Silex Systems Limited · ASX:SLX
Silex Systems — Shareholder Meeting (November 2017)
41 slides from Silex Systems's shareholder meeting presentation, Nov 10, 2017
Slide 1: Silex Systems Limited 2017 Annual General Meeting
Silex Systems Limited 2017 Annual General Meeting (ASX: SLX) (OTCQX: SILXY) Dr Michael Goldsworthy CEO/Managing Director 10 November 2017
Slide 2: Forward Looking Statements
Forward Looking Statements 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-Hitachi Global Laser E
Slide 3: Disclaimer
Disclaimer 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 warranty, express or i
Slide 4: Silex Systems Limited
Silex Systems Limited Silex Systems (Silex) is an advanced technology company focused on the commercialisation of its innovative SILEX laser enrichment technology for nuclear fuel production 2017 AGM © Silex Systems Limited 2017 4
Slide 5: Our Mission and the Year in Review
Our Mission and the Year in Review
Slide 6: Our Mission
Our Mission To successfully commercialise our core asset, the SILEX technology, in collaboration with exclusive licensee Global Laser Enrichment (GLE) Key to the execution of our mission are the following: Increasing Silex’s involvement with GLE – potentially as a majority shareholder Increasi
Slide 7: The Year in Review
The Year in Review • The Company’s primary focus during the year has been on progressing the restructure of US-based licensee GLE • Silex continued to lead the search for new investors for GLE in 2017. Discussions and due diligence continue with a number of interested parties, however no firm commit
Slide 8: Overview of the Nuclear Power Industry
Overview of the Nuclear Power Industry
Slide 9: Advantages of Nuclear Power
Advantages of Nuclear Power Nuclear addresses grid stability and supply security issues • Proven, robust base load generation • Low generation cost per unit (LCOE of $100 /MWh or 10c /kWh) • Electricity generated is dispatchable on demand and able to varied up or down with grid loading • Power price
Slide 10: Global Nuclear Power Remains Strong
Global Nuclear Power Remains Strong “Nuclear and renewables see strong growth, contributing close to 40 percent of incremental Source: U.S. EIA: International Energy Outlook 2016 energy supplies to meet demand growth” Source: ExxonMobil: 2017 Outlook for Energy: A View to 2040 2017 AGM © Silex Syste
Slide 11: Nuclear Power Growth Outlook
Nuclear Power Growth Outlook Ongoing need for Enriched Uranium Nuclear Power Growth 2008 - 2040 Nuclear Power Figures MWe net © UxC 500,000 • Over 100 GWe of nuclear generation 450,000 to be introduced over next 20+ years 400,000 350,000 • 90% (92 GWe) require Low Enriched 300,000 Uranium (LEU) for
Slide 12: SMRs and Advanced Nuclear Reactors
SMRs and Advanced Nuclear Reactors Next generation of nuclear reactors - offer significant advantages over large conventional reactors Modular, smaller size (< 300 MWe) allows flexibility and competition with distributed generation such as renewables Designed-in load-following versatility – ramp
Slide 13: Nuclear Gaining US Government Support
Nuclear Gaining US Government Support 1) White House Nuclear Review June 2017 Strong support from the White House for nuclear President Trump announced a major review into nuclear energy policy in the US 2) US DOE Grid Reliability Study August 2017 Need to provide market mechanism to value rel
Slide 14: GLE Restructure
GLE Restructure dp Silex
Slide 15: GLE Restructure
GLE Restructure • A restructure of GLE was precipitated when GEH disclosed on 18 April 2016 that it was looking to exit due to changes in business priorities and continuing difficult market conditions • Silex and GEH signed a term sheet on 29 April 2016 giving Silex an exclusive and assignable optio
Slide 16: GLE Restructure Overview
GLE Restructure Overview /others Restructure 2017 AGM | © Silex Systems Limited 2017 16
Slide 17: Overview of the SILEX Technology
Overview of the SILEX Technology
Slide 18: Enrichment Technology Overview
Enrichment Technology Overview • SILEX - third generation laser enrichment technology SILEX - Separation of Isotopes by Laser EXcitation Highly selective laser (optical) excitation of 235UF6 to separate isotopes Very high enrichment efficiency – expect low SWU* costs Only known large scale c
Slide 19: SILEX and Nuclear Fuel Production
SILEX and Nuclear Fuel Production The SILEX technology can be utilized to produce: i) natural grade uranium via re-enrichment of tails inventories (e.g. Paducah) ii) enriched uranium for use as fuel in nuclear power reactors (including HALEU) Uranium production (~45%) and enrichment (~25%) compr
Slide 20: The Tails Re-Enrichment Opportunity
The Tails Re-Enrichment Opportunity A Tier 1 Uranium Production Asset DOE Tails (UF6) • The US DOE holds over 500,000 MTU of tails 0.2 - 0.5% U235 material from decades of enrichment operations • Approximately ~300,000 MTU are regarded as ‘high assay tails’ (over ~0.25%) ~35% ~65% • SILEX technology
Slide 21: The SILEX Enrichment Process
The SILEX Enrichment Process • Enrichment technically difficult - high Natural UF6 barriers-to-entry 0.71% U235 • Nearly all enrichment is currently performed with gas centrifuge technology ~10% ~90% • SILEX laser technology inherently higher Separation efficiency lower costs expected • SILEX capita
Slide 22: The SILEX Technology License Agreement and Commercialisation Program
The SILEX Technology License Agreement and Commercialisation Program
