Silex Systems Limited · ASX:SLX
Silex Systems — Shareholder Meeting (October 2021)
31 slides from Silex Systems's shareholder meeting presentation, Oct 14, 2021
Slide 1: 2021 Annual General Meeting
For personal use only Silex Systems Limited 2021 Annual General Meeting (ASX: SLX) (OTCQX: SILXY) Dr Michael Goldsworthy CEO/Managing Director 14 October 2021 www.silex.com.au 1
Slide 2: Forward Looking Statements and Risk Factors
Forward Looking Statements and Risk Factors About Silex Systems Limited (ASX: SLX) (OTCQX: SILXY) For personal use only Silex Systems Limited ABN 69 003 372 067 (Silex or Company) is a research and development company whose primary asset is the SILEX laser enrichment technology, originally developed
Slide 3: Our Mission: commercialise the SILEX laser enrichment technology
Our Mission: to commercialise the unique SILEX laser enrichment technology for application to: For personal use only Uranium production and Silicon enrichment (silicon Other potential markets (e.g. enrichment (nuclear power) quantum computing) medical isotopes) Our strategy is focused on extracting
Slide 4: Silex - Positioning for Commercialisation
Silex - Positioning for Commercialisation • Acquisition of 51% interest in SILEX uranium enrichment technology commercialisation vehicle GLE For personal use only • US-based GLE now owned 51% by Silex and 49% by Cameco Corporation • Cameco is one of the world’s leading uranium and nuclear fuel suppl
Slide 5: Investment Focus – ESG Priorities
Investment Focus – ESG Priorities For personal use only Investment in three key growth industries with strong ESG credentials: 1) Clean Energy: Nuclear Power – potential to support Net-Zero 2050 targets 2) Next Generation Quantum Computing – expected to help solve global social and environmental iss
Slide 6: SILEX Technology Commercialisation Overview
SILEX Technology Commercialisation Overview For personal use only 51% Owned 100% Owned Other Potential Markets SILEX Uranium Production via GLE SILEX Zero-Spin Silicon Production E.g. Medical Isotopes Technology SILEX laser enrichment Technology SILEX laser enrichment SILEX laser enrichment Licensed
Slide 7: Highlights of the Year in Review
Highlights of the Year in Review For personal use only SILEX Uranium Enrichment Technology / GLE Highlights: • US Government approvals for the GLE acquisition were received in January 2021 • GLE acquisition completed - resulting in Silex acquiring 51% interest in GLE (Cameco 49%) • Silex and Cameco
Slide 8: Equity Raise ($33m) and Share Purchase Plan ($7m)
Equity Raise ($33m) and Share Purchase Plan ($7m) For personal use only Advancing the SILEX Technology towards commercialisation: Equity raise completed 1 October 2021 • Approximately $33 million raised at $1.27 per share with ~26 million shares issued • Strong interest from high quality domestic, i
Slide 9: Uranium Production and Enrichment for Nuclear Fuel
For personal use only Uranium Production and Enrichment for Nuclear Fuel www.silex.com.au 9
Slide 10: SILEX Uranium Production Opportunity
SILEX Uranium Production Opportunity For personal use only Global demand for Uranium is set to rise: A significant potential uranium supply shortage is forecast • Structural supply deficit could occur without a timely increase in production • Demand could grow significantly as zero-emissions nuclear
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 d
Slide 12: The Paducah Opportunity Potential Value Chain
The Paducah Opportunity Potential Value Chain ‘Full Service’ Nuclear Fuel Materials Concept For personal use only SILEX Technology Depleted UF6 Tails Uranium Production LEU Production HALEU Production GLE-DOE Agreement ~5M lbs/yr for 30 years ~2 MSWU1/yr Enrichment 100+ Tons/yr – by 20302 Convention
Slide 13: Paducah Uranium Production Opportunity
Paducah Uranium Production Opportunity For personal use only Akin to a ‘Tier 1’ Target Commercial Uranium Resource* Equivalent U3O8 Operation Date based on low cost and Production longevity of production Planning for ~5 million lbs p.a. Anticipated to be late 2020’s (Silex estimate of all-in cost fo
Slide 14: Emerging Opportunity - Small Modular Reactors (SMR's)
Emerging Opportunity - Small Modular Reactors (SMR’s) For personal use only • Several next generation SMR designs use High Assay Low Enriched Uranium (HALEU) • SILEX technology may provide a flexible low cost alternative to produce HALEU for SMR’s • SMR’s are modular, smaller size (50 MWe to 300 MWe
Slide 15: SILEX Commercialisation and Royalty Agreement
