Silex Systems Limited · ASX:SLX
Silex Systems — Euroz Hartleys Rottnest Institutional Conference 2023
39 slides from Silex Systems's conference presentation, Mar 8, 2023
Slide 1: Investor Presentation announcement
For personal use only Investor Presentation 8 March 2023 Silex Systems Limited (Silex) (ASX: SLX) (OTCQX: SILXY) is providing an updated Investor Presentation to support upcoming Investor Relations activities, including a presentation by Dr Michael Goldsworthy, Silex CEO at the Euroz Hartleys Rottne
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 8 March 2023 www.silex.com.au 1
Slide 3: Forward Looking Statements and Risk Factors
Forward Looking Statements and Risk Factors For personal use only About Silex Systems Limited (ASX: SLX) (OTCQX: SILXY) Silex Systems Limited ABN 69 003 372 067 (Silex or Company) is a technology commercialisation company whose primary asset is the SILEX laser enrichment technology, originally devel
Slide 4: Our Mission: commercialise SILEX laser enrichment technology
Our Mission: to commercialise the unique SILEX laser enrichment technology for application to: For personal use only Uranium production Silicon enrichment Other potential markets and enrichment (silicon quantum computing) (e.g. medical isotopes) (nuclear power) Our strategy is focused on extracting
Slide 5: Investment Focus – Strong ESG Credentials
Investment Focus – Strong ESG Credentials For personal use only Investment in three key growth industries with strong ESG credentials: 1) Nuclear Power for Clean Energy – potential to support Net-Zero 2050 targets with carbon-free electricity production 2) Next Generation Quantum Computing – expecte
Slide 6: Focus on Commercialisation
Focus on Commercialisation For personal use only Uranium production and enrichment (nuclear power) • SILEX uranium technology licencee Global Laser Enrichment (GLE) is actively progressing towards commercialisation • US-based GLE under JV ownership since 2021: 51% by Silex and 49% by Cameco Corporat
Slide 7: Acceleration of GLE's CY2023 Activities for SILEX technology
Acceleration of GLE’s CY2023 Activities for SILEX technology For personal use only GLE has unique potential to address the ‘Triple Opportunity’ emerging in the global nuclear fuel supply chain: • GLE joint venture owners Silex (51%) and Cameco (49%) have agreed to a plan and budget for CY2023 that a
Slide 8: Nuclear Fuel Production and Emerging Threats
Nuclear Fuel Production and Emerging Threats For personal use only The Nuclear Fuel Supply Chain Emerging Threats to the Global Nuclear Fuel Supply Chain: - Supply chain risks exposed by over-dependence on Russian-sourced nuclear fuel - Western supply - curtailments and under-investment in resources
Slide 9: GLE's Potential Timelines for Commercialisation
GLE’s Potential Timelines for Commercialisation of SILEX technology1 For personal use only www.silex.com.au 8
Slide 10: GLE Value Proposition for Silex
GLE Value Proposition for Silex* For personal use only 1) GLE Equity – Minimum 25%: • Currently 51% - potentially 25% post-Cameco Option, with payment for 26% at fair market value • Significant equity stake in GLE as a potential major nuclear fuel supplier • Attractive business case with Triple Oppo
Slide 11: Significant Additional Opportunities
Significant Additional Opportunities For personal use only Silicon enrichment Other potential markets (silicon quantum computing) (e.g. medical isotopes) • SILEX technology proven capable of producing highly enriched silicon • Newly commenced Medical Isotope project aiming to develop and in the form
Slide 12: Nuclear Power Outlook – Key Drivers for Growth of Enrichment
For personal use only Nuclear Power Outlook – Key Drivers for Growth of Enrichment of Nuclear Fuel www.silex.com.au 11
Slide 13: Nuclear Power Imperatives
