Slide 1: Silex Systems – Presentation, World Nuclear Association Symposium 2016
Silex Systems Limited A.C.N. 003 372 067 Level 8, Suite 8.01 56 Clarence Street Sydney NSW 2000 Australia Ph: +61 2 9704 8888 For personal use only Fax: +61 2 9704 8851 www.silex.com.au Silex Systems – Presentation World Nuclear Association Symposium 2016 14 September 2016 Dr Michael Goldsworthy, CE
Slide 2: The Future of the SILEX Laser Enrichment Technology
For personal use only The Future of the SILEX Laser Enrichment Technology Dr Michael Goldsworthy, CEO Silex Systems Limited 14 September 2016
Slide 3: 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 4: Silex Systems Limited
Silex Systems Limited For personal use only Silex Systems (Silex) is an advanced technology company listed on the Australian Stock Exchange, primarily focussed on the commercialisation of its innovative SILEX laser enrichment technology. © Silex Systems Limited 2016 3
Slide 5: Overview of the SILEX Technology
For personal use only Overview of the SILEX Technology
Slide 6: 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 Much higher enrichment efficiency than centrifuge – expect l
Slide 7: SILEX and Nuclear Fuel Production
SILEX and Nuclear Fuel Production For personal use only SILEX/GLE The SILEX technology can be utilized to produce: i) natural grade uranium via re-processing of tails inventories ii) enriched uranium for use as fuel in nuclear power reactors Uranium (~40%) and enrichment (~30%) comprise ~70% of
Slide 8: The Tails Re-Processing Opportunity
The Tails Re-Processing Opportunity A Tier 1 Uranium 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 operations • Approximately ~300,000 MTU are regarded as ‘high assay tails’ (over ~0.25%) ~35% ~65% • GLE’s proposal t
Slide 9: The SILEX Enrichment Process
The SILEX Enrichment Process For personal use only Natural UF6 • Technically difficult to separate U235 - 0.71% U235 high barriers-to-entry • An essential step in producing nuclear fuel for most of today’s power reactors ~10% ~90% • Nearly all enrichment is currently Separation performed with gas ce
Slide 10: 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 11: The SILEX Technology License Agreement and Commercialisation Program
For personal use only The SILEX Technology License Agreement and Commercialisation Program
Slide 12: 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 13: Commercialisation Program Background
Commercialisation Program Background For personal use only • 2006: GE signed License Agreement with Silex Systems (inventor) of Australia Technology transferred to US in 2007 under US-Australia Bilateral Treaty • 2007: GE and Hitachi partnered to form GLE – based in Wilmington, NC • 2008: Cameco b
Slide 14: 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 15: Paducah Tails Enrichment Plant Opportunity
Paducah Tails Enrichment Plant Opportunity A key bridging project to commercial deployment For personal use only • DOE selected GLE’s proposal for a commercial laser enrichment plant at Paducah in November 2013 • Enrichment of DOE tails stockpiles equivalent to a large, low cost uranium mine operati
Slide 16: 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 17: The Market Outlook – Uranium and Enrichment
For personal use only The Market Outlook – Uranium and Enrichment
Slide 18: 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 445 operable reactors currently 61 new plants under construction 170 plants planned 339 plants proposed Source: World Nuclear Association
Slide 19: UxC Market Views: Uranium Market Outlook
UxC Market Views Uranium Market Outlook For personal use only Uranium Supply and Demand Forecast Million pounds U3O8 © UxC 350 325 URM World Market 300 Demand Range 275 250 225 200 175 150 Planned Production 125 100 Existing 75 Production 50 25 Secondary Supplies (including Tails re-enrichment) 0 15
Slide 20: UxC Market Views: Enrichment Market Outlook
UxC Market Views Enrichment Market Outlook For personal use only Rest of World (ROW) Enrichment Supply and Demand Forecast Note: ROW assumes Russia covers all domestic and EU Russian reactor requirements and supplies 20% of U.S. requirements, and China covers only its domestic requirements Source: U
Slide 21: Enrichment Market Considerations
Enrichment Market Considerations For personal use only • High barriers to entry Highly restricted access to sensitive nuclear technology Only four active producers: Urenco, Areva, Tenex, China High technology hurdle – long history of failed laser enrichment programs • Important geopolitical di
Slide 22: The GLE Restructure Opportunity
For personal use only The GLE Restructure Opportunity
Slide 23: Overview of the GLE Opportunity
Overview of the GLE Opportunity For personal use only • GLE is the exclusive Licensee of the SILEX laser uranium enrichment technology Significantly higher efficiency than centrifuge, lower costs, smaller environmental footprint Inherent flexibility – can decrease/increase capacity ‘at will’, an
Slide 24: GLE Restructure Highlights
GLE Restructure Highlights For personal use only • Unique opportunity to acquire majority/minority equity interest in GLE • Heavily discounted valuation – small fraction of sunk investment to date • Profitable from first year of operation based on current economic modelling with Global Laser Enrichm
Slide 25: The GLE Business Case
The GLE Business Case Uranium and SWU Production For personal use only Global Factors: • Global growth in nuclear capacity continues with increasing world energy demand • Geo-political factors increasing vulnerability with rising influence of Russia and China • Energy security, grid stability, pollu
Slide 26: Summary and Outlook
For personal use only Summary and Outlook
Slide 27: Summary and Outlook
Summary and Outlook For personal use only 1) Game changing unique 3rd generation SILEX laser enrichment technology 2) Proven ability to enrich uranium – at an advanced stage of development 3) Efficiency and cost advantages with flexibility to decrease production 4) Support from US and Australian gov
Slide 28: Summary and Outlook: The path forward
Summary and Outlook For personal use only The path forward: Finalise the Paducah tails reprocessing opportunity agreement with the DOE Complete the GLE restructure and ramp the GLE program up with new investors Consider the DOE Loan Guarantee program for potential financing of the Paducah plan
Slide 29: 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 30: Thank you
For personal use only Thank you