Slide 1: Operational Update – FY2015
For personal use only Silex Systems Limited Operational Update – FY2015 (ASX: SLX) (OTCQX: SILXY) Dr Michael Goldsworthy, CEO / Managing Director 21st August 2015 © Silex Systems Limited 2015
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. The Company’s technologie
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 an advanced technology company, primarily focused on the development and commercialisation of its innovative and potentially disruptive laser-based SILEX uranium enrichment technology © Silex Systems Limited 2015
Slide 5: Silex Restructure Nearing Completion
P5 Silex Restructure Nearing Completion For personal use only Key Points - Silex Systems Strategic Review and Restructure • Strategic review of business undertaken by Silex Board in June 2014 resulting in company restructure • Key decision – to return the primary focus of the company to the developm
Slide 6: GLE Restructure Completed
P6 GLE Restructure Completed For personal use only Key Points - GE-Hitachi Global Laser Enrichment (GLE) Restructure • SILEX technology Licensee GLE announced a major restructure in July 2014, slowing the commercialisation project in response to adverse conditions in nuclear fuel markets (Fukushima
Slide 7: SILEX Laser Uranium Enrichment Technology
For personal use only SILEX Laser Uranium Enrichment Technology © Silex Systems Limited 2015
Slide 8: Advantages of the SILEX Technology
P8 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 the
Slide 9: Commercialisation and License Agreement
P9 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 • Phase I milestone completed in May 2013 – triggered US$15 51% 25%
Slide 10: SILEX Technology Royalty Business Model
P10 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 • Plant capex to • Contracted • Only laser- • Global nuclear be funded by range of
Slide 11: GLE's Phased Approach to Commercialisation
P11 GLE’s Phased Approach to Commercialisation For personal use only Commercial Plant Options • Plans include possible enrichment plant of up to 6MSWU in Wilmington, NC (US NRC construction & operating License received in 2012) • Additional opportunity for a commercial plant in Paducah, Kentucky – s
Slide 12: Paducah Enrichment Plant Opportunity Update
P12 Paducah Enrichment Plant Opportunity Update For personal use only Negotiations between GLE and the DOE continue • Closure of last 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 Augu
Slide 13: Nuclear Energy Market Outlook
P13 Nuclear Energy Market Outlook For personal use only • Potential for significant increase in nuclear capacity over the next two decades • Energy security and climate change are two key drivers for nuclear power deployment Nuclear plant forecasts to 2030* Key Statistics Country 2015 2030 11 perc
Slide 14: Uranium Enrichment Market Outlook
P14 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 reactor restarts slower than anticipated, with first unit at Sendai just back online • Uranium mark
Slide 15: Recent Industry Developments
P15 Recent Industry Developments For personal use only Japanese Reactor Restarts • First reactor at ‘Sendai’ restarted August 2015 and producing power with second unit to restart in coming months • Two units at ‘Takahama’ to restart later in 2015 and early 2016, with the Ikata 3 unit also expected t
Slide 16: Summary
P16 Summary For personal use only The Company is nearing completion of a major restructure, resulting in a significant reduction in cash burn going forward (current cash reserves ~$53m) Restructure resulted in a cessation of the Solar Systems business on 30 July, with the Translucent divestment
Slide 17: Thank you
For personal use only Thank you © Silex Systems Limited 2015