Silex Systems Limited · ASX:SLX
Silex Systems — Shareholder Meeting (November 2016)
42 slides from Silex Systems's shareholder meeting presentation, Nov 15, 2016
Slide 1: 2016 Annual General Meeting
For personal use only Silex Systems Limited 2016 Annual General Meeting (ASX: SLX) (OTCQX: SILXY) Dr Michael Goldsworthy CEO/Managing Director 15 November 2016
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: 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
Slide 4: Silex Systems Limited
Silex Systems Limited For personal use only Silex Systems (Silex) is an advanced technology company focussed on the commercialisation of its innovative SILEX laser enrichment technology for nuclear fuel production 2016 AGM © Silex Systems Limited 2016 4
Slide 5: 2016 Highlight
For personal use only 2016 Highlight Agreement signed with the US Department of Energy for Paducah Tails Enrichment Opportunity
Slide 6: The Paducah Tails Enrichment Opportunity
The Paducah Tails Enrichment Opportunity Agreement signed between GLE and the DOE For personal use only • 10 November 2016: Agreement signed between the US Department of Energy (DOE) and Global Laser Enrichment (GLE) – licensee of the SILEX technology - for the sale of depleted tails inventories • D
Slide 7: The Year in Review
The Year in Review For personal use only • The Company’s primary focus during the year has been on continuing the commercialisation of our unique SILEX technology in conjunction with US-based licensee Global Laser Enrichment (GLE) • A Term Sheet was executed with GE-Hitachi (GEH) on 29 April 2016 pr
Slide 8: Overview of the Nuclear Fuel Industry
For personal use only Overview of the Nuclear Fuel Industry
Slide 9: Global Nuclear Power is Growing
Global Nuclear Power is Growing For personal use only Source: ExxonMobil: The Outlook for Energy: A View to 2040 Source: U.S. EIA: International Energy Outlook 2016 2016 AGM © Silex Systems Limited 2016 9
Slide 10: Advantages of Nuclear Power
Advantages of Nuclear Power For personal use only Nuclear addresses long-term reliability and security of supply issues • Low generation cost per unit (i.e. $/MWh or c/kWh) • Electricity generated is dispatchable on demand & easy to vary up/down • Power price stability - fuel is a low proportion of
Slide 11: 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 448 operable reactors currently 58 new plants under construction 167 plants planned 345 plants proposed Source: World Nuclear Association
Slide 12: Long-Term Need for Enriched Uranium
Long-Term Need for Enriched Uranium For personal use only >90% of all current and potential new technology nuclear reactor plants require enriched uranium fuel Source: EPRI 2016 AGM © Silex Systems Limited 2016 12
Slide 13: The Next Nuclear Reactors
The Next 100 Nuclear Reactors…. For personal use only Next 100 New Reactor Types Details on the Next 100 Reactors FBR/HTR/LMR BWR 4% • 103 GWe of nuclear power generation to 2% PHWR commence operations over next 10 years 7% • 90 reactor units with generating capacity of 97 GWe require Enriched Urani
Slide 14: Risks to Nuclear Power Growth
Risks to Nuclear Power Growth For personal use only Nuclear Capacity Forecast Scenarios GWe © UxC High Case Assumptions: 650 625 600 Longer operations of existing units 575 550 Faster pace of new construction 525 500 Larger capacity of new units 475 450 425 Low Case Assumptions: 400 375 350
Slide 15: Overview of the SILEX Technology
For personal use only Overview of the SILEX Technology
Slide 16: Enrichment Technology Overview
Enrichment Technology Overview For personal use only • 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 On
Slide 17: SILEX and Nuclear Fuel Production
SILEX and Nuclear Fuel Production For personal use only 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 Uranium (~45%) and enrichment (~25%) comprise ~70
Slide 18: The Tails Re-Enrichment Opportunity
The Tails Re-Enrichment Opportunity A Tier 1 Uranium Production Asset For personal use only 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% ~
Slide 19: The SILEX Enrichment Process
The SILEX Enrichment Process For personal use only Natural UF6 0.71% U235 • Enrichment technically difficult - high barriers-to-entry • Nearly all enrichment is currently ~10% ~90% performed with gas centrifuge technology Separation • SILEX laser technology inherently higher efficiency lower costs e
Slide 20: 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 21: The SILEX Technology License Agreement and Commercialisation Program
For personal use only The SILEX Technology License Agreement and Commercialisation Program
Slide 22: SILEX License Agreement Overview
