Silex’s Heavy Investment in Uranium Tech Keeps Losses High Despite Revenue Gains

Financial Performance Highlights

Silex Systems Limited has released its half-year financial results for the period ending 31 December 2025, revealing a notable increase in revenue alongside a modest improvement in its net loss position. The company recorded revenue from ordinary activities of $14.2 million, more than doubling the previous corresponding period's $6.7 million. This uplift was primarily driven by a $7.6 million milestone payment from its joint venture partner, Global Laser Enrichment LLC (GLE), following the achievement of a key technology readiness level milestone in October 2025.

Despite this revenue growth, Silex reported a net loss of $17.9 million, a slight improvement from the $18.1 million loss in the prior period. The persistent loss reflects ongoing investment in the commercialisation and maturation of its SILEX laser enrichment technology, with Silex’s 51% share of GLE’s net loss increasing to $24.2 million. Foreign exchange headwinds also weighed on results, with a $0.6 million loss compared to a $3.0 million gain in the previous half-year.

Strengthened Balance Sheet and Capital Position

The company’s balance sheet shows a robust cash position of $201.7 million, a substantial increase from $80.6 million at the end of June 2025. This was largely due to a successful institutional placement and Share Purchase Plan that raised $142.7 million net of transaction costs. Silex holds no corporate debt, positioning it well to fund ongoing development activities.

Net cash inflows from operating activities rose to $6.0 million, bolstered by the milestone revenue receipt, while investments in the joint venture increased to support GLE’s expanding technology development efforts. The company’s total assets stood at $224.8 million, including $11.6 million in investments accounted for under the equity method, reflecting its stake in GLE.

Progress on Technology Commercialisation and Strategic Partnerships

Silex continues to focus on commercialising its SILEX laser enrichment technology, which is critical to the global nuclear fuel supply chain and clean energy initiatives. The technology is being developed jointly with GLE, a venture co-owned by Silex and Cameco Corporation. Beyond uranium enrichment, Silex is advancing projects in silicon-28 enrichment for quantum computing and medical isotope production, aiming to leverage its core laser technology capabilities.

In a significant development after the reporting period, GLE was notified by the U.S. Department of Energy of its selection for a potential award of up to US$28.5 million to advance next-generation laser-based uranium enrichment technology. This award, subject to final negotiations, underscores the strategic importance and potential of the SILEX technology in the evolving nuclear fuel landscape.

Outlook and Risks

While the company’s financials show progress, the commercial success of the SILEX technology remains contingent on multiple factors including technology maturation, regulatory approvals, market demand for enriched uranium, and geopolitical dynamics. Future capital calls for GLE’s operations beyond the first quarter of 2026 are pending approval, introducing some uncertainty around funding and project timelines.

Silex has not declared any dividends, reflecting its prioritisation of reinvestment into technology development and commercialisation efforts. Investors will be watching closely how the company navigates these challenges and capitalises on emerging opportunities in nuclear fuel and advanced materials.