Silex Systems (SLX) $8.42

Good news out from SLX yesterday with a positive conclusion to the independent validation of the SILEX laser-based uranium enrichment technology – with the review confirming that Global Laser Enrichment (GLE), the exclusive licensee of the SILEX uranium enrichment technology, has achieved TRL-6, following the completion of its large-scale enrichment demonstration program.

• TLR-6 refers to “Technology Readiness Level 6”, which is a formal milestone in the commercialisation of the Silex uranium-enrichment laser technology (and by extension, its silicon-isotope applications).

This is a complex area, but in terms of background, SLX is developing a world-first laser enrichment process for separating uranium isotopes for nuclear fuel and also silicon isotopes used in quantum computing. To track progress, Silex uses a Technology Readiness Level (TRL) framework — a scale originally defined by NASA that runs from 1 (basic research) to 9 (fully commercialised production).

Achieving TLR-6 means the technology has been successfully demonstrated in a relevant environment, beyond lab experiments. In practice for SLX, it means their full-scale pilot-cascade laser enrichment system in Kentucky, is operating and producing uranium enrichment results consistent with expectations, and the technology has moved from proof-of-concept (TRL-4/5) through pre-commercial demonstration (TRL-6). It’s the final step before pilot-plant commercial validation (TRL-7) and then production (TRL-8/9).

Reaching TLR-6 is a big inflection point – it confirms the laser-enrichment process works at an industrial scale under near-commercial conditions. It de-risks the next stages of development for both uranium and silicon applications, unlocks potential US Department of Energy support and strengthens the commercial case for the Global Laser Enrichment (GLE) joint venture with Cameco.

GLE (which is a JV between Silex and Cameco) is the first company in the world to have demonstrated such a feat.

• This is a significant milestone, which sets the company up for commercialisation in the coming years. The stock rallied ~20% early, before closing up ~9%.  We own Silex in the Emerging Companies Portfolio.