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G'day all Silex holders.
The thing about Silex shares is that there are only around 150 million shares existing.
These are very tightly held by the people who are "true believers" in the technology.
When buyers come into the market they have no choice but to pay up if they want a large number of shares.
Several years ago, when someone wanted to get on board the directors actually sold some of their shares to that party to enable them to do so.
There was also a small raising, for much the same reason, of about 6 million shares, if I remember correctly.
When it is considered, as word gets out about Silex and the deal they have with GE - HITACHI then people will want them big time.
That 150 million shares will have to cover the whole world demand at this stage.
Unless more shares are issued, the demand for shares from Australia alone will send them rocketing, let alone the US,
which is a huge market of 300 million people compared to 20 mil here.
If future dividends are paid ( please ) what are they likely to be??.
The figures I have seen, and be gentle with me as this is coming from a fairly poor memory, the current market is around $6 Billion per year for enrichment but this is expected to rise to around $15 Billion by around 2015.
Now as a very basic caculation, if GE - Hitachi capture 20% of that $15 billion market that is 3 billion dollars.
Now if I correctly understand the royalty that Silex has negotiated with GE then they will get 7% - 12% of that amount. Lets say 10% = $300 MILLION PER YEAR. Strewth!!!!
Is that $2 per share ??????. What is paid as a dividend out of that I have no idea, but these figures also do not take into account any other technology such as solar and phototonics etc.
These figures, I feel could well be conservative as the market for enrichment could easily be higher in coming years. Also as this is a totally new third generation tech, then I would expect that there is a good chance that 20% of the market for GE - HITACHI would be a minimum. I would think 40% to be more realistic.
As I understand it, as the price of uranium goes up, and most experts think that it will, then it is economical to enrich it more to offset the rise in price. Also, I understand that Silex are confident that the royalty will be more likely the full 12%.
The risk, of course, is that the testing soon to start will not be as good as hoped but I personally do not think that GE - HITACHI would have come this far down the road if they were not very convinced that it will work, and work well.

Kind regards

Lockitt