&RQYHUVLRQRI(QHUJ\&DQHDQG6ZHHW6RUJKXPLQWR%LRIXHOVDQG
&KHPLFDOV$0RGHOLQJ$SSURDFK
'DLUD$UDJRQ6K\XH/XDQG9DGLP.RFKHUJLQ
'HYHORSLQJSURFHVVWHFKQRORJLHVWRREWDLQIXHOVDQGFKHPLFDOVIURPUHQHZDEOH
UHVRXUFHVKDVJDLQHGLQFUHDVHGLQWHUHVWDQGLQWKH8QLWHG6WDWHVUHVHDUFKLQWKLVDUHDKDV
EHHQGULYHQE\WKHH[SHFWDWLRQRIHQHUJ\LQGHSHQGHQFHDQGORZHUHQYLURQPHQWDOLPSDFW
7KHJRDOLVWRSURGXFHPLOOLRQPRIDGYDQFHGELRIXHOVE\RIZKLFK
PLOOLRQPPXVWRULJLQDWHIURPOLJQRFHOOXORVLFVRXUFHV(QHUJ\,QGHSHQGHQFHDQG
6HFXULW\$FW(YHQWKRXJKJUHDWHIIRUWVDUHEHLQJPDGHWRZDUGVGHYLVLQJ
OLJQRFHOOXORVLFSUHWUHDWPHQWDQGFRQYHUVLRQSURFHVVHVWKHUHDUHFXUUHQWO\QRHFRQRPLFDO
DOWHUQDWLYHVWROLTXLGIRVVLOIXHOV8OWLPDWHO\WKHHFRQRPLFDOSURGXFWLRQRIELRIXHOV
UHVLGHVLQWKHFUHDWLRQRIDQLQWHJUDWHGELRUHILQHU\ZKLFKSURGXFHVDOWHUQDWLYHSURGXFWV
LQFOXGLQJELREDVHGFKHPLFDOVDQGSRZHUJHQHUDWLRQ7KLVPXVWDOVRWDNHLQWR
FRQVLGHUDWLRQWKHVWUHQJWKVRIUHJLRQDOVFHQDULRVLQWHUPVRIW\SHVRIIHHGVWRFNVSHFLILF
JURZWKDUHDVDQGDYDLODEOHLQIUDVWUXFWXUH
(QHUJ\FDQHDK\EULGRIFRPPHUFLDOVXJDUFDQH6DFFKDUXPRIILFLQDUXP3RDFHDH
DQGZLOGVXJDUFDQHVDQGVZHHWVRUJKXP6RUJKXPELFRORUKDYHEHHQLGHQWLILHGE\
86'$DVWZRFURSVZLWKKLJKSRWHQWLDODVIHHGVWRFNIRUDELRUHILQHU\LQWKH6RXWKHDVWHUQ
8QLWHG6WDWHV(QHUJ\FDQHLVH[SHFWHGWRSURYLGHKLJKELRPDVV\LHOGVZLWKYDOXHVXSWR
WKDWKDGU\ZHLJKWUHSRUWHGLQH[SHULPHQWDOSORWVLQ/RXLVLDQD*UDYRLVHWDO
1HZFXOWLYDUVRIHQHUJ\FDQHDUHH[SHFWHGWRWROHUDWHFROGHUFOLPDWHVVRLWFDQEH
SODQWHGIXUWKHUQRUWKWKDQFRPPHUFLDOFXOWLYDUVRIVXJDUFDQH6ZHHWVRUJKXPLVDQ
LQWHUHVWLQJDOWHUQDWLYHDVLWFDQEHJURZQLQPDUJLQDOODQGGXHWRLWVORZDJULFXOWXUDOLQSXW
UHTXLUHPHQWV9LDWRUHWDO&RPSDUHGWRFRPPHUFLDOVXJDUFDQH±ERWK
FURSVFDQUHDFKVLJQLILFDQWWRWDOIHUPHQWDEOHVXJDUFRQWHQW±ZLWKUHODWLYHO\KLJK
