There is a bit more about the upcoming expenditure on GLE by Cameco (49%) and hence SLX (51%) in the latest Cameco MD&A (8th Feb). The MD&A is available on:
"We also had research and development expenditures in 2023 of $21 million compared to $12 million in 2022. These expensesare related to our investment in Global Laser Enrichment LLC (GLE). See Global Laser Enrichment on page 99."
"Exploration and research & development outlook for 2024We expect exploration expenses to be about $20 million in 2024. The focus for 2024 will be on our core projects inSaskatchewan. "We expect research and development expenses to be about $37 million in 2024, primarily related to ourinvestment in GLE. See Global Laser Enrichment on page 99"
Page 99
"Global Laser EnrichmentGlobal Laser Enrichment LLC (GLE) is the exclusive worldwide licensee of the proprietary Separation of Isotopes by LaserEXcitation (SILEX) laser uranium enrichment technology, a third-generation enrichment technology. Cameco is thecommercial lead for the GLE project with a 49% interest and we hold an option to attain a majority interest of 75%. SilexSystems Ltd. (Silex Systems) owns the other 51% interest in GLE and is the licensor of the SILEX laser enrichmenttechnology and the technology lead for GLE.
Subject to completion of the technology demonstration program and its progression through to commercialization, GLE has thepotential to offer a variety of advantages to the global nuclear energy sector, including:
re-enriching depleted uranium tails leftover as a by-product of first-generation gaseous diffusion enrichment operation,repurposing legacy waste into a commercial source of uranium and conversion products to fuel nuclear reactors and aidingin the responsible clean-up of legacy tails inventories, as per GLE’s agreement with the US Department of Energy (DOE);
producing commercial low-enriched uranium (LEU) to fuel the world’s existing and future fleet of large-scale light-waterreactors (and depending on market developments, SMR’s that also require LEU-based fuel) with greater efficiency andflexibility than current enrichment technologies; and
producing high-assay low-enriched uranium (HALEU), if a market for that fuel stock develops to serve a number of smallmodular reactor (SMR) and advanced reactor designs that might be commercially deployed and require HALEU-based fuel.
Our view is that re-enriching US government inventories of depleted uranium tails into a commercial source of uranium andconversion is GLE’s lowest-risk path to the market. This opportunity is underpinned by an agreement GLE has with the DOE toupgrade depleted uranium tails leftover from DOE’s historic enrichment operations, which may help address the growingsupply gap for Western nuclear fuel supplies and services.
With the support of both Cameco and Silex Systems, GLE has accelerated its technology demonstration project activities totarget an earlier delivery of the successful demonstration of Technology Readiness Level 6 (TRL-6). TRL-6 achievement willconfirm large-scale system performance under relevant conditions (pilot-scale demonstration), which represents a major stepup in a technology’s demonstrated readiness. Of note, GLE received the second full-scale laser system module from SilexSystems last year, which was installed in GLE’s pilot demonstration facility in the US. GLE’s efforts to bring forward plannedactivities and expenditures under the technology demonstration program are intended to demonstrate TRL-6 this year. EarlierTRL-6 demonstration may provide optionality for GLE to pursue government and industry support and funding related topotential commercial deployment opportunities (LEU and, potentially, HALEU) that could precede tails re-enrichment if theright conditions exist.
Unless another commercial deployment opportunity materializes, GLE will continue its work to complete the technologydemonstration project with the potential to deploy its enrichment technology at a commercial scale in Western Kentucky underits agreement with the DOE no later than 2030. GLE’s path to commercialization depends on several factors, including but notlimited to the successful progression and completion of GLE’s technology demonstration and maturation program, a clearcommercial use case, sound market fundamentals, clarity regarding future Russian fuel imports, the ability to securesubstantial government support and funding (specifically, accelerated commercial pathways related to LEU and, potentially,HALEU are reliant on government funding) and long-term industry support"
SLX Price at posting:
$4.70 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)