The Silex (ASX:SLX) share price surged 20% to a 6-year high on Monday

How high can Silex shares go?

| More on:
a man sits on a rocket propelled office chair and flies high above a city

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in Silex Systems Ltd (ASX: SLX) are rocketing to a multi-year high today. The lift comes despite no news out of the nuclear energy and semiconductor company since late last month.

At the time of writing, the Silex share price is up 16.98% trading at $1.86 apiece, after touching a high of $1.95 in early afternoon trade. In comparison, the All Ordinaries Index (ASX: XAO) is up 0.36% to 7,733 points.

What's driving Silex shares higher?

Investors are buying up Silex shares as the uranium sector heats up, with peer companies also enjoying strong gains.

In its 30 August release, Silex advised it completed a key milestone in the Zero-Spin Silicon (ZS-Si) Project.

ZS-Si is a key enabling material for the next generation of processor chips to power silicon quantum computers.

The recently constructed prototype demonstration facility started operations with initial testing for the production of ZS-Si underway. This marks the fourth major accomplishment in the project for the company.

Silex now plans to conduct silicon enrichment tests, focussing on process characterisation, optimisation and efficiency improvements in the coming months.

Once the ZS-Si finalises the second stage, production is expected to be ramped up by the end of 2021.

A third stage, involving industrial-scale process verification will follow producing initial commercial quantities of ZS-Si commencing in late 2022.

What does this mean?

Current methods for the production of enriched silicon are limited and costly with only a few kilograms produced annually.

If the ZS-Si Project is successful, it could potentially enable Australia to establish itself as a world leader in ZS-Si production. In addition, this would create a new value-added export market.

Demand for ZS-Si as silicon-based quantum computer is anticipated to gain traction globally over the next decade.

The project is supported by collaboration partners, Silicon Quantum Computing and the University of New South Wales. Funding comes from the Federal Government's Cooperative Research Centres Projects.

Silex share price summary

In the past 12 months, the Silex share price has produced returns of around 220%, and has doubled in value year-to-date. Compared to this time last month, the share price has moved 80% higher.

Silex presides a market capitalisation of about $309.9 million, and has 173 million shares on issue.

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

More on 52-Week Highs

A cloud with a blue arrow pointing upwards through its middle symbolising a rising asx share price
52-Week Highs

7 ASX 200 shares smashing new highs on Tuesday

Here's why these companies are hitting new 52-week highs on Tuesday.

Read more »

Hands reaching high for a trophy with a sunset in the background.
52-Week Highs

6 ASX 200 shares smashing new highs while the market dives today

Do you own any of these lucky ASX 200 stocks?

Read more »

A woman wearing a top of gold coins and large gold hoop earrings and a heavy gold bracelet stands amid a shower of gold coins with her mouth open wide and an excited look on her face.
Gold

14 ASX gold stocks unearthing fresh 52-week highs today

Do you own any of these hot gold miners?

Read more »

An older female ASX investor holds a gangster-style fist pump pose showing off gold rings with dollar signs on them.
52-Week Highs

These 16 ASX 200 shares are hitting new 52-week highs today even as the market sinks

Do you own any of these lucky stocks?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Gold

Why this $9.6 billion ASX 200 gold stock is smashing the market today

This gold miner has hit a 52-week high on Wednesday. What's going on?

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
ETFs

4 ASX ETFs that hit new 52-week highs today

These ETFs provide exposure to the gold price and companies in emerging markets.

Read more »

Two happy scientists analysing test results.
52-Week Highs

3 ASX All Ords health care shares that reached 52-week peaks today

These health care companies finished the week on a positive note.

Read more »

group of friends jump on the beach
52-Week Highs

6 ASX 300 shares that hit new 52-week highs today

Here's why these companies stood out in an otherwise lacklustre day of trading.

Read more »