ILEHUFRQWHQW±.LPDQG'D\)XUWKHUPRUHLQIUDVWUXFWXUHHJSODQWLQJ
DQGKDUYHVWLQJHTXLSPHQWSURFHVVLQJWHFKQRORJLHVHWFDYDLODEOHLQWKH6RXWKHDVWHUQ
86UHJLRQIRUFRPPHUFLDOVXJDUFDQHFDQEHXVHGIRUVZHHWVRUJKXPDQGHQHUJ\FDQH
3RWHQWLDOSURFHVVLQJDQGSURGXFWLRQVFHQDULRVVKRXOGWDNHLQWRDFFRXQWWKHVHDVRQDO
DYDLODELOLW\RIWKHVHIHHGVWRFNVDQGWKHQHFHVVLW\RIFRQWLQXRXVRSHUDWLRQRIELRUHILQHULHV
2QHRIWKHFKDOOHQJHVRIDQLQWHJUDWHGELRUHILQHU\EDVHGRQFDQHOLNHIHHGVWRFNVLVWR
PDNHWKHEHVWXVHRIWKHKLJKILEHUE\SURGXFWFDOOHGEDJDVVHDIWHUWKHVXJDUVDUH
H[WUDFWHG7KHRSWLRQRIVWHDPDQGSRZHUJHQHUDWLRQLVXVHGURXWLQHO\LQPDQ\FRXQWULHV
IRUFRPPHUFLDOVXJDUFDQH3URGXFWLRQRIVHFRQGJHQHUDWLRQVXJDUVIURPEDJDVVHXVLQJ
DYDLODEOHOLJQRFHOOXORVLF/&SUHWUHDWPHQWPHWKRGVKDVQRWEHHQLPSOHPHQWHG
FRPPHUFLDOO\7KHSURFHVVLQJURXWHVHOHFWHGIRUEDJDVVHZLOOGHWHUPLQHSURGXFW\LHOGV
DQGHFRQRPLFIHDVLELOLW\RIWKHELRUHILQHU\0DWHULDODQGHQHUJ\EDODQFHVDUHQHFHVVDU\
IRUWKLVSXUSRVH'HWDLOHGGDWDRQMXLFHVXFURVHJOXFRVHIUXFWRVHDQGSRVVLEO\RWKHU
VXJDUVDQGILEHUFRPSRVLWLRQFHOOXORVHKHPLFHOOXORVHVDQGOLJQLQLVQHFHVVDU\IRUWKHVH
EDODQFHV5HOHYDQWILJXUHVWRREWDLQIURPPDWHULDODQGHQHUJ\EDODQFHVLQFOXGHHOHFWULFLW\
DQGVWHDPUHTXLUHPHQWVIRUWKHIDFLOLW\WKHEDJDVVHDYDLODELOLW\IRU/&SUHWUHDWPHQWDIWHU
EXUQLQJXVHRIOLJQLQDQGWKH\LHOGVRIELRIXHOVDQGFKHPLFDOVSURGXFHG
7KLVSDSHUSUHVHQWVDQDSSURDFKEDVHGRQSURFHVVLQJVLPLODULWLHVEHWZHHQHQHUJ\
FDQHVZHHWVRUJKXPDQGFRPPHUFLDOVXJDUFDQH7KHFRQWHQWRIUHDGLO\DYDLODEOHVXJDUV
SULPDU\VXJDUVLQWKHVHFURSVMXVWLILHVWKHLUH[WUDFWLRQLQDSULPDU\SURFHVVLQJSODQW
VLPLODUWRDFRQYHQWLRQDOVXJDUPLOOEHIRUHOLJQRFHOOXORVLFELRPDVVLVFRQVLGHUHG7KH
H[WUDFWHGMXLFHFRQWDLQLQJZDWHUDURXQGZW*UDYRLVHWDODQG
