Ltbr april2015
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Lightbridge Corporation is developing nuclear fuel technology that can provide utilities with improved economics through increased power output and enhanced safety. Their metallic fuel design allows existing reactors to increase output by 10-17% and new builds by up to 30%. It also extends the period between refueling outages. Lightbridge expects to generate significant revenue through technology licensing fees and royalties as their fuel is used commercially in the growing $25 billion global nuclear fuel market. They are currently collaborating with Canadian Nuclear Laboratories to fabricate fuel samples for testing in research reactors with the goal of commercial deployment in the 2020s.
Ltbr april2015
- 1. NASDAQ : LTBR Investor Presentation RedChip Global Online Conference – April 2015 ®
- 2. 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. 1
- 3. Our patented, metallic fuel technology can help global nuclear utilities achieve improved operating economics through increased power output and enhanced reactor safety. LTBR can realize significant, high- margin revenue streams from technology licensing fees and royalties from a growing $25 billion global market for nuclear fuel. 2
- 4. By listening to utilities, we designed new fuel that is compatible with existing and new reactors. 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+ years 3
- 5. Lightbridge technology has been independently validated by respected industry organizations, confirming its: Technology value proposition U.S. nuclear supply chain issues and implications for Lightbridge metallic fuel Proliferation-resistant properties American Nuclear Society’s Nuclear Technology peer-reviewed journal Independent validation includes: 4
- 6. Nuclear energy is the only clean, sustainable and reliable source that addresses increasing demand for base load power. 5
- 7. Producing the Equivalent of One Cubic Mile of Oil • Hydro: 200 dams 1 every quarter for 50 years 18 GW with 50% availability • Nuclear: 2500 plants 1 a week for 50 years 900 MW with 90% availability • Solar CSP: 7700 solar parks 3 a week for 50 years 900 MW with 25% availability • Windmills: 3 million 1200 a week for 50 years 1.65 MW with 35% availability • Solar Roofs: 4.2 billion 250k roofs a day for 50 years 2.1 kW with 20% availability Source: Ripudaman Mahlhotra, Ph.D., SRI International 6
- 8. Capacity Factor % Nuclear is a more reliable base load energy source than coal and generates zero carbon emissions, as do renewable sources. nuclear coal hydro gas wind solar 7
- 9. 0 50 100 150 200 250 1200 2500 Environmental impact (CO2 lbs/MWh) Lightbridge Fuel: Lowest Levelized Cost for Incremental Power on the Grid Solar Wind Nuclear Lightbridge Natural Gas Coal Sources: Siemens Industry Inc., EIA Annual Energy Outlook 2014, and EPRI “Program on Technology Innovation’” ($/MWh) 8
- 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) 1010
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- 13. Efficient heat transfer Enhanced structural integrity Reduced operating temperature Lightbridge Fuel 360c Conventional Fuel 1250c Lightbridge Fuel Is Designed for Safety o o 12
- 15. $48M $4M $8M 10% uprate 24 month cycle Fewer outages *Assumes wholesale power price of $55/MWh 14
- 16. Operating pressurized water reactors larger than 900 MWe with more than 20 years licensed life at 2025 Sources: The Global Nuclear Fuel Market. Supply and Demand 2011-2030, World Nuclear Association, August 2011 and updated totals from the World Nuclear Association database of nuclear reactors 364 127 249 261 554 614 TARGET ADDITIONAL OPPORTUNITY 2014 2025 2030 15
- 17. Annual Royalty Revenue Projections For 10% Power Uprate Fuel Captured Share of Projected Global Market in 2030 Wholesale electricity price of $55/MWh 8% Royalty fee of incremental gross revenue to utility $344M $517M $688M 10% 15% 20% Note: Revenue projections include an escalation factor of 3% per year. 16
- 18. Lightbridge technology facilitates a high return for utilities *Siemens Industry Inc. Levelized Cost Model, December 2012 Total incremental investment Incremental gross margin $45/MWh Wholesale electricity price $85M* $26M 30% Internal rate of return $55/MWh $85M* $35M 41% $65/MWh $85M* $45M 52% 17
- 19. Severe accident testing Sign agreement with development partner Letter of interest secured from host utility Demonstrate full length manufacturing Begin testing in research reactor NRC approval First use in commercial reactors Commercial Deployment Timeline High risk Medium risk Low risk 2014 2016 2018 2020 2022 18
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- 22. Lightbridge Near-Term Catalysts for Nuclear Fuel Business Fabricate irradiation fuel samples in 2016 Secure a letter of interest from a utility by 2016 for lead test assembly demonstration Begin test reactor irradiation of the fuel samples by early 2017 Enter into a cost-sharing arrangement with an industry partner and/or government by late 2017-early 2018 to support deployment of a pilot-scale fabrication facility, fabrication of lead test assemblies and their operation in a commercial power reactor 21
- 23. Path to Commercial Use 1. Execute recently announced collaboration with CNL-Chalk River Laboratories on fuel sample fabrication 2. Leverage our Nuclear Utility Fuel Advisory Board to secure a letter of intent from at least one utility for lead test assembly demonstration 3. Seek cost-sharing government and/or industry partner funding contributions to support lead test assembly demonstration 22
- 24. Fuel irradiation program in Halden research reactor under prototypic power reactor operating conditions 2015 2016 2017 2018 2019 2020 Total Execute Enabling Agreements Develop Fabrication Plan Loop Irradiation Experiment Design Fabrication of Fuel Samples Irradiation of Fuel Samples Post-Irradiation Examination Out of Reactor Testing Estimated increase in annual R&D expenditures over current program spending levels ($MM) $1.8 $1.8 $1.4 $1.7 $1.7 $2.0 $10.4 23
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- 27. Lightbridge Value Proposition Unparalleled combination of nuclear industry intellectual capital and management expertise Patented technology delivers improved operating economics, more power output and enhanced reactor safety Nuclear is the only clean, sustainable and reliable energy source that addresses increasing global demand for base load electricity 26
- 28. NASDAQ : LTBR ® Lightbridge Corporation – 1600 Tysons Blvd., Ste. 550 – McLean, VA 22102 +1-571-730-1213 – ir@ltbridge.com – http://www.ltbridge.com Twitter: @LightbridgeCorp