Ann: ZS-Si Project Update, page-23

Silex Systems Limited (ASX: SLX)

Silex Systems has developed laser technology for enriching uranium. Governments worldwide realise how difficult it will be to meet their ambitious carbon reduction targets without nuclear energy. The war in Ukraine has intensified the push for nuclear power, ending the Fukushima nuclear disaster tailwind for uranium stocks.

While most ASX tech stocks were on the chopping block in 2022, Silex shares were up dramatically, hitting a ten-year high on 22 February 2023.

Source: ASX 8 April 2023

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The reversal of the upward momentum of the share price followed the release of the company’s Half Year 2023 Financial Results. While revenues were up 77.9%, the company’s loss deepened substantially, declining 95.9% from the previous corresponding period. Immediately following that release, the company announced a capital raise.

The Silex laser uranium enrichment technology is being jointly developed with US-based Global Laser Enrichment (GLE). There are plans for a full-scale demonstration uranium production operation by the end of the decade, a timeline under review for earlier completion.

The company is also exploring the use of the technology to enrich silicon for use in quantum computing and medical radioisotopes. The Silex/GLE joint development operation recently signed its third LOI (letter of intent) with a US utility to explore areas of cooperation.

The Silex financial performance highlights the challenges of investing in a company in a race to generate sufficient revenue and lower costs to yield a profit.

Silex Financials