SLX - Silex Systems

[skc]

What now for SLX?

GE is basically pulling back funding on the company's main technology, despite having already spent hundreds of millions on the project.

You have to laugh (assuming you are not a holder) at the way the announcement is spun.

"They have put the project on hold... but hey, there was no change to the royalty structure!"

From a peak a $13.5 back in 2007/2008 to 50c today... just goes to show that there is often a huge chasm between good technology and successful commercialisation.

 

[Serpentis]

Boy, and this was my pick for the July tipping competition. Don't think I'm in with a chance any more

I was going off a CEO's letter to shareholders in late May, that confidently stated how well everything was going with all their technologies. And that the recent selldowns were simply tax selling from funds and nothing to worry about and a bounce was coming in the new year. Sounds great, buy some more and put in an early entry in the tipping competition!

Then on 30th of June they announce a strategic review, they're going to focus entirely on SILEX, and are cutting all cash-burn on their other 3 technologies and trying to license them off as soon as they can. Read between the lines and they're admitting they failed, these wonderful technologies with great prospects have been unable to get any kind of commercial interest at all, so they're stopping all work and getting what they can.


So that lovely, positive CEO's letter? Just straight up lies. I hate management that are so disingenuous like that, because it makes me question everything they've ever said, and I can no longer value the company properly. I do love the SILEX technology and still think uranium will be huge as the intermediate during the transition from fossil fuels to renewables, but I just couldn't invest any longer and sold out of all my SLX holdings in early July.

Looks like my timing was fortunate. I do think the market over-reacted a bit, but it does show that not all is blue skies ahead for the commercialisation of SILEX. At best there's just a bit more of a delay. At worst, the 'restructuring' continues, the delays start to pile on, funding starts to get questioned and SILEX is trapped in the middle in eternal limbo.

 

[So_Cynical]

WOW that hurt the super fund...i suppose i will have to get another small parcel at some point in the next few months.

 

[skc]

It's really very interesting how the market works.

Announce a cutting edge technology, even at the concept phase, will attract a lot of interest in the equity when people price in bluesky galore even when funding is a serious concern. Take AKP for example, doing some fancy high tech digital speakers... market cap $150m, but so far I've seen nothing produced but a few Youtube videos demonstrating the concept. On the other hand, you have SLX with $64m cash and a technology that works (except for market condition) and is priced at equity value of $30m.

That's the market for you. Don't look back, don't rely on facts, sell the dream.

Re-reading the last few announcements... One has to wonder if they knew something like this was coming.

 

[So_Cynical]

Re-reading the last few announcements... One has to wonder if they knew something like this was coming.

The determined down trend (selling) since late April would indicate that someone knew something...clear lift in Volume since mid May as well.

 

[So_Cynical]

110% turn around in share price over the last 6 weeks, from 31c to 64c ~ now in a halt...again looks like someone knew something was up.

 

[greggles]

After consolidating for more than a month between 19c and 22c, Silex Systems is showing signs that it might be ready to start heading north again. Up 14.63% to 23.5c so far today with an intraday high of 25c.

Yesterday the company announced that it has decided to abandon the acquisition of a majority stake in GE-Hitachi Global Laser Enrichment LLC (GLE), the exclusive Licensee of the SILEX laser enrichment technology. The SLX Board decided that there remained too many risks associated with GLE's business case, and that the investment in GLE and the ongoing expenditure that this would entail would not be in the best interests of shareholders.

Today's price action indicates that the market is relieved that SLX has gotten the GLE monkey off its back and buyers are moving back in.

 

[greggles]

One year later and SLX is finally on the comeback trail after bottoming out at 15c in December 2018.

Back in February SLX announced that it and Canadian uranium miner Cameco Corporation had signed a term sheet detailing key terms for the joint purchase from GE-Hitachi Nuclear Energy (GEH) of its 76% interest in SILEX technology licensee GE-Hitachi Global Laser Enrichment LLC (GLE).