PHDVXUHPHQWVDW$XGXERQ6XJDU,QVWLWXWHLVHYDSRUDWHGWRFRQFHQWUDWHWKHMXLFHWR
DFFHSWDEOHOHYHOVIRUSURFHVVLQJDQGVWRUDJH&RQVLGHULQJWKHVHDVRQDOQDWXUHRIHQHUJ\
FDQHDQGVZHHWVRUJKXPPDWHULDODQGHQHUJ\EDODQFHVDUHFDOFXODWHGWRGHWHUPLQHWKH
DPRXQWRIFRQYHUWLEOHVXJDUVSRWHQWLDOO\REWDLQHGIURPWKHVHFURSVWKHDYDLODELOLW\RI
ILEHUIRUSRZHUJHQHUDWLRQDQGOLJQRFHOOXORVLFFRQYHUVLRQDQGWKHVWRUDJHFDSDFLW\
UHTXLUHGWRUXQDELRUHILQHU\\HDUURXQG
)(('672&.&+$5$&7(5,=$7,21
8QGHUVWDQGLQJFURSFRPSRVLWLRQLVRQHHVVHQWLDOHOHPHQWIRUHYDOXDWLQJFRQYHUWLEOH
VXJDUVDQGILEHUDYDLODELOLW\0RVWLQIRUPDWLRQRQWKHFRPSRVLWLRQRIHQHUJ\FDQHRU
VRUJKXPDYDLODEOHLQSXEOLVKHGOLWHUDWXUHGRHVQRWSURYLGHVXIILFLHQWGDWDWRFRPSOHWH
PDWHULDODQGHQHUJ\EDODQFHVIRUDELRUHILQHU\&RPSRVLWLRQRIWKHFURSVLVW\SLFDOO\
DYDLODEOHLQDIRUPVLPLODUWRGDWDSUHVHQWHGLQ7DEOH7KH%UL[YDOXHVLQWKLVWDEOHJLYH
DFOHDULQGLFDWLRQRIWKHUHODWLYHO\KLJKWRWDOVXJDUFRQWHQWRIHQHUJ\FDQHDQGVZHHW
VRUJKXP'DWDLQ7DEOHLVJHQHUDWHGXVLQJTXLFNPHWKRGVLQWKHILHOGZLWKQRGHWDLOHG
DQDO\VLVRIW\SHVRIVXJDUVRUFRPSRQHQWVLQWKHILEHU)RUDFFXUDWHFDOFXODWLRQRI
PDWHULDODQGHQHUJ\EDODQFHVPRUHGHWDLOHGFRPSRVLWLRQDODQDO\VLVLVUHTXLUHG+RZHYHU
DYDLODEOHGDWDRQWKLVVXEMHFWLVVFDUFHRUGRHVQRWH[LVW
7DEOH7\SLFDOGDWDIRXQGIRUFRPPHUFLDOVXJDUFDQHHQHUJ\FDQHDQGVZHHWVRUJKXP
&DQHYDULHW\
6XJDUFDQH
(QHUJ\FDQH+R
(QHUJ\FDQH+R&3
6ZHHWVRUJKXP
<LHOGWKD
%UL[
MXLFH
)LEHU
FDQH
5HIHUHQFH
.LPDQG'D\
+DOH
*UDYRLVHWDO
.LPDQG'D\
7RH[SDQGRQWKHFRPSRVLWLRQDOGDWDDYDLODEOHIRUWKHFURSVEHLQJFRQVLGHUHGZKROH
VWDONVRIHQHUJ\FDQHYDULHW\+2DQGVZHHWVRUJKXPYDULHW\'XUDVZHHWK\EULG
0VHHGVSURYLGHGE\&HUHV,QFZHUHSODQWHGDQGPDQXDOO\KDUYHVWHGLQ6W*DEULHO
/RXLVLDQD(DFKVDPSOHFRQVLVWLQJRI±IXOO\LQWDFWVWDONVZDVVKUHGGHGLQD'HGLQL