Slide 23: Commercialisation Program Background
Commercialisation Program Background 2006: GE signed Commercialisation and License Agreement with Silex Systems Technology transferred to US in 2007 under US-Australia Bilateral Treaty 2007: GE and Hitachi partnered (as GEH) to form GLE – based in Wilmington, NC 2008: Cameco bought 24% stake in GL
Slide 24: SILEX License Agreement Overview with GLE
SILEX License Agreement Overview Technology License Agreement with GLE • Exclusive worldwide commercialisation and license agreement for the SILEX with Global Laser Enrichment (GLE) technology – signed in 2006 • Technology validation milestone May 2013 – triggered US$15 million payment to Silex • Ne
Slide 25: GLE's Commercialisation Program
GLE’s Commercialisation Program For the SILEX Technology • ‘Technology Validation’ successfully completed in 2013 at the Test Loop Facility • ‘Economic and Engineering Validation’ the current focus - includes demonstration of full scale commercial production capability ~2021 • Commercialisation plan
Slide 26: Paducah Tails Re-enrichment Opportunity
Paducah Tails Re-enrichment Opportunity The path to commercialisation • Agreement between GLE and DOE signed 10 November 2016 involving the Paducah Laser Enrichment Facility • Re-enrichment of DOE tails stockpiles equivalent to a large, low cost uranium mine operating for at least 40 years • SILEX e
Slide 27: Wilmington Enrichment Plant Opportunity
Wilmington Enrichment Plant Opportunity NRC License obtained in 2012 • US enrichment demand currently ~15 MSWU total • Current enrichment capacity in the US is only one third of US requirements (4.7 MSWU - URENCO USA) • Positive support from US utilities for a new low-cost US- based SWU supplier • G
Slide 28: The Market Outlook – Uranium and Enrichment
The Market Outlook – Uranium and Enrichment
Slide 29: UxC Market Views: Uranium Market Outlook
UxC Market Views Uranium Market Outlook Uranium Supply and Demand Forecast 2008-2030 (Tails re-enrichment included) Source: UxC Uranium Market Outlook, Q3 2017 • Uranium supplies remain excess to market demand, under the mid-case scenario, until mid 2020’s • Secondary uranium supplies include produc
Slide 30: US Market Focus
US Market Focus Leading countries based on uranium consumption worldwide (in thousand metric tons) • US market the largest user of nuclear fuel with 99 reactors • US is leading the development efforts for next generation SMRs • While China, India and Middle East growing, US remains the dominant cons
Slide 31: UxC Market Views: Enrichment Outlook Q4 2016
UxC Market Views Enrichment (SWU) Market Outlook – Q4 2016 Base Case Enrichment Supply and Demand Forecast Source: UxC Enrichment Market Outlook, Q4 2016 • Base case forecast showed market back in balance ~2025 and then going into supply shortage • Assumed timely restarts of Japanese units and fewer
Slide 32: UxC Market Views: Enrichment Outlook Q3 2017
UxC Market Views Enrichment (SWU) Market Outlook – Q3 2017 Base Case Enrichment Supply and Demand Forecast Years Source: UxC Enrichment Market Outlook, Q3 2017 • Forecast demand for SWU has softened further over the first three quarters of 2017, with potential oversupply (dominated by Russian capaci
Slide 33: Target Market for SILEX SWU
Target Market for SILEX SWU Uncovered SWU Demand 2016 – 2030 Base Case Uncovered Demand Forecast Year Source: UxC Enrichment Market Outlook, Q3 2017 From 2025, forecast uncovered US SWU demand is in excess of 10MSWU per year Significant opportunities for SILEX SWU remain from the mid 2020’s and
Slide 34: Translucent Inc – cREO Technology
Translucent Inc – cREO™ Technology
Slide 35: The Translucent – IQE Agreement
The Translucent – IQE Agreement • Translucent’s innovative ‘Rare Earth Oxide’ (cREO™) technology has commercial application to advanced semiconductor devices and chips • Translucent signed an exclusive license agreement in September 2015 with IQE - the world’s leading semiconductor epiwafer supplier
Slide 36: cREO - IQE Development Program
cREO™ - IQE Development Program • cREO™ technology was transferred to IQE’s Greensboro, North Carolina manufacturing facility for the completion of initial product development activities over the remaining license period to March 2018 • Product development focus is on high volume sectors such as wir
Slide 37: cREO - Initial Applications
cREO™ - Initial Applications Power electronics applications cREO™ Substrates Electric vehicle power Motor controllers for converters electrical appliances Lighting power converters DC/AC conversion (e.g. street lights) (e.g. solar inverters) • High efficiency power conversion devices Wireless commun
Slide 38: cREO - IQE Commercialisation Outlook
cREO™ - IQE Commercialisation Outlook • The technology is protected by a wide ranging IP portfolio, including the original Translucent patents and several newer applications filed by IQE • cREO™ technology has the potential to be applied across all six of IQE’s key market sectors • Initial target ma
Slide 39: Summary and Outlook
Summary and Outlook dp Silex
Slide 40: Summary and Outlook
Summary and Outlook • Unique third generation SILEX laser enrichment technology at advanced stage of development • Proven high efficiency provides potential cost advantages with increased operational flexibility • Continued focus on the successful restructure of GLE with increased participation by S
Slide 41: Thank you
Thank you dp Silex