Silex would acquire a 51% interest in GLE and Cameco would increase its interest in GLE from 24% to 49% for a deferred purchase price of US$20 million payable to GEH in four consecutive annual instalments of US$5 million, commencing after the first calendar year in which GLE achieves revenues of US$50 million.

Since then SLX has risen to a high today of 58.5c. Interestingly there has been no news since 24 June but the last week has seen the share price run up from 41c to 58.5c on above average volume. I haven't been keeping up with all the announcements but am wondering if this is an anticipation of something?

 

[Dona Ferentes]

gee whiz, that's looking good:

12 month chart:

but there again:
Since inception, a graveyard of abandoned dreams

(never Held)

 

[Dona Ferentes]

According to the SLX update, the US Nuclear Regulatory Commission will provide “stand-alone Facility Clearance” for GLE, the GE-Hitachi Global Laser Enrichment. This will effectively enable GLE to operate under new ownership as a foreign-owned entity.

The approval is subject to the closure of Silex’s Membership Interest Purchase Agreement that was executed in December 2019. The joint agreement was signed between Silex, Cameco Corp and GE-Hitachi Nuclear Energy. Should all go to plan, the agreement will result in Silex and Cameco owning 51% and 49% stakes respectively in GLE.

Assuming continued positive outcomes regarding the US Government’s approvals over the coming weeks, the transaction is expected to be completed early this year.

Silex CEO Dr Michael Goldsworthy commented on the milestone, stating:

The granting of the GLE Facility Clearance is the key step in gaining full US Government approvals for the transaction. We anticipate the remainder of this process to be concluded in the coming weeks, as recently disclosed. The GLE restructure has been a lengthy and challenging process, but we are now cautiously excited to be within reach of the finish line.

 

[Garpal Gumnut]

According to the SLX update, the US Nuclear Regulatory Commission will provide “stand-alone Facility Clearance” for GLE, the GE-Hitachi Global Laser Enrichment. This will effectively enable GLE to operate under new ownership as a foreign-owned entity.

The approval is subject to the closure of Silex’s Membership Interest Purchase Agreement that was executed in December 2019. The joint agreement was signed between Silex, Cameco Corp and GE-Hitachi Nuclear Energy. Should all go to plan, the agreement will result in Silex and Cameco owning 51% and 49% stakes respectively in GLE.

Assuming continued positive outcomes regarding the US Government’s approvals over the coming weeks, the transaction is expected to be completed early this year.

Silex CEO Dr Michael Goldsworthy commented on the milestone, stating:

It would appear it is set for another run.

Seemingly it is the talk in every waiting room of every STI clinic in Rose Bay and on the North Shore.

gg

 

[Dona Ferentes]

It would appear it is set for another run.

gg

Could well happen: Had a run in Sept, based on renewed interest in Uranium in the USA plus, I surmise, on the news of the Zero-Spin Silicon for quantum computing flurry, announcing the Prototype Plant start.

So, what to do when the run takes the Sp from 90c to $1.90 in just a few weeks? Why, raise some fresh money, of course.
Pulled in $33 million placement at $1.27 per share
• Strong interest from high quality domestic, international and uranium specialist institutions
... plus $7 million from the SPP

Silex will use the proceeds from the Placement and SPP for the following purposes:
• Advancement of the commercial pilot demonstration of the SILEX uranium enrichment technology in the USA at GLE’s Test Loop facility;
• Assessment and potential development of opportunities for advanced nuclear fuel production with GLE (e.g. HALEU fuel for next-generation Small Modular Reactors);
• Scale-up of Zero-Spin Silicon production capacity – a key enabling material for silicon quantum computing;
• Develop additional applications of the SILEX technology (e.g. medical isotopes); and
• General working capital requirements and strengthen the Company’s balance sheet.

 

[Dona Ferentes]

and I just look at Weekend AFR, and they have dropped in another story (delivered to the Ross River assommoir quicker than to my grungy digs, it would seem)

For the past 20 years, Simmons, a Scientia Professor at the University of NSW and director of Silicon Quantum Computing (SQC), has been at the forefront of research in quantum computing. But now the rubber is finally starting to hit the road – or rather, the silicon is.

