Silex Systems Limited · ASX:SLX
Silex Systems — Shareholder Meeting (November 2014)
26 slides from Silex Systems's shareholder meeting presentation, Nov 17, 2014
Slide 1: Silex Systems Limited 2014 Annual General Meeting
For personal use only Silex Systems Limited 2014 Annual General Meeting (ASX: SLX) (OTCQX: SILXY) Dr Michael Goldsworthy, CEO / Managing Director 18th November 2014 © Silex Systems Limited 2014
Slide 2: Forward Looking Statements
P2 Forward Looking Statements For personal use only Silex Systems is a research and development Company whose assets are its proprietary rights in various technologies, including, but not limited to, the SILEX technology, Solar Systems technology and Translucent technology. Several of the Company’s
Slide 3: Disclaimer
P3 Disclaimer For personal use only Silex Systems Ltd (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 various business activities. Except as required by law, no represe
Slide 4: The Company
P4 The Company For personal use only Silex Systems is a clean energy technology company, primarily focused on the development and commercialisation of its innovative and potentially disruptive laser-based SILEX uranium enrichment technology © Silex Systems Limited 2014
Slide 5: Our past, present and future focus
P5 Our past, present and future focus … For personal use only It’s all about energy … • Energy is core to the modern industrial economy and vital to economic growth • The global energy industry is undergoing disruptive change, driven by two key convergent factors: 1) The transition to clean energy d
Slide 6: The Energy Dilemma
P6 The Energy Dilemma: For personal use only • Exploding energy demand with increasing global population and urbanisation 75% increase in electricity demand over the next 25 years (IEA 2014) Accelerating demand in developing economies (e.g. China, India) • Increasing costs of conventional energy
Slide 7: How Silex is Contributing
P7 How Silex is Contributing … For personal use only • Nuclear Power – the SILEX Laser Enrichment Technology A potential game-changer for the US$5bn uranium enrichment industry Development continues despite slowing of project due to adverse market Market will recover as Japan restarts its flee
Slide 8: Silex Systems Strategic Review
P8 Silex Systems Strategic Review • Strategic review of business undertaken by Silex Board in June 2014, resulting in company restructure For personal use only • Key decision – to return the primary focus of the company to the development and commercialisation of our foundation technology – the SILE
Slide 9: Strategic Review - Summary
P9 Strategic Review - Summary For personal use only SILEX laser enrichment technology • Foundation technology and core asset of the company – invented and demonstrated in Sydney • Being commercialised by Silex and GLE in Australia and USA respectively • Project slowed in response to market downturn
Slide 10: SILEX Laser Uranium Enrichment Technology
For personal use only SILEX Laser Uranium Enrichment Technology © Silex Systems Limited 2014
Slide 11: Advantages of the SILEX Technology
P11 Advantages of the SILEX Technology For personal use only • Enrichment is the most difficult and costly step in making nuclear fuel for power reactors (~35% to 40% of total cost based on current market prices) • All enrichment today performed by gas centrifuge technology developed initially in th
Slide 12: Commercialisation and License Agreement
P12 Commercialisation and License Agreement For personal use only Perpetual Royalty Agreement with Global Laser Enrichment (GLE) • Exclusive worldwide commercialisation and license agreement for the SILEX Technology – signed in 2006 • GLE funding most of the commercialisation program - based in 51%
Slide 13: SILEX Technology Royalty Business Model
P13 SILEX Technology Royalty Business Model For personal use only Our business model for uranium enrichment: Zero capital cost High value Gen III technology Long term growth to Silex perpetual royalty advantage story • No further • Contracted • The only 3rd • Nuclear power capital range of royalty g
Slide 14: GLE's Phased Approach to Commercialisation
P14 GLE’s Phased Approach to Commercialisation For personal use only Commercial Plant Options • GLE plans include possible enrichment plant up to 6MSWU in Wilmington, NC (US NRC construction & operating License received in 2012) • Additional opportunity for a commercial plant in Paducah, Kentucky –
Slide 15: Paducah Enrichment Plant Opportunity Update
P15 Paducah Enrichment Plant Opportunity Update For personal use only Negotiations between GLE and the DOE continue • Closure of existing 1st generation gaseous diffusion plant in May 2013 – led to Department of Energy (DOE) bid process for future operations. • GLE submitted a proposal to the DOE in
Slide 16: Nuclear Energy Market Outlook
P16 Nuclear Energy Market Outlook For personal use only Global Nuclear Capacity to Increase Significantly • Likely potential for doubling in nuclear capacity from 436 plants today to ~ 900 plants in 2030 (allowing for some closures of older plants, and several Japanese plants likely to be permanentl
Slide 17: Uranium Enrichment Market Outlook
P17 Uranium Enrichment Market Outlook For personal use only Short Term Market Outlook – ‘Negative’ • Short term market likely to remain depressed due to impact of Japanese industry shutdown • Japanese reactors - likely to see first restarts in 2015 – much slower than anticipated • Uranium and Enrich
Slide 18: Why Nuclear Power is Essential to Sustainable Growth
P18 Why Nuclear Power is Essential to Sustainable Growth For personal use only Equivalent 1GWe Power Generation Plants Nuclear Coal Gas Fuel / yr* ~20 tons ~4,000,000 tons ~1,000,000 tons CO2 Emissions* 0 tons ~6,000,000 tons ~3,000,000 tons Cost*(LCOE) / MWh $65 ~ $100 $65 ~ $100 $55 ~ $100 *Source
Slide 19: Solar Systems CPV Dish Technology and Utility Scale Projects
For personal use only Solar Systems CPV Dish Technology and Utility Scale Projects © Silex Systems Limited 2014
Slide 20: Solar Systems CPV Dish Technology
P20 Solar Systems CPV Dish Technology For personal use only Two Concentrating Photovoltaic (CPV) Dish Solar Power Stations built and operated: 1. Mildura, Australia (~1.5MW, 40 dishes) • Opened July 2013 – demonstration now completed • Plans for large 100MW facility suspended after funding deeds for
Slide 21: Solar Systems – Update
P21 Solar Systems – Update • Strategy execution well advanced with several parties (Middle Eastern and US based) For personal use only having expressed interest • Corporate Advisor recently appointed to assist with securing a strategic partner and/or investor • In parallel, Solar Systems continues t
Slide 22: Translucent Advanced Semiconductor Materials Technology
For personal use only Translucent Advanced Semiconductor Materials Technology © Silex Systems Limited 2014
Slide 23: Translucent – Advanced Semiconductor Substrates
P23 Translucent – Advanced Semiconductor Substrates Value Proposition: For personal use only • Replace high cost substrates with low cost silicon wafers • Bring scalability into production lines (200mm substrates) Electric vehicle power • Potential to enable performance/efficiency improvements Power
Slide 24: Translucent - Update
P24 Translucent - Update For personal use only • Translucent is currently engaging with potential customers and/or strategic partners to accelerate the path to market • We are working towards securing a value-creating transaction with a strategic partner and/or investor • A Silicon Valley based Cons
Slide 25: The Silex Core Investment Case
P25 The Silex Core Investment Case For personal use only The Company is well advanced in executing a major strategic review including a significant reduction in cash burn beyond FY 2015 (current cash reserves ~$66m) Strategy includes accelerating the transition to market for subsidiaries Solar S
Slide 26: Thank you
For personal use only Thank you © Silex Systems Limited 2014