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Date : 11/01/2023

Silex Systems (ASX: SLX): The Only ASX Tech Stock That Remained On Top Of The Game In 2022!

What Does Silex Systems Do?

Silex Systems Ltd (ASX: SLX) is an Australian company that specialises in the research and development of advanced technologies in energy, healthcare, and materials.

Silex is engaged in laser-based technology development by Silex Systems to enrich uranium. It involves using lasers to selectively excite and ionise the isotopes of uranium, which can then be separated based on their physical properties. The technology has the potential to be more energy-efficient and cost-effective compared to traditional methods of uranium enrichment, such as centrifuge or gas diffusion.

However, the development of technology has faced several challenges and delays. In 2011, Silex Systems sold its SILEX technology to GE Hitachi Nuclear Energy, which is currently being developed for potential commercial use.

ASX Tech Stocks In 2022

ASX Tech stocks endured a huge blow in 2022, and investors faced a colossal decline in valuation in their tech stocks portfolio.

A couple of variables played a significant role in the decline of ASX tech stocks. The first reason was the rising inflation rate. Soaring inflation rates was the second reason that added fuel to the S&P/ASX All Technology Index (ASX: XTX) decline.

S&P/ASX All Technology Index (ASX: XTX) is an index that shows the performance of tech stocks, and in 2022 it saw a decline of approximately 33%.

Although, certain ASX tech stocks didn’t come under fire, such as Nearmap Ltd (ASX: NEA) surged 35.9%, Computershare Ltd (ASX: CPU) is up 31%, and BrianChip Holdings Ltd is up 10.3%.

But Silex Systems Ltd (ASX: SLX) was the Top Gainer in 2022, surged with a massive number of 141%, and ended the year at $3.20. The SLX share price was gaining when other ASX stocks were losing valuation and were under enormous pressure. Silex shares are currently trading at $3.55 and has a market cap of $728.85 Million. The SLX ASX stock hit its 52-week high of $4.09 on 31 August 2022.

ASX: SLX Shares Forecast & Analysis

Learn more why Silex Systems (ASX: SLEX) is the only ASX tech stock that remained on top of the game in 2022!

Reasons For SLX Stock Surge In 2022

In 2022, the yearly Silex share price performance was much superior to that of its other ASX All Tech competitors. This created a significant gap between Silex Systems (ASX SLX) and the rest of its peers.

As the year progressed, there was an uptick in demand for nuclear power, which helped boost the SLX share price to insane levels.

The idea that nuclear power will play a significant role in the effort to curb climate change’s effects is gaining widespread support. In addition, Russia’s invasion of Ukraine has contributed another trigger to the mix as energy markets have gone into a spiral. This has resulted in increased prices across the board.

So, where exactly does Silex Systems come into play here? Since uranium is the primary fuel for nuclear power plants, the company focuses on commercialising laser technology to enrich uranium.

The business is certain that it has the sole laser-based uranium enrichment technology of the third generation that is now undergoing development for commercial use.

An estimated 80% of the cost of a reactor’s fuel bundle may be attributed to the mining and enrichment of uranium, the two most expensive parts of the nuclear fuel cycle, as reported by Silex Systems.

The first module of Silex’s full-scale laser system underwent intensive testing in August, and the company reported its success. The completion of the pilot demonstration programme is one of the company’s goals for the year 2025.

In addition, it is working towards commercialising its technology for the enrichment of silicon, which is now undergoing stage three testing.

Conclusion

Should ASX-ALX Shares be on your ‘to buy’ list?

Based on the shares forecast & analysis, Silex Systems (ASX: SLX) is indeed capturing the considerable interest of investors. The company is aiming high and is keen to achieve more significant results in 2023. The company will try to capitalise on commercialising its silicon enrichment tech and third-generation laser-based uranium enrichment tech etc. Seeing its plans for dominating the Uranium industry, it could be a strong candidate for investors that adore ASX tech stocks!

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