KDPPHUPLOO)URPWKHVKUHGGHGPDWHULDONJZDVUHPRYHGDQGSUHVVHGIRUVHFRQGV
LQD+RQLURQK\GUDXOLFSUHVVDW03D:HLJKWVRIWKHPDWHULDOEHIRUHDQGDIWHU
SUHVVLQJDQGGU\LQJZHUHXVHGLQFDOFXODWLQJWKHSHUFHQWDJHRIILEHUDQGMXLFHLQWKH
VDPSOHV([WUDFWHGMXLFHZDVDQDO\]HGIRUVXFURVHJOXFRVHDQGIUXFWRVHE\+3/&XVLQJD
%LR5DG$PLQH[+3;.FROXPQ$IWHUFHQWULIXJLQJH[WUDFWHGMXLFHDWUSPIRU
PLQXWHV%UL[ZDVREWDLQHGIURPDQDO\VLVRQDUHIUDFWRPHWHUDQGFRUUHFWHGIRU
WHPSHUDWXUH7KHDPRXQWRIVROLGVUHPDLQLQJDIWHUFHQWULIXJLQJZDVFDOFXODWHGDVD
ZHLJKWSHUFHQWDJHDQGXVHGWRDGMXVWWKHMXLFHDQGILEHUSHUFHQWDJHV$VKFRQWHQWLQWKH
MXLFHZDVPHDVXUHGRQDFRQGXFWLYLW\PHWHUIROORZLQJ,&806$PHWKRGV,&806$
5HPDLQLQJILEHUEDJDVVHZDVGULHGLQDQRYHQDW“ƒ&IRUDWOHDVWGD\V7KH
GULHGEDJDVVHZDVWKHQPLOOHGWRSDVVDPPVLHYHDQGSUHSDUHGIRUIXUWKHUDQDO\VLV
XVLQJDQDXWRPDWLFVRK[OHWH[WUDFWRUZLWKERWKDQKRXUZDWHUH[WUDFWLRQDQGDKRXU
HWKDQROH[WUDFWLRQ1DWLRQDO5HQHZDEOH(QHUJ\/DERUDWRU\15(/ELRPDVV
FRPSRVLWLRQDODQDO\VLVPHWKRGV15(//DERUDWRU\$QDO\WLFDO3URFHGXUHVZHUH
IROORZHGWRGHWHUPLQHWKHFHOOXORVHKHPLFHOOXORVHOLJQLQDQGDVKFRQWHQWLQWKHEDJDVVH
$YHUDJHFRPSRVLWLRQIRUHQHUJ\FDQHDQGVZHHWVRUJKXPDUHSUHVHQWHGLQ7DEOHVDQG
7DEOH&RPSRVLWLRQRIHQHUJ\FDQHDQGVZHHWVRUJKXP
)HHGVWRFN
6XFURVH
(QHUJ\FDQH]
“
6ZHHWVRUJKXP\
“
]
$YHUDJHRIVDPSOHV
\
$YHUDJHRIVDPSOHV
&RPSRVLWLRQZW
)UXFWRVH
:DWHU
“
“
“
“
*OXFRVH
“
“
)LEHU
“
“
$VK
“
“
7DEOH&RPSRVLWLRQRIHQHUJ\FDQHDQGVZHHWVRUJKXPEDJDVVHILEHU
)HHGVWRFN
(QHUJ\FDQH]
6ZHHWVRUJKXP\
]
$YHUDJHRIVDPSOHV
\
$YHUDJHRIVDPSOHV
&HOOXORVH
“
“
&RPSRVLWLRQGU\ZW
+HPLFHOOXORVH
/LJQLQ
$VK
“
“
“
“
“
“
2WKHUV
“
“
&21&(378$/$3352$&+
7KHDSSURDFKSURSRVHGLQWKLVZRUNDVVXPHVWKDWHQHUJ\FDQHDQGVZHHWVRUJKXP
