Pro nuclear propaganda from Silex Systems
any investor who survived the tech boom and bust of the late 1990s would be wary of grandiose technology claims.
It is therefore mollifying that Silex’s local solar operations are also on a growth path, albeit with only a fraction of the nuclear side’s dazzling (?) potential…….
RBS Morgans analyst Scott Power says solar accounts for less than 10 per cent of the firm’s Silex valuation.
Silex Systems opts for solar exposure Tim Boreham : The Australian * July 17, 2010 WITH the climate-change debate winding its way back on the political agenda, the Lucas Heights-based Silex Systems is hedging its bets.It has dual exposure to cutting-edge uranium processing technology as well as the mass market….a subdued uranium price and a dearth of information on Silex’s nuclear progress has weighed heavily on the stock, now valued at $650 million. ……Under licence from Silex, a consortium of heavy-hitting atomic energy companies has been trialling the technology at a test facility in Wilmington, North Carolina. The consortium, Global Laser Enrichment (GLE), in April reported the so-called test loop was successful, paving the way for a full-scale plant……Silex chief executive Michael Goldsworthy says the company prefers to stay mute out of deference to the NRC. He defends the lack of disclosure on the grounds the environmental assent is only one part of the approval process (a safety review comes next).,,,,,,
any investor who survived the tech boom and bust of the late 1990s would be wary of grandiose technology claims.
It is therefore mollifying that Silex’s local solar operations are also on a growth path, albeit with only a fraction of the nuclear side’s dazzling potential.
To fill the investor information void, management’s recent commentary has focused on the solar side, which investors view as not so sexy but which offers short-term earnings potential.
Silex is the only local maker of solar panels, having acquired BP’s Homebush-based facility last year for a bargain $6.5m. The plant, which is in the process of being ramped up to annual output of 10 megawatts equivalent to 35MW, is running at full capacity.
Silex followed up with this year’s purchase of the failed Solar Systems for $20m (mainly in shares)……RBS Morgans analyst Scott Power says solar accounts for less than 10 per cent of the firm’s Silex valuation.
“But they are pretty excited about the solar business,” he says. “They could generate good revenues, but we are interested to see what sort of profit they can chalk up (given cheap imports from India and China). Let’s see how it unfolds, but so far so good.”….
For the faithful, there’s the potential of sky-high returns should laser enrichment become the global industry’s gold standard. But in the short term, it is a case of looking at the stars while trying to avoid tripping over the red ink. Silex Systems opts for solar exposure | The Australian
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