Nuclear Power Imperatives For personal use only Response to Climate Change: • Population growth and industrialisation surging increase in energy demand • Urgent climate action (Net-Zero 2050) driving rapid global energy transition • De-carbonisation and electrification increasing importance of nucle
Slide 14: 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 Net-Zero 2050 Low Cost 24/7 Reliability LCOE1 ~ US$70/MWHr Base Load Stability Nuclear Power Highest Capacity Factors Cl
Slide 15: Significant Nuclear Power Growth to achieve Net-Zero 2050
Significant Nuclear Power Growth to achieve Net-Zero 2050 For personal use only Nuclear Generation Growth Scenarios Conventional Large-Scale Reactor Population TWh 7,000 Net Zero 226% 6,000 Accelerated 5,000 New Momentum 186% 4,000 127% 3,000 2,000 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2
Slide 16: Nuclear Fuel Supply Chain – Emerging Threats lead to Opportunities
For personal use only Nuclear Fuel Supply Chain – Emerging Threats lead to Opportunities www.silex.com.au 15
Slide 17: US and EU Nuclear Fuel Requirements Supplied by Russia
US and EU Nuclear Fuel Requirements Supplied by Russia For personal use only Russian Share of Global EU Nuclear Fuel US Nuclear Fuel Production Capacity1 Supplied by Russia2 Supplied by Russia1,3 Uranium (U308) ~14% ~20% ~14% Conversion ~27% ~24% ~18% Enrichment (SWU) ~45% ~31% ~20% 1. WNA and UxC v
Slide 18: PLEF Opportunity may help address US Uranium Vulnerability
PLEF Opportunity may help address US Uranium Vulnerability For personal use only Uranium purchased for US nuclear power reactors, 2011 - 2021 Million pounds U3O8 equivalent US imported ~95% of Uranium purchased in 2021 Source: 2021 EIA Uranium Marketing Annual Report (Released May 2022) www.silex.co
Slide 19: Recent Nuclear Fuel Market Price Trends
Recent Nuclear Fuel Market Price Trends For personal use only Uranium (U308) Price Conversion Price Enrichment (SWU) Price US$lb US$KgU US$SWU $70.00 $45.00 $160.00 U3O8 LT U3O8 NA NA LT Spot LT SWU Spot $40.00 Conv Conv SWU $60.00 $140.00 $35.00 $120.00 $50.00 $30.00 $100.00 $40.00 $25.00 $80.00 $2
Slide 20: Triple Opportunity for GLE and SILEX Technology
For personal use only Nuclear Fuel Supply Chain – Triple Opportunity for GLE and SILEX Technology www.silex.com.au 19
Slide 21: 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 20
Slide 22: GLE's Multi-Purpose PLEF Production Plant Opportunity
GLE’s Multi-Purpose PLEF Production Plant Opportunity For personal use only The PLEF Triple Opportunity Paducah Laser Enrichment Facility (PLEF) commercial project to deploy the SILEX technology in the US: • PLEF UF6 Production: Production of up to 5 million pounds natural grade uranium (as UF6) ann
Slide 23: Nuclear Fuel Opportunities for GLE and the SILEX Technology
Nuclear Fuel Opportunities for GLE and the SILEX Technology For personal use only Potential U production ~ 5 million lbs/yr Potential SWU production Potential conversion ~ 2 million kgs/yr at least 2MSWU/yr Potential production TBD www.silex.com.au 22
Slide 24: PLEF UF6 Production Opportunity
PLEF UF6 Production Opportunity (Natural UF6 production from tails) For personal use only Target Commercial Akin to a ‘Tier 1’ Uranium Resource* Equivalent U3O8 Operation Date Based on low cost and Production Baseline: c. 2030 longevity of production Up to 5 million lbs p.a. for (with potential acce
Slide 25: GLE's Potential Timelines for Commercialisation of SILEX technology
GLE’s Potential Timelines for Commercialisation of SILEX technology1 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 Commercialis
Slide 26: Cameco Equity Option and Perpetual SILEX Technology Licence
