Slide 1: Silex Systems Limited Operational Update
For personal use only Silex Systems Limited Operational Update 22 August 2016 (ASX: SLX) (OTCQX: SILXY)
Slide 2: Forward Looking Statements
Forward Looking Statements For personal use only Silex Systems 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, licensed exclusively to GE-
Slide 3: The Company
The Company For personal use only © Silex Systems Limited 2016 3
Slide 4: Key FY2016 Activities and Status of Silex
Key FY2016 Activities and Status of Silex For personal use only • The Company is primarily focused on commercialisation of the unique SILEX technology as the best path forward to re-build value for shareholders when nuclear fuel markets return to growth • A Term Sheet was executed with GE-Hitachi on
Slide 5: SILEX Laser Uranium Enrichment Technology
For personal use only SILEX Laser Uranium Enrichment Technology
Slide 6: Enrichment Technology Overview
Enrichment Technology Overview For personal use only • GLE and Silex developing 3rd generation laser enrichment technology Separation of Isotopes by Laser EXcitation (SILEX) Highly selective excitation of U235 to separate isotopes Uranium Enrichment Technology Gaseous Diffusion Centrifuge Laser
Slide 7: GLE Overview
GLE Overview For personal use only • GLE is the exclusive Licensee of the SILEX laser uranium enrichment technology Unique third generation laser technology with economic potential to leap-frog centrifuge Significantly higher efficiency than centrifuge, lower costs, smaller environmental footpri
Slide 8: GLE Restructure
GLE Restructure For personal use only • Silex is leading the efforts to restructure licensee GLE with new shareholders • Several third parties showing interest in opportunity to invest in a game-changing technology • Strong support from US government and industry for second US producer with Global L
Slide 9: Commercialisation and License Agreement
Commercialisation and License Agreement For personal use only Perpetual Royalty Agreement with GLE • Exclusive worldwide commercialisation and license agreement for the SILEX with Global Laser Enrichment (GLE) Technology – signed in 2006 • Phase I milestone completed in May 2013 – triggered US$15 mi
Slide 10: Nuclear Fuel Production
Nuclear Fuel Production For personal use only SILEX/GLE The SILEX Technology can be utilised to produce i) natural grade uranium via re-processing of tails inventories ii) enriched uranium for use as fuel in nuclear power reactors Uranium (~40%) and enrichment (~30%) comprise ~70% of the value i
Slide 11: The SILEX Enrichment Process
The SILEX Enrichment Process For personal use only Natural UF6 • Technically difficult to separate U235 - 0.71% U235 high barriers-to-entry • An essential step in producing nuclear fuel for most of today’s power reactors ~10% ~90% • Nearly all enrichment is currently Separation performed with gas ce
Slide 12: SILEX Technology - Process Flow Diagram
SILEX Technology - Process Flow Diagram For personal use only UF6 Feed UF6 Handling & Storage Enriched Product Laser Systems UF6 Withdrawal UF6 Feed System Separator Systems Systems Carrier Gas Separator Support CG Feed & Storage CG Recovery System Systems Depleted Tails Balance of Plant (Plant Supp
Slide 13: GLE's Phased Approach to Commercialisation
GLE’s Phased Approach to Commercialisation For personal use only • Phase I: ‘Technology Validation’ successfully completed in 2013 • Phase II: ‘Economic Validation’ is the focus for the next few years, including demonstration of full scale commercial production capability • Plans include an opportun
Slide 14: Paducah Tails Enrichment Plant Opportunity
Paducah Tails Enrichment Plant Opportunity A key bridging project to commercial deployment For personal use only • DOE selected GLE’s proposal for a commercial laser enrichment plant at Paducah in November 2013 • Enrichment of DOE tails stockpiles equivalent to a large, low cost uranium mine operati
Slide 15: The Tails Re-Processing Opportunity
The Tails Re-Processing Opportunity A Tier 1 Uranium Asset For personal use only DOE Tails (UF6) • The DOE holds over 500,000 MTU of tails 0.2 - 0.5% U235 material left over from decades of defence and commercial operations • GLE’s proposal to use efficient SILEX ~35% ~65% technology could recover a
Slide 16: Wilmington Enrichment Plant Opportunity
Wilmington Enrichment Plant Opportunity NRC License obtained in 2012 For personal use only • US enrichment demand currently ~15MSWU total • Current enrichment capacity in the US is only one third of US requirements (4.7MSWU - URENCO USA) • Strong support from US utilities for a new low-cost US- base
Slide 17: The GLE Business Case
The GLE Business Case Uranium and SWU Production For personal use only Global Factors: • Global growth in nuclear capacity is accelerating with surging world energy demand • Geo-political factors driving increasing vulnerability with rising influence of Russia and China • Energy security, grid stabi
Slide 18: Nuclear Power Forecasted to Grow Through 2030
Nuclear Power Forecasted to Grow Through 2030 For personal use only Nuclear Generating Capacity Forecast Key Statistics 11 percent of global electricity 445 operable reactors currently 61 new plants under construction 170 plants planned 339 plants proposed Source: World Nuclear Association
Slide 19: UxC Market Views: Uranium Market Outlook
UxC Market Views Uranium Market Outlook For personal use only Uranium Supply and Demand Forecast Million pounds U3O8 © UxC 350 325 URM World Market 300 Demand Range 275 250 225 200 175 150 Planned Production 125 100 Existing 75 Production 50 25 Secondary Supplies (including Tails re-enrichment) 0 15
Slide 20: UxC Market Views: Enrichment Market Outlook
UxC Market Views Enrichment Market Outlook For personal use only Rest of World (ROW) Enrichment Supply and Demand Forecast Note: ROW assumes Russia covers all domestic and EU Russian reactor requirements and supplies 20% of U.S. requirements, and China covers only its domestic requirements Source: U
Slide 21: Uranium and SWU Market Recovery
Uranium and SWU Market Recovery Why is recovery inevitable? For personal use only • Global growth in nuclear capacity is accelerating per current industry forecasts • Japanese reactor restarts will also accelerate over the next few years • Increasing unfilled demand (per UxC forecasts) will increase
Slide 22: Enrichment Market Considerations
Enrichment Market Considerations Window of Opportunity for GLE For personal use only • High barriers to entry Highly restricted access to sensitive nuclear technology Only four active producers: Urenco, Areva, Tenex, China High technology hurdle - transition from GDP to centrifuge only recentl
Slide 23: Translucent Inc – cREO Technology
For personal use only Translucent Inc – cREO™ Technology
Slide 24: The Translucent – IQE Agreement
The Translucent – IQE Agreement For personal use only • Translucent’s innovative ‘Rare Earth Oxide’ (cREO™) technology has potential application to high volume semiconductor sectors such as power electronics and wireless communications chips • Translucent signed an exclusive license agreement in Sep
Slide 25: cREO - IQE Program
cREO™ - IQE Program For personal use only • cREO™ technology was transferred during FY2016 to IQE’s Greensboro, North Carolina manufacturing facility for the completion of product development and commercialisation activities • Product development focus is on high volume semiconductor sectors such as
Slide 26: Summary and Outlook
For personal use only Summary and Outlook
Slide 27: Summary and Outlook
Summary and Outlook For personal use only • Two unique technologies licensed to leading commercial organisations Translucent’s cREO™ technology licensed to IQE – being commercially deployed The SILEX laser technology licensed to GLE – in engineering scale-up phase Significant royalty streams t
Slide 28: Thank you
For personal use only Thank you
Slide 29: Disclaimer
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 business activities. Except as required by law, no representation or