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SILEX Systems (ASX:SLX) has fallen -25% on Tuesday after the company missed out on a funding base from the US government’s Department of Energy.
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The DOE’s Low Enriched Uranium Request for Proposals funding program had been applied for by SILEX, and it saw the ASX-lister in the line for up to US$28 million in support, part of a larger US$900 million funding pool. But as Tuesday would have it, that isn’t to be.
Part of the sharp sell-off could be explained by what put SILEX on the radar last year: Its confirmation that its in-house laser tech can indeed refine uranium to levels needed for the nuclear industry, and, enriched as to satisfy US gov’t standards.
But with the US gov’t apparently not interested, investors are left to wonder how valuable it is for SILEX that it can enrich uranium to standard. For its part, SILEX has its eyes on other gov’t grants and continues to work towards commercialising its laser enrichment tech.
“GLE remains committed to its mission of supporting a secure, domestic nuclear fuel cycle and is actively pursuing next steps to advance the planned Paducah Laser Enrichment Facility (PLEF) and commercial deployment of its laser enrichment technology,” SILEX Systems wrote on Tuesday.
But it appears the company isn’t done chasing the DOE yet, either. SILEX will, in the weeks and months ahead, focus on re-enriching high-assay depleted uranium tails with a target of generating up to 5Mlb of uranium – a clear proof of concept demonstration. As for commercialising its lasers, SILEX is progressing a licence application under the Nuclear Regulatory Commission.
SLX last traded at $7.42/sh today.
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