Silex Systems Limited · ASX:SLX
Silex Systems — Investor Presentation (August 2020)
34 slides from Silex Systems's investor presentation, Aug 27, 2020
Slide 1: Silex Systems Limited Investor Presentation
For personal use only Silex Systems Limited Investor Presentation (ASX: SLX) (OTCQX: SILXY) Dr Michael Goldsworthy CEO/Managing Director 27 August 2020 1
Slide 2: Forward Looking Statements and Risk Factors
Forward Looking Statements and Risk Factors For personal use only 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 Com
Slide 3: Disclaimer
Disclaimer For personal use only 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 fo
Slide 4: Silex is a platform technology company
For personal use only 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 For personal use only 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 Enrich
Slide 6: Target Industry Sectors
Target Industry Sectors For personal use only Target markets fall within significant global industries Nuclear Fuel 5G Front End Quantum Uranium market Computing RF and Connectivity ~ US$7bn (est. 2022) ~US$3bn (~2025) Potential market Enrichment market ~ US$1bn (by 2025) (Note: cREO™ based products
Slide 7: Our Strategy
Our Strategy For personal use only ❑ Secure the commercialisation path in the US for our core asset - the SILEX technology - in the primary application of uranium enrichment ❑ Increase our involvement in the SILEX commercialisation program through the purchase of a majority interest in GLE – the exc
Slide 8: Highlights of FY2020
Highlights of FY2020 For personal use only ❑ 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 restruc
Slide 9: SILEX 3rd Generation Uranium Enrichment Technology
For personal use only SILEX 3rd Generation Uranium Enrichment Technology 9
Slide 10: Enrichment Technology Overview
Enrichment Technology Overview For personal use only ❑ 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 - la
Slide 11: SILEX and Nuclear Fuel Production
SILEX and Nuclear Fuel Production For personal use only ❑ 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
Slide 12: SILEX Technology Commercialisation Program
SILEX Technology Commercialisation Program For personal use only ❑ 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 project development for uranium production – f
Slide 13: The GLE Restructure
For personal use only The GLE Restructure 13
Slide 14: The GLE Restructure
The GLE Restructure For personal use only ❑ 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)
Slide 15: The SILEX Technology License Agreement and the Paducah Opportunity
For personal use only The SILEX Technology License Agreement and the Paducah Opportunity 15
Slide 16: SILEX License Agreement Overview
SILEX License Agreement Overview For personal use only ❑ 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 mileston
Slide 17: The Paducah Opportunity – a 'Tier 1' Uranium Project
The Paducah Opportunity – a ‘Tier 1’ Uranium Project For personal use only ❑ 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 ❑ Enrichmen
Slide 18: Nuclear Power Growth and Market Outlook
For personal use only Nuclear Power Growth and Market Outlook 18
Slide 19: Benefits of Nuclear Power
Benefits of Nuclear Power For personal use only ❑ 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 –
Slide 20: Nuclear Power Growth
20 Nuclear Power Growth For personal use only World Nuclear Reactor Population 439 329 (75%) 108 (25%) 56 (13%) Operable Reactors Reactors Under Planned Reactors Proposed Reactors * Construction USA France Japan China Russia South Korea India Other * Other Proposed Reactors include 16 proposed in Sa
Slide 21: The Future - Small Modular Reactors (SMRs)
The Future - Small Modular Reactors (SMRs) For personal use only Next generation of nuclear reactors may offer significant advantages over large conventional reactors ❑ Modular, smaller size (50 MWe to 300 MWe) allows greater flexibility in deployment ❑ Potentially competitive with distributed gener
Slide 22: US Nuclear Industry Review
US Nuclear Industry Review For personal use only ❑ 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 G
Slide 23: US Uranium Market Focus
US Uranium Market Focus For personal use only Uranium purchased for US nuclear power reactors, 2010 – 2019 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 impo
Slide 24: Uranium Market Outlook
Uranium Market Outlook For personal use only Mid-Case Uranium Supply and Demand Forecast Year Source: UxC Uranium Market Outlook, Q2 2020 ❑ Uranium supplies will remain excess to demand, under the mid-case scenario, until around 2025 ❑ Secondary uranium supplies include production from underfeeding
Slide 25: Uranium Price – Early Signs of Term Price Recovery?
Uranium Price – Early Signs of Term Price Recovery? For personal use only Uranium Long-Term Base Price Forecast Year Source: UxC Uranium Market Outlook, Q2 2020 ❑ UxC forecast the mid-case uranium price recovering to over US$50/lb from around 2025 ❑ Recovery of the uranium market price is key to the
Slide 26: Zero-Spin Silicon Project for Quantum Computing
For personal use only Zero-Spin Silicon Project for Quantum Computing 26
Slide 27: ZS-Si: Silicon Enrichment Project for Quantum Computing
ZS-Si: Silicon Enrichment Project for Quantum Computing For personal use only ❑ Stable isotope program underway to utilise SILEX Laser Isotope Separation (LIS) technology for semiconductor and medical diagnostic applications ❑ Zero-Spin Silicon (ZS-Si) project launched December 2019 in collaboration
Slide 28: ZS-Si: Silicon Enrichment Project for Quantum Computing
ZS-Si : Silicon Enrichment Project for Quantum Computing For personal use only ❑ Current centrifuge production of enriched silicon is limited and costly - SILEX technology anticipated to produce much higher purity for lower cost ❑ Project aim is to provide a secure supply of ZS-Si in support of effo
Slide 29: Translucent Inc cREO Technology
For personal use only Translucent Inc cREO™ Technology 29
Slide 30: The Translucent – IQE Agreement
The Translucent – IQE Agreement For personal use only ❑ 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 to
Slide 31: cREO - IQE Development Program
cREO™ - IQE Development Program For personal use only ❑ 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 progr
Slide 32: Summary
For personal use only Summary 32
Slide 33: Summary
Summary For personal use only ❑ 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 re
Slide 34: Thank you
For personal use only Thank you 34