FDQEHSURFHVVHGHLWKHUVHSDUDWHO\RUWRJHWKHULQDIDFLOLW\VLPLODUWRDUDZVXJDUPLOO
)LJXUHGHVFULEHVWKHJHQHUDOFRQFHSWRIWKHSURSRVHGELRUHILQHU\FRPSRVHGRIWKUHH
LQWHUFRQQHFWHGSODQWVDSULPDU\SURFHVVLQJSODQWDOLJQRFHOOXORVLF/&FRQYHUVLRQ
SODQWDQGDELRFKHPLFDOFRQYHUVLRQSODQWELRUHILQHU\-XLFHLVH[WUDFWHGIURPWKH
IHHGVWRFNDQGFRQFHQWUDWHGLQWRV\UXSLQWKHSULPDU\SURFHVVLQJSODQW,QLWLDOO\EDJDVVH
LVEXUQWLQDSRZHUSODQWDWWDFKHGWRWKHSULPDU\SURFHVVLQJSODQWWRJHQHUDWHDOOVWHDP
DQGHOHFWULFLW\IRUWKHHQWLUHIDFLOLW\([FHVVEDJDVVHLVSUHWUHDWHGWRREWDLQDGGLWLRQDO
VXJDUVLQWKH/&FRQYHUVLRQSODQW)LQDOO\V\UXSREWDLQHGLQWKHSULPDU\SURFHVVLQJSODQW
LVSURFHVVHGE\GLIIHUHQWWHFKQRORJLHVLQWREXWDQROLVRSUHQHRUJDVROLQHDGGLWLYHVLQWKH
ELRUHILQHU\,WLVDVVXPHGWKDWWKHODWWHUWHFKQRORJLHVDUHSURSULHWDU\WRGHYHORSPHQW
SDUWQHUVDQGWKHUHIRUHDUHQRWLQFOXGHGLQWKLVZRUN%HFDXVHRIWKHVHDVRQDOFKDUDFWHU
RIKDUYHVWLQJWKHIHHGVWRFNDIUDFWLRQRIWKHV\UXSSURGXFHGLQWKHSULPDU\SODQWPXVWEH
VWRUHGWRSURYLGHDFRQWLQXRXVIHHGWRWKHELRFKHPLFDOFRQYHUVLRQSODQW
7KHSURSRVHGFRQFHSWDVVXPHVWKDWWKHSULPDU\SODQWSURFHVVHVWGD\RI
IHHGVWRFNZHWEDVLVFROOHFWHGIURPDWRWDORIKDDQG\LHOGLQJWKD7KLVSODQW
RSHUDWHVGXULQJDKDUYHVWLQJVHDVRQRIGD\VSURFHVVLQJVZHHWVRUJKXPIRUGD\V
DQGHQHUJ\FDQHIRUGD\V'XULQJWKHKDUYHVWLQJVHDVRQDSRUWLRQRIWKHMXLFHLV
FRQFHQWUDWHGLQWRV\UXS±GLVVROYHGVROLGVDQGVHQWWRWKHELRUHILQHU\IRU
LPPHGLDWHSURFHVVLQJ7KHUHPDLQLQJSRUWLRQRIMXLFHLVFRQFHQWUDWHGIXUWKHU±
GLVVROYHGVROLGVDQGVHQWWRVWRUDJHIRUSURFHVVLQJGXULQJWKHRIIVHDVRQ7KHEDJDVVH
XVXDOO\DWPRLVWXUHDQGLVVHQWWRWKHSRZHUSODQWWRJHQHUDWHVWHDPDQGSRZHUIRU
WKHHQWLUHIDFLOLW\([FHVVEDJDVVHLIDQ\LVSUHWUHDWHGLQWKHOLJQRFHOOXORVLFFRQYHUVLRQ
SODQWWRREWDLQDGGLWLRQDOVXJDUV
)LJ3URSRVHGLQWHJUDWHGELRUHILQHU\IRUVZHHWVRUJKXPDQGHQHUJ\FDQH
