SLX 6.21% $5.13 silex systems limited

Scaggs - as GLE have said additional funds could potentially...

  1. zog
    2,883 Posts.
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    Scaggs - as GLE have said additional funds could potentially speed up development, but the advantage may be limited.
    1. By taking a longer period you can potentially use your best people and aviod the communication problems that are inevitably present in a lager team.
    2. There is the old adage that one woman takes 9 months to have a baby by putting two women on the job you do not cut the time down to 4½ months - some tasks take whatever time it takes. I would guess that if GLE are saying 2025 for the demo system it's unlikely to be brought forward too much (maybe a year). IMO the main saving in timescales could be starting on PLEF Front End Engineering design (FEED), funds raising (i.e a US guaranteed loan application) and regulatory approvals (EPA, NRC etc) prior to demonstration in 2025.

    Tim Gitzel has said (ann 31/1/21) "While there are still a number of development milestones before this technology could be commercialized, we believe it has excellent potential to expand Cameco’s reach in the nuclear fuel cycle in the future, building on the existing world-class assets and capabilities we already possess in uranium production, refining, conversion and fuel fabrication.

    This leads me to think that Cameco is keen to resolve the "development milestones" before spending a lot on PLEF "commercialization".

    The silex announcement of 1/2/21 also says:

    "Silex and Cameco have also executed several additional documents which provide terms for the governance of GLE and an option for Cameco to purchase an additional 26% interest in GLE, potentially taking its interest to 75% and Silex’s interest to 25%. This option can be exercised by Cameco from two years after MIPA closing (i.e.from 31 January 2023) up until the date 30 months after the technology is satisfactorily demonstrated at full commercial pilot scale (anticipated to be in the mid-2020’s). The option transaction will be based on a fair market valuation of GLE"

    Assuming that the demonstration takes place in 2025 this gives Cameco a window of opportunity from 31 January 2023 to 30 months after the 2025 demonstration (i.e 2028) to take on their additional 26% of GLE; my guess is that they are going to wait for the "satisfactorily demonstrated at full commercial pilot scale" before they seriously invest in PLEF (this could all change if the uranium price rises substantially) - just my thoughts (as have previously said I prefer to be "pragmatic" rather than over optimistic in my investments).
 
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