lightbridge: redchip's global online ceo conference
DESCRIPTION
The nuclear energy industry has lain stagnant for over 30 years and has suffered from missteps and perception issues. Lightbridge is here to innovate and change the conversation. About: Lightbridge is a U.S. nuclear energy company based in McLean, Virginia with operations in Abu Dhabi, Moscow and London. The Company develops proprietary, proliferation resistant, next generation nuclear fuel technologies for current and future nuclear reactor systems. The Company also provides comprehensive advisory services for established and emerging nuclear programs based on a philosophy of transparency, non-proliferation, safety and operational excellence. Lightbridge's breakthrough fuel technology is establishing new global standards for safe and clean nuclear power and leading the way to a sustainable energy future. Lightbridge consultants provide integrated strategic advice and expertise across a range of disciplines including regulatory affairs, nuclear reactor procurement and deployment, reactor and fuel technology and international relations. The Company leverages those broad and integrated capabilities by offering its services to commercial entities and governments with a need to establish or expand nuclear industry capabilities and infrastructure.TRANSCRIPT
NASDAQ : LTBR
RedChip Global Online CEO Conference 17 July 2014
1
®
Safe Harbor Statement This presentation includes or incorporates by reference statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These statements include, but are not imitated to, information or assumptions about revenues, gross profit, expenses, income, capital and other expenditures, financing plans, capital structure, cash flow, liquidity, management’s plans, goals and objectives for future operations and growth. In some cases, you can identify forward-looking statements by the use of words such as “may”, “could”, “expect”, “intend”, “plan”, “seek”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “project”, “continue”, or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond our control and which could materially affect actual results, levels of activity, performance or achievements. These risks and uncertainties include, but are not limited to, the factors mentioned in the “Risk Factors” section of our most recent annual and quarterly reports on Forms 10-K and 10-Q, and other risks mentioned in our other reports filed with the Commission. The forward-looking statements contained in this presentation are made only of this date, and Lightbridge Corporation is under no obligation to revise or update these forward-looking statements.
2
The nuclear energy industry has lain stagnant for over 30 years and has suffered from missteps and perception issues.
Lightbridge is here to innovate and change the conversation.
3
By listening to utilities we saw we could solve industry issues by designing new fuel which is compatible with existing & new reactors.
The resulting solution- Lightbridge’s proprietary fuel technology- addresses the two overarching issues afflicting the nuclear industry.
Lightbridge delivers: . Improved Economics . Improved Safety
power uprates for existing pressurized water reactors
10%
power uprates for new build pressurized water reactors
30%
period between refueling outages increased from 18 to 24 months for existing pressurized water reactors
+6 months
ahead of any potential competitor due to testing and regulatory requirements
10+ yrs.
4
Lightbridge technology has been independently validated by venerable industry organizations. Numerous 3rd party analyses confirm Lightbridge fuel design:
Technology value proposition
U.S. nuclear supply chain issues and implications for Lightbridge metallic fuel
Lightbridge metallic PWR fuel evaluation of proliferation resistance properties
ANS’ Nuclear Technology journal (peer review):
Independent validation includes:
5
The world’s demand for energy is rapidly rising. Nuclear is the only clean, sustainable and reliable solution that addresses increasing base load demand.
6
Capacity Factor %
Nuclear is in position to displace coal for base load energy sources - bringing the non-emission benefits of renewables, but with reliability of delivery.
nuclear coal hydro gas wind solar 7
0
50
100
150
200
250
1200 2500
Environmental impact (CO2 lbs/MWh)
Levelized costs for Incremental Power ($/MWh) solar wind natural gas
coal nuclear Lightbridge uprate
solar
wind
nuclear
Lightbridge
gas
coal
Source: Siemens Industry Inc, EIA Annual Energy Outlook 2014, and EPRI “Program on Technology Innovation’”
8
Nuclear & coal are base load generation.
Nuclear is best suited to displace coal.
Renewables are not base load generation sources.
9
Lightbridge is advancing nuclear energy
10
11
Increases electric
generation
Improves
safety
Enhances
economics
Decreases
waste
DECREASES WASTE
Reduces volume of spent fuel
Reduces radio-toxicity of spent fuel
Enhances proliferation resistance of spent fuel
ENHANCES ECONOMICS
Period between refueling outages increased from 18 to 24 months for existing pressurized water reactors
Increases nuclear plant capacity factors
Allows utilities more flexibility to plan for refueling shutdowns
INCREASES ELECTRIC GENERATION
10 – 17% power uprate for existing pressurized water reactors
Up to 30% power uprate for new build pressurized water reactors
Applicable to boiling water reactors and light water based small modular reactors
IMPROVES SAFETY
Improves response to design basis events (Three Mile Island)
Increases fuel reliability and reduced occupational exposures
Improves margin to fuel rod safety limits (Fukushima Daiichi)
12
efficient heat transfer enhanced structural integrity
reduced operating temperature
Lightbridge fuel
360c
conventional fuel
1250c
Lightbridge fuel is designed for safety.
o
o
13
Financial & economic benefits.
14
$48M
$4M
$8M
10% uprate
24 month cycle
fewer outages *assumes wholesale power price of $55/MWh
15
Operating pressurized water reactors larger than 900 MWe with more than 20 years
licensed life at 2025 Source – The Global Nuclear Fuel Market. Supply and Demand 2011-2030, World Nuclear Association, August 2011 and updated numbers from the World Nuclear
Association database of nuclear reactors
364
127
249
261
554
614
TARGET
ADDITIONAL
OPPORTUNITY
16
2014 2025 2030
Royalty Revenue Projections For 10% Power Uprate Fuel
Captured share of target market for 10% power uprates
Wholesale electricity price of $65/MWh
Note: The revenue projections include an escalation factor of 3% per year. The 20-40% market share of the PWR target market for 10% power uprates represents approximately 8-16% of the entire
projected global market size in 2025.
17
$503M
$755M
$1B
20% 30% 40%
*Siemens Industry Inc. Levelized Cost Model December 2012
total incremental investment
incremental gross margin
$65/MWh
wholesale electricity price
$85M* $43M 50%
internal rate of return
18
Severe accident testing
Partnership with fuel vendor
Host utility commits to
licensing Demonstrate
full length manufacturing
Begin testing in research reactor
NRC approval
First use in commercial
reactors
high risk
medium risk
low risk
19
Commercial strategies & footprint
20
21
22
23
24
Lightbridge investor value proposition:
Unparalleled combination of nuclear industry intellectual capital and management expertise
Patented technology delivers safer solutions at lower cost
Two business lines offer strong revenue and margin growth
Nuclear is the only clean, sustainable, and reliable solution that addresses increasing base load electricity demand
NASDAQ : LTBR 25
®