02'(/,1*$3352$&+
7KHSULPDU\SURFHVVLQJSODQWZDVPRGHOHGDVDUDZVXJDUIDFWRU\ZLWKRQHVHWRI
NQLYHVDQGDVKUHGGHUIRUIHHGVWRFNSUHSDUDWLRQDQFHOOGLIIXVHUIRUH[WUDFWLRQRIVXJDUV
DQGDUROOPLOOIRUEDJDVVHGHZDWHULQJ$FODULILHUVHWWOHVVXVSHQGHGVROLGVDQGWKH
FODULILHGMXLFHLVFRQFHQWUDWHGLQWRV\UXSXVLQJWZRVHWVRIHIIHFWHYDSRUDWRUV7KH
SHUFHQWDJHRIMXLFHWKDWLVFRQFHQWUDWHGIRUVWRUDJHLVIRUHQHUJ\FDQHDQG
IRUVZHHWVRUJKXP7KHVHYDOXHVZHUHFDOFXODWHGVRWKDWWKHELRUHILQHU\RSHUDWHVDW
DSSUR[LPDWHO\WKHVDPHFDSDFLW\ERWKRQDQGRIIVHDVRQ%DJDVVHEXUQHUVDUHXVHGWR
SURGXFHVWHDPDWN3DDQGƒ&DWDUDWHRINJVWHDPNJEDJDVVH3RZHULV
JHQHUDWHGLQWXUERJHQHUDWRUVSURGXFLQJH[KDXVWVWHDPDWN3DDQGž&N3D
DQGž&DQGN3DDQGž&IRUWKHSULPDU\SURFHVVLQJSODQWELRUHILQHU\DQG/&
FRQYHUVLRQSODQWFRUUHVSRQGLQJO\7KH/&SODQWZDVPRGHOHGIROORZLQJWKHSURFHVV
IURP+XPELUGHWDOZKHUHDGLOXWHGDFLGSUHWUHDWPHQWUHDFWRUFRQYHUWV
KHPLFHOOXORVHVDVVXPHGDV[\ODQLQWR[\ORVHDQGDK\GURO\VLVUHDFWRUEUHDNVFHOOXORVH
LQWRJOXFRVH$FRQYHUVLRQUDWHZDVDVVXPHGLQERWKFDVHV$OOVXFURVHLVDVVXPHG
WREHK\GURO\]HGLQWRJOXFRVHDQGIUXFWRVH(QHUJ\FRQVXPSWLRQIRUWKH/&SODQWZDV
DVVXPHGWREHN:KWGU\ELRPDVVZKLFKLVWKHVDPHDVSUHVHQWHGLQ+XPELUGHWDO
IRUFRUQVWRYHU7KHMXLFHWKDWOHDYHVWKH/&SODQWLVPL[HGZLWKWKHFODULILHGMXLFH
EHIRUHHQWHULQJWKHHYDSRUDWLRQVWDWLRQ6WHDPFRQVXPSWLRQGHSHQGVRQWKHDPRXQWRI
PDWHULDOWKDWLVEHLQJSURFHVVHGDQGLWLVFDOFXODWHGE\PDWHULDODQGHQHUJ\EDODQFHV7KH
ELRUHILQHU\LWVHOIZDVQRWPRGHOHGGXHWKHSURSULHWDU\QDWXUHRIWKHFRQYHUVLRQSURFHVVHV
EXWHVWLPDWHGHQHUJ\DQGVWHDPFRQVXPSWLRQRIWVWHDPWVXJDUVDQGN:KW
VXJDUVZHUHLQFOXGHGLQWKHFDOFXODWLRQV7KHELRUHILQHU\FRQYHUWVERWK&DQG&VXJDUV
LQWRIXHOVDQGFKHPLFDOV7KHPRGHORIWKHSULPDU\DQG/&FRQYHUVLRQSODQWVZHUH
