to commercialise the unique SILEX laser enrichment technology for application to: Uranium production and Silicon enrichment Medical isotope enrichment enrichment (silicon quantum computing) (new cancer therapies) (nuclear power) Our strategy is focused on extracting maximum value from o

  4. Slide 4: Recent Highlights and Developments

    Recent Highlights and 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 February 2023, GLE’s o

  5. 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

  6. Slide 6: Primary Focus on GLE Commercialisation

    Primary Focus on GLE Commercialisation Uranium production and enrichment (nuclear power) • SILEX uranium technology licencee Global Laser Enrichment (GLE) is actively progressing towards commercialisation • US-based licensee GLE under JV ownership since 2021: 51% by Silex and 49% by Cameco Corporati

  7. Slide 7: Significant Additional Opportunities

    Significant Additional Opportunities 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 the form of Zero-Spin

  8. Slide 8: SILEX Uranium Enrichment Technology: Triple Opportunity for Silex and GLE

    SILEX Uranium Enrichment Technology: Triple Opportunity for Silex and GLE www.silex.com.au 8

  9. 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 Net-Zero 2050 Low Cost 24/7 Reliability LCOE1 ~ US$70/MWHr Base Load Stability Nuclear Power Highest Capacity Factors Clean Electricity for (>

  10. 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 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 2040 2045 2050 Source:

  11. Slide 11: Nuclear Fuel Supply and Current Threats

    Nuclear Fuel Supply and Current Threats The Nuclear Fuel Supply Chain SILEX/GLE Opportunities Current Threats to the Global Nuclear Fuel Supply Chain: - Supply chain risks exposed by over-dependence on Russian-sourced nuclear fuel - Western supply – curtailments and under-investment in resources and

  12. 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% Conversion ~27% ~25% ~18% Enrichment (SWU) ~45% ~31% ~24% 1. WNA and UxC, various sources 2023 2

  13. 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) - 70% of its enriched uranium requirements (including ~24% from Russia

  14. Slide 14: Emerging Nuclear Fuel Supply Opportunities for GLE

    Emerging Nuclear Fuel Supply Opportunities for GLE Million SWU Uncovered SWU Base Case Demand © UxC Uncovered Uranium Base Case Demand © UxC 250 90 225 80 200 70 175 60 150 50 125 Non-U.S. Utilities 40 Non-U.S. Utilities 100 United States United States Total Requirements 30 75 Total Requirements 20

  15. Slide 15: Recent Nuclear Fuel Market Price Trends

    Recent Nuclear Fuel Market Price Trends Uranium Price US$/kgU Conversion Price US$/SWU Enrichment (SWU) Price US$/lb $70.00 $45.00 $160.00 U3O8 LT U3O8 NA NA LT Spot LT SWU Spot Conv Conv SWU $40.00 $140.00 $60.00 $35.00 $120.00 $50.00 $30.00 $100.00 $40.00 $25.00 $80.00 $30.00 $20.00 $60.00 $15.00

  16. 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 (51%) and Cameco (49%) have agreed to a plan and budget for CY2023 that accelerates act

  17. 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 c. 2025 c. 2027 c. 2030+ Potential Acceleration - GLE Commercialisation Timeline5: Comm

  18. Slide 18: GLE’s PLEF Production Plant Opportunity

    GLE’s PLEF Production Plant Opportunity The PLEF Triple Opportunity Paducah Laser Enrichment Facility (PLEF) commercial project 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 year

  19. Slide 19: GLE’s PLEF Multi-purpose Production Plant Opportunity

    GLE’s PLEF Multi-purpose Production Plant Opportunity Source: GLE, multi-purpose PLEF (conceptual) www.silex.com.au 19

  20. Slide 20: GLE’s PLEF Production Plant Opportunity

    GLE’s PLEF Production Plant Opportunity * GLE PLEF Process streams – NUF6 and LEU Production * DUF6: Depleted UF6 www.silex.com.au 20

  21. Slide 21: PLEF UF6 Production Opportunity Akin to a ‘Tier 1’

    PLEF UF6 Production Opportunity (Natural UF6 production from tails) Target Commercial Akin to a ‘Tier 1’ Uranium Resource* Equivalent U3O8 Operation Date Based on low cost and Production Baseline: c. 2030 longevity of production Up to 5 million lbs p.a. for (with potential acceleration by approximat

  22. Slide 22: 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 26% at fair market value • Option window opened 1 February 2023 – closes 30 months after successful TRL-6 demonstration • Either way, Silex has a significant equity stake i

  23. Slide 23: Quantum Silicon for Quantum Computing

    Quantum Silicon for Quantum Computing – transition to commercial production www.silex.com.au 23

  24. Slide 24: 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) • Project awarded $5.1m in funding from the Defence Trailblazer for Concept to

  25. Slide 25: 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, & 9) 2. Scaled-production of gaseous Q-Si product in the form of Quantum Silane 3. Production of solid Q-Si products in the form of Q

  26. Slide 26: Quantum Computing (QC), Artificial Intelligence (AI) and Q-Si

    Quantum Computing (QC), Artificial Intelligence (AI) and Q-Si 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 Intelligenc

  27. Slide 27: Q-Si Production Opportunity

    Q-Si Production Opportunity Aim 2024 - 2026 2024 – Potential Commercial 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 10kg Q-Si and gaseous Q-

  28. Slide 28: Medical Isotope Separation Technology (MIST) Project

    Medical Isotope Separation Technology (MIST) Project www.silex.com.au 28

  29. Slide 29: 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

  30. Slide 30: 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 Lab-scale verification of ‘proof-of-concept’ in a

  31. Slide 31: MIST Project: Yb-176

    MIST Project: Yb-176 Initial Commercial Aim Project Outline Production To establish process viability Stage 1: Proof of Concept - 2023 Enriched Yb-176 (~99%) in 2026 and production capability for Stage 2: Prototype validation - 2024 economic production of (with potential to accelerate Stage 3: Pilot

  32. Slide 32: SILEX Technology Summary

    SILEX Technology 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 CY2023 activities in the pilot demonstration project creates opportun

  33. Slide 33: Thank you

    Mp Silex Thank you

Silex Systems — Investor Presentation (August 2023) on 6ix