Silex Systems Limited · ASX:SLX
Silex Systems — Investor Presentation (June 2022)
36 slides from Silex Systems's investor presentation, Jun 7, 2022
Slide 1: Investor Presentation ASX announcement
For personal use only Investor Presentation 7June 2022 Silex Systems Limited (Silex) (ASX: SLX) (OTCQX: SILXY) today provided an updated Investor Presentation, which includes an overview of the Company’s commercialisation of the SILEX laser enrichment technology and the potential to address emerging
Slide 2: Silex Systems Limited Investor Presentation
For personal use only Silex Systems Limited Investor Presentation (ASX: SLX) (OTCQX: SILXY) Dr Michael Goldsworthy CEO/Managing Director 7 June 2022 www.silex.com.au 1
Slide 3: 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 4: Our Mission
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 5: SILEX Technology Commercialisation Overview
SILEX Technology Commercialisation Overview For personal use only 51% Owned 100% Owned Other Isotope Markets SILEX Uranium Enrichment via SILEX Zero-Spin Silicon (ZS-Si) Medical Isotopes and other Global Laser Enrichment (GLE) via in-house production industrial isotopes SILEX laser enrichment Techno
Slide 6: Recent Highlights
Recent Highlights For personal use only Global Laser Enrichment (GLE) Commercialisation Project / SILEX Uranium Technology: • GLE acquisition completed January 2021 - Silex 51% interest and Cameco 49% – operating as a jointly-controlled JV • GLE ramping up activities in the SILEX technology demonstr
Slide 7: Nuclear Fuel Supply Chain - Opportunities for GLE and the SILEX Technology
For personal use only Nuclear Fuel Supply Chain - Opportunities for GLE and the SILEX Technology www.silex.com.au 6
Slide 8: Global Trends and Issues Energizing Nuclear Fuel Markets
Global Trends and Issues Energizing Nuclear Fuel Markets For personal use only Longer Term - Population growth and underlying increase in energy demand - De-carbonisation movement – Net Zero 2050 target - Electrification of transport sector and clean hydrogen economy - Energy security – risk mitigat
Slide 9: Russian Share of US Nuclear Fuel Requirements
Russian Share of US Nuclear Fuel Requirements For personal use only Russian Global Capacity1 Current US Imports of Russian Nuclear Fuel1,2 Uranium (U308) 2. 14% ~16% Conversion 27% ~18% Enrichment (SWU)2. 39% ~20% 1. UxC, LLC various reports Q1 and Q2, 2022 2. EIA, 2020 Uranium Marketing Annual Repo
Slide 10: Other Nuclear Industry Developments
Other Nuclear Industry Developments For personal use only • US: legislation introduced to support nuclear generation, nuclear fuel supply and reduce geopolitical risks – 4 Bills currently before Congress (key bill relates to support for the DOE’s HALEU Availability Program) • UK: in April 2022, anno
Slide 11: Nuclear Fuel Opportunities for GLE and the SILEX Technology
Nuclear Fuel Opportunities for GLE and the SILEX Technology For personal use only www.silex.com.au 10
Slide 12: Nuclear Fuel Opportunities for GLE and the SILEX Technology
Nuclear Fuel Opportunities for GLE and the SILEX Technology For personal use only www.silex.com.au 11
Slide 13: Key Components of Nuclear Fuel – Price Recovery
Key Components of Nuclear Fuel – Price Recovery For personal use only Uranium Price Conversion Price Enrichment (SWU) Price $70.00 $35.00 $140.00 U3O8 LT U3O8 NA NA LT Spot LT SWU Spot Conv Conv SWU $60.00 $30.00 $120.00 $50.00 $25.00 $100.00 $40.00 $20.00 $80.00 $30.00 $15.00 $60.00 $20.00 $10.00 $
Slide 14: Potential Implications for GLE and the SILEX Technology
Potential Implications for GLE and the SILEX Technology For personal use only GLE is uniquely positioned to address the ‘Triple Opportunity’ emerging in the global nuclear fuel supply chain: 1) Tails processing (PLEF1 Project) to produce natural grade UF6 and help alleviate UF6 conversion supply pre
Slide 15: The Paducah Opportunity
For personal use only The Paducah Opportunity www.silex.com.au 14
Slide 16: The Paducah Opportunity – Foundation Commercial Project
The Paducah Opportunity – Foundation Commercial Project For personal use only The Paducah Laser Enrichment Facility (PLEF): • GLE’s flagship Paducah project aims to enrich depleted tails with SILEX technology to produce natural grade UF 6 • Paducah project is underpinned by the 2016 agreement with U
Slide 17: The Paducah Triple Opportunity Value Chain