SILEX Commercialisation and Royalty Agreement For personal use only • GLE holds exclusive worldwide license for use of SILEX laser technology for uranium Paducah, KY Enrichment Plant Site • License agreement includes US$20 million in payments to Silex triggered by commercial development milestones:
Slide 16: Nuclear Power and the Nuclear Fuel Market Opportunity
For personal use only Nuclear Power and the Nuclear Fuel Market Opportunity www.silex.com.au 16
Slide 17: 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 For personal use only Clean Energy Zero-Emissions Low Cost 24/7 Reliability LCOE1 ~ US$70/MWHr Base Load Stability Nuclear Power Highest Capacity Factor Cl
Slide 18: Significant Nuclear Power Growth Essential for Net Zero 2050
Significant Nuclear Power Growth Essential for Net Zero 2050 For personal use only Nuclear Generation Scenarios World Nuclear Reactor Population TWh 8,000 444 Net Zero 263% 7,000 Rapid 6,000 325 (73%) Business-as-usual 204% 5,000 4,000 140% 3,000 99 (22%) 56 (13%) 2,000 2000 2005 2010 2015 2020 2025
Slide 19: US Uranium Market Outlook – Supply Shortage Forecast
US Uranium Market Outlook – Supply Shortage Forecast For personal use only Mid-Case Uranium Supply and Demand Forecast Million pounds U3O8 © UxC World Market Demand Range 300 275 250 225 200 175 150 125 100 75 50 25 0 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 3
Slide 20: Uranium Price – Price Recovery Underway
Uranium Price – Price Recovery Underway For personal use only Uranium Long-Term Base Price Forecast Then-Current US$/lb U3O8 © UxC $100 Ux LT U3O8 High $90 Ux LT U3O8 Midpoint $80 Ux LT U3O8 Low Mid Long-Term Base $70 Low Long-Term Base $60 High Long-Term Base $50 Composite LT Base Historical High a
Slide 21: Paducah Opportunity may help address US Uranium Vulnerability
Paducah Opportunity may help address US Uranium Vulnerability For personal use only Uranium purchased for U.S. nuclear power reactors, 2010 - 2020 Million pounds U3O8 equivalent 60 US Imports ~90% (avg.) of Uranium purchased 50 40 30 20 10 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 U.S
Slide 22: Zero-Spin Silicon for Quantum Computing
For personal use only Zero-Spin Silicon for Quantum Computing www.silex.com.au 22
Slide 23: SILEX Zero-Spin Silicon Opportunity
SILEX Zero-Spin Silicon Opportunity For personal use only Global race to develop world’s first Quantum Computers • QC’s expected to be 1000’s of times more powerful than today’s conventional computers • QC anticipated to create new opportunities in medicine, AI, cybersecurity, finance, logistics etc
Slide 24: SILEX Project for ZS-Si production gathering momentum
SILEX Project for ZS-Si production gathering momentum For personal use only • Project partners SQC and UNSW part of the Federally funded ‘CQC2T Centre of Excellence’ ZS-Si for Silicon Quantum Computing – a world leader in silicon-based QC technology development • 3-year project cost ~$8m (includes p
Slide 25: ZS-Si for Silicon Quantum Computing
ZS-Si for Silicon Quantum Computing For personal use only Silex ZS-Si Project Front-end process SILEX ZS-Si production Back-end process Raw silicon SILEX enrichment Pure ZS-Si ZS-Si Quantum chips www.silex.com.au 25
Slide 26: SILEX Zero-Spin Silicon Production Opportunity
SILEX Zero-Spin Silicon Production Opportunity For personal use only Aim Production Target Commercial Commercial pilot scale establish a reliable and Operation Date production up to 5 kgs per economic supply of high purity 2023 year, anticipated to increase ZS-Si over the next decade Commercial ZS-S
Slide 27: cREO Advanced Semiconductor Technology
For personal use only ® cREO Advanced Semiconductor Technology (Nb. Not related to the SILEX enrichment technology) www.silex.com.au 27
Slide 28: cREO Advanced Semiconductor Opportunity
cREO® Advanced Semiconductor Opportunity For personal use only IQE’s 5G Filter Solution – IQepiMo™ based on cREO® Silex’s cREO® Advanced Semiconductor materials for 5G Mobile Applications • cREO® technology purchased by IQE (AIM: IQE) in 2018 with US$5m payment • IQE is global leader in supply of ad
Slide 29: Summary
For personal use only Summary www.silex.com.au 29
Slide 30: Summary
Summary For personal use only GLE JV (Silex 51% and Cameco 49%) aiming to demonstrate SILEX uranium enrichment technology at pilot commercial scale by the mid 2020’s GLE’s path to market focused on the Paducah opportunity - a large, low cost uranium production project with additional potential for u
Slide 31: Thank you
For personal use only Thank you 31