GHYHORSHGLQ6XJDUV70DIORZVKHHWLQJVRIWZDUHVSHFLDOL]LQJLQFDQHDQGEHHWVXJDU
SURGXFWLRQ
7ZRVFHQDULRVZHUHVLPXODWHGLQ6XJDUV70XVLQJWKHIHHGVWRFNFRPSRVLWLRQ
SUHVHQWHGLQ7DEOH$2SHUDWLRQWRJHQHUDWHRQO\SRZHUIRUH[SRUWDQG%2SHUDWLRQ
WRSURGXFHOLJQRFHOOXORVLFVXJDUV6FHQDULR$GRHVQRWFRQVLGHUOLJQRFHOOXORVLF
FRQYHUVLRQVRDOOH[FHVVEDJDVVHLVEXUQWWRSURGXFHSRZHU6FHQDULR%GRHVQRWFRQVLGHU
SRZHUJHQHUDWLRQIRUH[SRUWVREDJDVVHLVXVHGLQWKH/&FRQYHUVLRQSODQW,QERWKFDVHV
LQWHUQDOVWHDPDQGSRZHUUHTXLUHPHQWVDUHPHWIRURQDQGRIIVHDVRQRSHUDWLRQEHIRUH
H[SRUWLQJHOHFWULFDOSRZHUDQGRUFRQYHUWLQJILEHULQWRVXJDUV
5(68/76
&RPSDUDWLYHUHVXOWVRISURGXFWLRQDQGFRQVXPSWLRQIRUHQHUJ\FDQHDQGVZHHW
VRUJKXPZKHQJHQHUDWLQJSRZHUIRUH[SRUWDUHSUHVHQWHGLQ7DEOH7KHVHUHVXOWV
LQGLFDWHWKDWH[WUDFWLRQRIFRQYHUWLEOHVXJDUVLVVLJQLILFDQWUHSUHVHQWLQJFORVHWRRI
WKHWRWDOVXFURVHREWDLQHGIURPFRPPHUFLDOVXJDUFDQHDVUDZVXJDU%HFDXVHWKH
YDULHWLHVRIHQHUJ\FDQHDQGVZHHWVRUJKXPLQWKLVVWXG\KDYHYHU\VLPLODUFRPSRVLWLRQ
SURGXFWLRQDQGFRQVXPSWLRQLVDOVRVLPLODUEHWZHHQWKHP)RUWKHFXOWLYDUVXQGHU
FRQVLGHUDWLRQHQHUJ\FDQHKDVFORVHWRPRUHILEHUWKDQVZHHWVRUJKXPDQGSURGXFHV
WKHVDPHSHUFHQWDJHPRUHSRZHU,QDSUHYLRXVVWXG\IRUDPL[WXUHRIVZHHWVRUJKXP
FXOWLYDUVµ7KHLV¶µ'DOH¶µ7RSSHU¶DQGµ0(¶XVLQJDPLOOLQJWDQGHPLQWKHSULPDU\
SURFHVVLQJSODQW$UDJRQHWDOHQHUJ\FDQHZLWKPRUHILEHUWKDQVZHHW
VRUJKXPJHQHUDWHGPRUHHOHFWULFDOSRZHU7KHVHGLIIHUHQFHVFOHDUO\VKRZWKDWWKH
SRZHUJHQHUDWLRQDQGOLJQRFHOOXORVLFVXJDUVREWDLQHGDUHKLJKO\GHSHQGDEOHRQWKH
FXOWLYDUFRQVLGHUHG6WHDPDQGHQHUJ\FRQVXPSWLRQLVKLJKHULQHQHUJ\FDQHGXHWRLWV
KLJKHUILEHUFRQWHQWUHTXLULQJPRUHLPELELWLRQZDWHUDQGWKHUHIRUHPRUHHQHUJ\WR
FRQFHQWUDWHWKHMXLFHDQGPRUHVWHDPWRSURFHVVWKHDGGLWLRQDOILEHULQWKH/&FRQYHUVLRQ
SODQW
