The market may be sinking today but that hasn't stopped Silex Systems Ltd (ASX: SLX) shares from racing higher.
In afternoon trade, the ASX uranium stock is up 16% to $4.90.
Why is this ASX uranium stock outperforming?
Investors have been fighting to get hold of the heavily shorted uranium technology company's shares today following the release of a very positive update.
According to the release, Global Laser Enrichment (GLE), which is the exclusive licensee of the SILEX uranium enrichment technology, has completed the large-scale enrichment demonstration testing campaign at its Test Loop facility in Wilmington, North Carolina.
The good news for shareholders is that GLE has collected extensive performance data, which provides confidence that its laser-based uranium enrichment process will achieve TRL-6 demonstration status and can be commercially deployed.
This is particularly positive as short sellers appear to have been betting on the technology failing to live up to expectations. Given this announcement, it wouldn't be a surprise if they are now buying back shares to close positions and causing a short squeeze.
What's next?
The ASX uranium stock advised that GLE will continue its demonstration program through the course of 2025, producing hundreds of kilograms of Low Enriched Uranium (LEU). It will also continue towards building a US domestic manufacturing base and supply chain to support the deployment of US domestic enrichment capacity.
It notes that the results of the large-scale demonstration are subject to assessment by an independent engineering contractor. However, GLE is expecting to receive the completed TRL6 assessment report by the end of the year.
Subject to various factors, management believes the SILEX uranium enrichment technology could become a major contributor to nuclear fuel production for the world's current and future nuclear reactor fleet. This is through the production of uranium in several different forms, including natural grade uranium as UF6, LEU and LEU+, and high-assay LEU (HALEU) for next-generation advanced reactors, including small modular reactors.
Commenting on the news, the ASX uranium stock's CEO and managing director, Michael Goldsworthy, said:
This is an important milestone for GLE, which is the only company in the world to be operating large-scale, third-generation laser-based enrichment technology under plant-like conditions, that is, at TRL-6 status. We commend the efforts of the GLE and Silex teams, who have worked tirelessly to advance the SILEX uranium enrichment technology much closer to commercial readiness. This is an exciting time for Silex and GLE, and we look forward to receiving the independent assessment report later this year.
The post Guess which ASX uranium stock is surging 16% higher today appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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