SILEX License Agreement Overview For personal use only Technology License Agreement with Global Laser Enrichment (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
Slide 23: Commercialisation Program Background
Commercialisation Program Background For personal use only 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
Slide 24: GLE's Phased Approach to Commercialisation
GLE’s Phased Approach to Commercialisation For personal use only • Phase I: ‘Technology Validation’ successfully completed in 2013 with the Test Loop Facility • Phase II: ‘Economic Validation’ is the focus for the next few years, including demonstration of full scale commercial production capability
Slide 25: Paducah Tails Enrichment Plant Opportunity
Paducah Tails Enrichment Plant Opportunity The path to commercialisation For personal use only • Agreement between GLE and DOE signed 10 November 2016 involving the Paducah Laser Enrichment Facility • Enrichment of DOE tails stockpiles equivalent to a large, low cost uranium mine operating for at le
Slide 26: Wilmington Enrichment Plant Opportunity
Wilmington Enrichment Plant Opportunity NRC License obtained in 2012 For personal use only • 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-
Slide 27: The Market Outlook - Uranium and Enrichment
For personal use only The Market Outlook – Uranium and Enrichment
Slide 28: UxC Market Views: Uranium Market Outlook
UxC Market Views Uranium Market Outlook For personal use only Uranium Supply and Demand Forecast (Tails re-enrichment included) Years Source: UxC Uranium Market Outlook, Q3 2016 • Uranium supplies remain excess to market demand, under the mid-case scenario, until ~2023 • Secondary uranium supplies i
Slide 29: UxC Market Views: Enrichment Market Outlook
UxC Market Views Enrichment Market Outlook For personal use only Base Case Enrichment Supply and Demand Forecast Years Source: UxC Enrichment Market Outlook, Q3 2016 • Base case forecast shows market back in balance ~2024 and then going into supply shortage • By mid-2020s, additional SWU supply will
Slide 30: UxC Market Views: Base Case Uncovered Demand Forecast
UxC Market Views Enrichment Market Outlook For personal use only Base Case Uncovered Demand Forecast Years Source: UxC Enrichment Market Outlook, Q3 2016 • Current uncovered demand ~30MSWU in 2025 with ~10MSWU in the US market • Potential for GLE SWU supply in the US viewed favorably by US utilities
Slide 31: Enrichment Market Considerations
Enrichment Market Considerations SWU Suppliers to 2020 For personal use only Enrichment Suppliers Million SWU 70 60 50 40 30 20 10 0 2008 2014 2020 AREVA Russia Urenco USEC/Centrus CNNC Source: UxC September 2016 • Russia’s capacity increases in 2014 (end of the HEU Agreement) but declines slightly
Slide 32: Enrichment Market Considerations
Enrichment Market Considerations For personal use only • High barriers to entry for new players Highly restricted access to sensitive nuclear technology Only four producers: URENCO, AREVA, Tenex, China (~90% state owned in total) High technology hurdle – long history of failed laser enrichment
Slide 33: GLE Restructure Overview
GLE Restructure Overview For personal use only • A restructure of GLE was precipitated when GEH disclosed on 18 April 2016 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 excl
Slide 34: GLE Restructure Overview
GLE Restructure Overview For personal use only Restructure 2016 AGM | © Silex Systems Limited 2016 34
Slide 35: Translucent Inc - cREO Technology
For personal use only Translucent Inc – cREO™ Technology
Slide 36: The Translucent - IQE Agreement
The Translucent – IQE Agreement For personal use only • 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 semicondu
Slide 37: cREO - IQE Development Program
cREO™ - IQE Development Program For personal use only • 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 volu
Slide 38: cREO - Initial Applications
cREO™ - Initial Applications For personal use only 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 d
Slide 39: cREO - IQE Commercialisation Outlook
cREO™ - IQE Commercialisation Outlook For personal use only • The technology is protected by a wide ranging IP portfolio consisting of 82 granted patents and 4 additional patent applications • cREO™ technology has the potential to be applied across all six of IQE’s key market sectors • Initial targe
Slide 40: Summary and Outlook
For personal use only Summary and Outlook
Slide 41: Summary and Outlook
Summary and Outlook For personal use only • Unique third generation SILEX laser enrichment technology at advanced stage of development • Inherently high efficiency provides cost advantages with increased operational flexibility • Restructure of GLE gaining traction with several parties undertaking d
Slide 42: Thank you
For personal use only Thank you