Silex Systems (SLX) $4.11

Silex, in conjunction with Cameco (CCJ US), is developing a laser technology to enrich uranium at a facility in Kentucky, US. The primary commercial application of the technology is the production of different grades of fuel for the nuclear power industry, which is licensed exclusively to Global Laser Enrichment (GLE), a joint venture comprising Silex (51%) and Cameco (49%).

• There are high hopes for this innovative technology in a world that is increasingly embracing the benefits of nuclear power, following consecutive announcements from the US tech sector about long term Nuclear power contracts, aided by the Trump Administrations nuclear renaissance rhetoric.

With any innovative technology, particularly in an area as sensitive as Uranium enrichment, the pathway is incredibly complex, and Silex has certainly shown as much, testing our patience along the way. That patience will be rewarded if the technology is shown to work effectively. They currently have an operational pilot plant in Wilmington, NC in the US which began testing late last year. Early tests prompted minor engineering tweaks to the Test Loop facility causing some delays, though we expect the technology to reach TRL-6 (Technology Readiness Level 6) in the coming months, with an independent assessment to follow. If successful, this would give the market confirmation that the technology is scalable and would likely open the door for further funding from the US government. We think it would also prompt Cameco to exercise its option to acquire an additional 26% of the GLE JV.

• The prize here is a big one and would likely revolutionise the uranium enrichment industry.

From a timeframe perspective, the Silex CEO and founder Dr. Michael P. Goldsworthy, has expressed confidence in achieving the TRL‑6 milestone by the end of 2025, with the pathway clear for a commercial facility in Kentucky by 2028.

• We remain optimistic on Silex, with multiple catalysts ahead amid an improving macro backdrop for Nuclear. Important to note, this is a high risk, high potential reward pick, but it now has with a more defined timeline.