William - I think you have a point on the diversion that SLX had...

William - I think you have a point on the diversion that SLX had around 2010 when they diversified into Chronologic, Solar systems and Translucent. I feel this was probably due to MG (and others in SLX including the then BoD) knew that commercial uranium enrichment was some years away and as such they spit the company's focus into "Commercial" and "R&D" segments in the hope that the "commercial" segment would be cash flow positive within 12 months (the 2010 Annual report says that Solar system should be CF +ve in this time frame). In the event concentrated solar had lots of problems (particularly the Translucent semi-conductor cells) and was undercut by cheap solar panels from China. At that time the BoD did not have sufficient checks and balances to rationally evaluate the risks). I also think that SLX felt that the enrichment market wax stable (did not account for Fukushima on 11th March 2011) and that the GEH project was on an "even keel". In the event these exploits went "pear shaped" in the 2011 - 2014 period but it was not until June 20014 (when GEH pulled out of uranium enrichment) that the "penny dropped". IMO this was a real "learning experience" for both MG and the BoD - we can all be critical after the event but things looked better in 2010/11.

To me the blessing was that the BoD reacted quickly once the "penny dropped" and thereafter focused completely on "enrichment" and "survival". Without the money raised in Dec 2010 (see HERE) , the subsequent sale of these assets (in 2014/15), the US$15m from GEH, the IQE deal (for Translucent) and the pre-sales/grant for Zero spin Si the company would likely have not survived until the Sept 2021 Capital raising. Yes: in retrospect it was a mistake to diversify but IMO an excusable one in the circumstances. Where I respect MG (and the BoD) that once they were faced with the issue they reacted quickly and ensured that our core IP to survived until the sun came out again. If the diversification (and its proceeds) had not been done then IMO we would have (at a minimum) had a highly dilutive Capital raise or more probably have to have taken the course of our competitors (LIS Tech/ASP Isotopes - then Klydon) and gone into hibernation, scrapped the test loop/Wilmington and stopped activities. In the event SLX managed to mothball the test loop, keep the core team together, secure a good deal from GEH, retain the DoE tails contract and de-risk the laser (at Lucas Heights).

They say that in retrospect everything is clear but you have to accept that no one is perfect/ To me the issue is that MG managed to recover, survive (by liquidating assets) and has (hopefully) learnt a lesson. IMO in 2010 diversification appeared attractive (particularly with government assistance for Solar systems) but once the "penny dropped" in 2014 the BoD took the best action possible and with that money avoided a problematic Capital raise - well done MG (and BoD).