Cameco Equity Option and Perpetual SILEX Technology Licence For personal use only Cameco Equity Option: • Current GLE JV ownership is Silex 51% and Cameco 49% • Cameco holds an option to purchase an additional 26% of GLE equity from Silex at fair market value • Window for option exercise open Februa
Slide 27: Zero-Spin Silicon for Quantum Computing
For personal use only Zero-Spin Silicon for Quantum Computing – scaling for commercial production www.silex.com.au 26
Slide 28: SILEX Zero-Spin Silicon Opportunity
SILEX Zero-Spin Silicon Opportunity For personal use only Global race to develop world’s first Quantum Computers (QCs) • QCs expected to be many times more powerful than today’s conventional computers • QCs will create new opportunities in medicine, AI, defence, cybersecurity, finance, logistics, et
Slide 29: Original SILEX Project for ZS-Si Production
Original SILEX Project for ZS-Si Production For personal use only • Project partners SQC and UNSW part of the Federally funded ‘CQC2T Centre of Excellence’ – a world leader in silicon-based QC technology development • 3-year project cost ~$8m (incl. pilot plant capex), supported by $3m Federal CRC-P
Slide 30: Scaling for Initial Commercial ZS-Si Production
Scaling for Initial Commercial ZS-Si Production For personal use only • SQC and UNSW Sydney first offtake customers as ZS-Si production scaled • Commercial production targeting two product formats: • solid elemental silicon (Polysilicon and Monosilicon) – for SQC/UNSW and other customers • gaseous s
Slide 31: SILEX Zero-Spin Silicon Production Opportunity
SILEX Zero-Spin Silicon Production Opportunity For personal use only Aim 2023 - Commercial 2024 - Commercial Establish scaled, reliable and Pilot Operation Production Scale-up economic production of high To produce initial commercial Commercial production of up purity ZS-Si in two product quantities
Slide 32: Medical Isotope Separation Technology (MIST) Project
For personal use only Medical Isotope Separation Technology (MIST) Project www.silex.com.au 31
Slide 33: Medical Isotope Separation Technology (MIST) Opportunity
Medical Isotope Separation Technology (MIST) Opportunity For personal use only Opportunity to become a vital cog in a revolution in nuclear medicine • Lutetium (Lu-177) is a breakthrough development for the diagnosis and treatment of aggressive metastatic cancers • Lu-177 has been approved in the UK
Slide 34: The Importance of Lutetium-177 in Nuclear Medicine
The Importance of Lutetium-177 in Nuclear Medicine For personal use only How Lu-177 is utilised in nuclear medicine procedures: • Lu-177 is an important radioisotope introduced only recently – now approved for several cancer treatments • Lu-177 is expected to become one of the most widely used thera
Slide 35: MIST Project for Enriched Yb-176
MIST Project for Enriched Yb-176 (Precursor to Lu-177) For personal use only 3-year, stage-gated project aims to to develop production technology to produce enriched Yb-176: • Stage 1 – Proof-of-Concept (CY2023) – TRL-3 Lab-scale verification of ‘proof-of-concept’ in a custom built test reactor • St
Slide 36: Medical Isotope Separation Technology Project: Yb-176
Medical Isotope Separation Technology Project: Yb-176 For personal use only Aim Project Outline Initial Commercial To establish process viability Stage 1: Proof of Concept - 2023 Production and production capability for Stage 2: Prototype Validation - 2024 Enriched Yb-176 (~99%) in 2026 economic pro
Slide 37: Summary
For personal use only Summary www.silex.com.au 36
Slide 38: Summary
Summary For personal use only GLE’s path to market underpinned by the PLEF UF6 project for cost effective production of natural uranium (in the form of UF6) and significant value of the contained conversion component Acceleration of CY2023 activities in the pilot demonstration project creates opport
Slide 39: Thank you
For personal use only Thank you 38
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