The Paducah Triple Opportunity Value Chain Integrated Nuclear Fuel Supply Chain Model For personal use only SILEX Technology ‘Triple Opportunity’ Uranium production Depleted UF6 Tails LEU / LEU+ production HALEU production GLE-DOE Agreement 1 up to 5M lbs/yr for 30 2 2+ MSWU1/yr Enrichment 3 100+ To
Slide 18: Paducah Uranium Production Opportunity
Paducah Uranium Production Opportunity (Stage 1 only – natural UF6 production) For personal use only Akin to a ‘Tier 1’ Target Commercial Uranium Resource* Equivalent U3O8 Operation Date Based on low cost and Production Tentatively late 2020’s - longevity of production Planning for up to 5 million l
Slide 19: GLE / SILEX Technology Commercialisation Timelines
GLE / SILEX Technology Commercialisation Timelines1 For personal use only Baseline - GLE Commercialisation Timeline: PLEF Commercial Commercial Pilot Demonstration2 PLEF3 Feasibility and Licensing PLEF EPC4 Operations c. 2025 c. 2027 c. 2030 Potential Acceleration - GLE Commercialisation Timeline5:
Slide 20: SILEX Technology License and Cameco Equity Option
SILEX Technology License and Cameco Equity Option For personal use only Technology License: • GLE holds exclusive worldwide license for use of SILEX laser technology for uranium enrichment • License agreement includes US$20 million in payments to Silex triggered by commercialisation milestones • Per
Slide 21: Evolution of Enrichment Technology
Evolution of Enrichment Technology For personal use only 1st Generation Technology 2nd Generation Technology 3rd Generation Technology Gaseous Diffusion Centrifuge SILEX Laser Very low efficiency Modest efficiency High efficiency High cost Lower cost Anticipated to be lowest cost Obsolete Current te
Slide 22: Emerging Opportunity – Small Modular Reactors
Emerging Opportunity – Small Modular Reactors* (SMRs) For personal use only • Several next generation advanced SMR designs will use High Assay Low Enriched Uranium (HALEU) • SILEX technology may provide a flexible low cost alternative to produce HALEU for advanced SMRs • SMRs are modular, smaller si
Slide 23: Nuclear Power and the Nuclear Fuel Market Opportunity
For personal use only Nuclear Power and the Nuclear Fuel Market Opportunity www.silex.com.au 22
Slide 24: 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 25: Significant Nuclear Power Growth for Net Zero 2050
Significant Nuclear Power Growth for Net Zero 2050 For personal use only Nuclear Generation Scenarios World Nuclear Reactor Population TWh 8,000 Net Zero 263% 7,000 Rapid 6,000 Business-as-usual 204% 5,000 4,000 140% 3,000 2,000 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Source: BP Energ
Slide 26: Uranium Market Outlook – Supply Shortage Forecast
Uranium Market Outlook – Supply Shortage Forecast For personal use only Mid-Case Uranium Supply and Demand Forecast Year Source: UxC Uranium Market Outlook, Q2 2022 • Uranium supply forecasted to be insufficient to meet demand from mid-2020’s www.silex.com.au 25
Slide 27: Uranium Price – Price Recovery Underway
Uranium Price – Price Recovery Underway For personal use only Long-Term Uranium Base Price Forecast Year Source: UxC Uranium Market Outlook, Q2 2022 • UxC forecasts mid-case term uranium price ~$60/lb by 2025 and ~$77/lb by 2030 • Spot price currently ~$50/lb (as at 3 June 2022) – up from a low of ~
Slide 28: 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 29: Emerging Enrichment (SWU) Supply Opportunity for GLE
Emerging Enrichment (SWU) Supply Opportunity for GLE For personal use only Base Case Uncovered Demand Forecast for LEU Supply Uncovered U.S. Requirements Year Source: UxC Enrichment Market Outlook, Q1 2022 • Forecast uncovered US SWU demand from 2027 is in excess of ~7 million SWU per year • Signifi
Slide 30: Zero-Spin Silicon for Quantum Computing
For personal use only Zero-Spin Silicon for Quantum Computing www.silex.com.au 29
Slide 31: 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 32: 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 33: 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 of up to 5 kgs per economic supply of high purity 2023 year, anticipated to increase ZS-Si over the next decade Commercial Z
Slide 34: Summary
For personal use only Summary www.silex.com.au 33
Slide 35: Summary
Summary For personal use only GLE’s path to market focused on the Paducah opportunity - large, cost effective uranium production project, also capturing significant value in the contained conversion component Consideration of accelerating deployment of SILEX uranium enrichment technology and GLE’s c
Slide 36: Thank you
For personal use only Thank you 35