urg:::Silex Shares Slump

[Len Kanaar - FoE Sydney]

US partner knocks Silex

21.06.2002

MELBOURNE - Shares in technology company Silex Systems plunged 46 per 
cent to a 3 1/2-year low yesterday after its United States partner 
USEC decided to use centrifuge technology for some of its uranium 
enrichment.

Investors ignored a reassuring statement from Silex that said USEC 
remained committed to Silex's uranium enrichment technology 
development programme.

The US firm is the world's largest producer of enriched uranium, 
which is used in nuclear power reactors.

"USEC will continue to fund 100 per cent of the project costs, with 
our 2002-03 budget finalised just this week," said Silex chief 
executive Michael Goldsworthy.

Silex's shares tumbled to a low of A$1.40, giving the group a market 
value of A$178 million ($207 million), despite the company's attempts 
to stem the slide.

Broker Salomon Smith Barney said last month that it viewed Silex as 
an "all or none bet" that hinged on USEC being committed to using its 
technology.

"The key to long-term performance of the stock is the adoption of the 
technology by USEC," it said.


- REUTERS