Reading Time: 5 Mins
By Team Ace Investors
COMPANY OVERVIEW
Silex Systems Limited (“Silex” or the “Company”) ) is a technology commercialisation company whose primary asset is the SILEX laser enrichment technology, originally developed at the Company’s technology facility in Sydney, Australia. The SILEX technology has been under development for uranium enrichment jointly with US-based exclusive licensee Global Laser Enrichment LLC (GLE) for a number of years. The success of the SILEX uranium enrichment technology development program and the proposed Paducah commercial project remain subject to a number of factors, including the satisfactory completion of the TRL-6 pilot demonstration program, nuclear fuel market conditions, industry and government support, project feasibility, and commercial plant licensing, and therefore remain subject to associated risks. Silex is also at various stages of development of additional commercial applications of the SILEX technology, including the production of ‘Quantum Silicon’ for the emerging technology of silicon-based quantum computing. The ‘Quantum Silicon’ project remains dependent on the outcomes of the project as well as the successful development of silicon quantum computing technology by third parties, and is therefore subject to various risks. Silex is also conducting earlystage research activities in its Medical Isotope Separation Technology (MIST) Project, which is also subject to various risks and unknowns. The commercial future of the SILEX technology in application to uranium, silicon, medical, and other isotopes is therefore uncertain, and any plans for commercial deployment are speculative.
On 7th August 2025, the Company has successfully secured firm commitments for a $130 million institutional placement at $3.90 per share, issuing around 33.3 million new shares with strong backing from both existing and new global investors. Together with existing cash of $69.6 million, the proceeds will primarily fund the commercialisation of its uranium enrichment technology in the US via licensee Global Laser Enrichment (GLE), while a smaller portion will support new commercial opportunities, balance sheet strengthening, and general corporate purposes. Post-placement, Silex expects to be fully funded through FY2028, with cash reserves of approximately $214.6 million.
Source – Company’s Report
INVESTMENT RATIONALE
- GLE’s Commercialisation of SILEX Uranium Enrichment Technology – Global Laser Enrichment (GLE), a joint venture between Silex Systems (51%) and Cameco Corporation (49%), with ~100 employees and contractors, is focused on deploying the SILEX uranium enrichment technology in the US through facilities in North Carolina and Kentucky. The Paducah Laser Enrichment Facility (PLEF) in Kentucky, strategically located near the former DOE gaseous diffusion plant, has the potential to process depleted tails equivalent to an "above-ground uranium mine," with production capacity of up to 5 million pounds of uranium annually for over 30 years. GLE’s strategy, termed the “Triple Opportunity,” targets production of all three grades of nuclear fuel, supported by strong US government legislation and funding programs. The Wilmington, NC headquarters and test loop facility currently conducts large-scale enrichment testing, marking a key technology de-risking milestone (TRL-6), and also houses a classified manufacturing facility. Backed by over US$600 million in cumulative investment, GLE is well-positioned as a next-generation US-based uranium enrichment provider.
- Strategy is Focused on Maximising Shareholder Value - Silex’s strategy for maximizing shareholder value revolves around two distinct value propositions related to its interest in Global Laser Enrichment (GLE). Firstly, Silex currently holds a 51% equity stake in GLE with a minimum commitment to retain at least 25%. Its joint venture partner, Cameco, holds a call option to acquire an additional 26% at fair market value. This option window opened on February 1, 2023, and remains valid for 30 months after the successful TRL-6 demonstration. This ensures that Silex maintains a significant equity position and potential role as a nuclear fuel supplier regardless of Cameco’s decision. Confidential discussions are also ongoing with Cameco regarding the possible sale of this 26% stake.
Secondly, Silex holds rights to perpetual royalties from GLE under its exclusive technology license agreement. These royalties range from 7% to 12% of GLE’s enrichment revenues, with potential annual royalties of around US$90 million based on current prices and operations. Importantly, Silex’s uranium enrichment technology is classified by both the Australian and US governments, ensuring no patent disclosures and no sunset on intellectual property. Furthermore, the technology remains protected under strict security mandates, reinforcing its long-term strategic value. Both propositions—equity ownership and perpetual royalties—position Silex shareholders to benefit significantly as GLE advances its operations.
Source – Company’s Report
- Unique Strategic Leverage in Quantum Technology Markets – Beyond uranium enrichment, Silex is advancing two additional high-impact technology projects. The Q-Si Production Project is progressing with the construction of its first silicon production module, aimed at creating a secure supply chain for the emerging global silicon quantum computing industry. Meanwhile, the early-stage MIST Project focuses on validating processes for enriching Ytterbium-176 (Yb-176), which is used in producing Lutetium-177 (Lu-177), a key radioisotope in cancer treatment.
ACE’s RECOMMENDATION
The Company is making strong progress toward the commercialisation of its pioneering third-generation uranium enrichment technology, known as SILEX. This unique and innovative laser-based process is classified by both the US and Australian Governments due to its strategic importance and potential to reshape the global nuclear fuel supply chain. Positioned at the intersection of growing global demand for clean energy and increasing focus on Net-Zero targets, Silex is well-leveraged to benefit from accelerating nuclear energy adoption and the US Government’s concerted efforts to revitalise domestic nuclear capability while advancing energy security.
At the core of its US strategy, Silex operates through Global Laser Enrichment (GLE), a joint venture with Cameco Corporation, where it holds a 51% interest. This JV not only provides Silex exposure to equity returns but also the potential to secure perpetual licence royalties from the deployment of the SILEX technology. A major milestone ahead is the large-scale technology demonstration at TRL-6, scheduled for 2025, which represents a critical step in de-risking and validating the pathway to commercialisation. This initiative is also expected to attract substantial US Government support given its alignment with national energy and security priorities.
Further strengthening its long-term growth trajectory, GLE has an exclusive agreement with the US Department of Energy (DOE) that grants access to up to 200,000 tonnes of depleted uranium tails. This agreement effectively provides a feedstock equivalent to a multi-decade “above-ground uranium mine,” securing reliable material for at least 30 years of commercial operations. Beyond uranium enrichment, Silex is also pursuing adjacent growth opportunities in high-value fields such as enriched silicon for quantum computing and medical isotope enrichment. These initiatives highlight the company’s broader innovation strategy and diversification potential, offering shareholders exposure to transformative technologies across multiple industries. We recommend the stock as BUY at closing price of $4.79 .
Disclaimer: Ace Investors Pty Ltd (ABN 70 637 702 188) authorized representative of MF & CO. ASSET MANAGEMENT PTY LTD (AFSL No.520442). Ace Investors has made all efforts to warrant the reliability and accuracy of the views and recommendations articulated in the reports published on its websites. Ace Investors research is based on the information known to us or which was obtained from various sources which we believe to be reliable and accurate to the best of its knowledge. Ace Investors provides only general financial information through its website, reports and newsletters without considering the financial needs or investment objectives of any individual user. We strongly advocate that you seek advice, from your financial planner, advisor or stock broker, on the merit of each recommendation before acting on any recommendation for their specific financial circumstances and realize that not all investments will be suitable for all subscribers. To the scope permitted by law, Ace Investors Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Ace Investors Pty Ltd hereby limits its liability, to the scope permitted by law to resupply the services. The securities and financial products we study and share information on, in our reports, may have a product disclosure statement or other offer document associated with them. You should obtain a copy of these before making any decision about acquiring any security or product. You can refer to our Financial Services Guide.