ASX-listed Silex Systems is about to start work building a pilot plant that will produce a highly specialised form of silicon that is a key ingredient in the specialist computer chips Simmons needs to put her quantum algorithms into action.

.... Silex chief executive Michael Goldsworthy, himself a physicist, describes the government’s announcement as a down-payment on Australia’s ability to lead the world in quantum computing manufacturing.

“There’s a lot of competition and if you fall behind, just for a year or two, then you could lose that advantage for good,” he says. “It’s very important that we maintain and accelerate.”

...... it’s a mistake to assume that the required hardware will simply appear. SQC has made the decision to develop every part of its tech stack in-house.

“We realised that realistically you have to build it yourself first to figure out how it works,” Simmons says. “The thing that I’ve really learned is that manufacturing is not forgiving. It’s a hard slog, it’s real dedication and precision, and you’ve got to keep going back and back and back to get it working reproducibly every time.” ....

‘You just cannot stop’: Quantum computing becomes a reality

For the past 20 years, Michelle Simmons has been at the forefront of research in quantum computing. But now the rubber is finally starting to hit the road – or rather, the silicon is.

www.afr.com

 

[Sean K]

• Strong interest from high quality domestic, international and uranium specialist institutions
... plus $7 million from the SPP

Why is it always the 'high quality' institutions involved with these things?

 

[Dona Ferentes]

Why is it always the 'high quality' institutions involved with these things?

so the Kennas Super Fund didn't get a call?

This is the first time I have seen this:
The SPP closed on Friday, 22 October 2021 with over 1,000 applications received for a total of approximately $18 million, well in excess of the Company’s target of $7 million.

• the majority of applicants receiving a minimum SPP application amount of $2,000 (i.e., 1,527 shares at the issue price of $1.31); and
• after the distribution of the minimum amount, the remaining SPP application amount has been allocated on a proportional basis...

Not the method for dealing with oversubscriptions, but the pricing discrepancy with earlier money raised:
• Silex has completed (on 27 Sep) a $33 million placement at $1.27 per share.

 

[Garpal Gumnut]

so the Kennas Super Fund didn't get a call?

This is the first time I have seen this:
The SPP closed on Friday, 22 October 2021 with over 1,000 applications received for a total of approximately $18 million, well in excess of the Company’s target of $7 million.

• the majority of applicants receiving a minimum SPP application amount of $2,000 (i.e., 1,527 shares at the issue price of $1.31); and
• after the distribution of the minimum amount, the remaining SPP application amount has been allocated on a proportional basis...

Not the method for dealing with oversubscriptions, but the pricing discrepancy with earlier money raised:
• Silex has completed (on 27 Sep) a $33 million placement at $1.27 per share.

Just because Chanticleer gets a few bucks for a promo in the AFR does not mean it is going anywhere for us ASF punters.

It may surge on Monday. It may not. It may be too late for us.

The lady scientist, CEO whatever she is, was spinning her spiel in the AFR. Those who are in are in, including some politicians' aunties and mistresses/toyboys, as it got some Government money, and they would have been alerted with those increased volume green bars last week..

To be honest for every one of these hitting the decks every five years in Australia, there would be one a week in the USA, not counting what the cousins in China and Russia are up to.

It all seems premature to me.

They haven't mixed the concrete yet, let alone pour the bloody stuff. 2028, 2030, gimme a break.

We could all be dead by then.

Aa good recession would see these trade for 30c max.

gg

 

[Garpal Gumnut]

Oh to be an insider.

Like a bride’s nightie this morning. ( Do brides still wear nighties?)

gg

 

[frugal.rock]

Booyah
Silicon, not just for implants.

 

[qldfrog]

Booyah
Silicon, not just for implants.

View attachment 143657

Damned system sold yesterday at 2.25..nice profit but far too early exit.
My loss, your win...

 

[Sean K]

Is this on the back of the US not going to take enriched uranium from Russia? Should have seen that coming if the case.