7DEOH3URGXFWLRQDQGFRQVXPSWLRQIRUHQHUJ\FDQHDQGVZHHWVRUJKXP6FHQDULR$RSHUDWLRQIRU
SRZHUJHQHUDWLRQ
)HHGVWRFN
6ZHHWVRUJKXP
(QHUJ\FDQH
3URGXFWLRQ
3ULPDU\VXJDUV
(OHFWULFDOSRZHU
NJW
N:KW
&RQVXPSWLRQ
6WHDP
(QHUJ\
NJW
N:KW
7KHFRPELQHGUHVXOWVIRUWKH\HDUWKDWLVFRQVLGHULQJWKDWVZHHWVRUJKXPLV
KDUYHVWHGIRUGD\VDQGHQHUJ\FDQHIRUGD\VDUHSUHVHQWHGLQ7DEOH
&RQWULEXWLRQIURPVZHHWVRUJKXPWRWKHWRWDOSULPDU\VXJDUVDQGV\UXSWRVWRUDJH
UHSUHVHQWVDERXWRIWKHWRWDOZKLOHLWVFRQWULEXWLRQWRSRZHUJHQHUDWHGLVDERXW
,QVFHQDULR$WKHSURGXFWLRQRIWRWDOIHUPHQWDEOHVXJDUVLVKLJKHUWKDQWKHDYHUDJH
UDZVXJDUVXFURVHRQO\SURGXFWLRQSHUIDFWRU\LQ/RXLVLDQDRIPLOOLRQNJ
$PHULFDQ6XJDU&DQH/HDJXH7KLVLVDQLPSRUWDQWDPRXQWFRQVLGHULQJWKDWQR
SRZHULVH[SRUWHGE\WKHVXJDUPLOOVZKLOHPLOOLRQN:KLVH[SRUWHGE\WKH
SURSRVHGLQWHJUDWHGELRUHILQHU\$WDQLQGXVWULDOSULFHRI„N:KIRU/RXLVLDQD86
(QHUJ\,QIRUPDWLRQ$GPLQLVWUDWLRQWKLVILJXUHUHSUHVHQWVPRUHWKDQ86
PLOOLRQ7DEOHDOVRVKRZVWKDWWRUXQWKHELRUHILQHU\\HDUURXQG.PRIV\UXS
QHHGVWREHVWRUHG7KLVLVQRWDVWUDLJKWIRUZDUGWDVNGXHWKHYROXPHLPSOLHGDQGWKH
FKDOOHQJHVRIDYRLGLQJGHJUDGDWLRQ
&RPSDUDWLYHUHVXOWVRISURGXFWLRQDQGFRQVXPSWLRQIRUHQHUJ\FDQHDQGVZHHW
VRUJKXPZKHQOLJQRFHOOXORVLFVXJDUVDUHSURGXFHGDUHSUHVHQWHGLQ7DEOH%HFDXVHRI
WKHKLJKHUILEHUFRQWHQWLQERWKIHHGVWRFNVOLJQRFHOOXORVLFVXJDUVREWDLQHGUHDFKXSWR
RIWKDWRISULPDU\VXJDUVZKLOHRQO\XVLQJRIWKHEDJDVVHIURPHQHUJ\FDQH,Q
VLPXODWLRQVSHUIRUPHGE\'LDVHWDOIRUVXJDUFDQHZLWKILEHUWKHLQFOXVLRQ
RI/&FRQYHUVLRQDOORZHGSURGXFLQJXSWRPRUHHWKDQROZLWKORVVRISRZHUQRW
KLJKHUWKDQ+RZHYHUWKHVHUHVXOWVDUHEDVHGRQWKHDVVXPSWLRQWKDWRIWKH
WUDVKLVUHFRYHUHGDQGXVHGLQWKHERLOHUVIRUVWHDPDQGSRZHUJHQHUDWLRQ&DQHWUDVK
FROOHFWLRQDQGWUDQVSRUWDWLRQLVVWLOOTXHVWLRQDEOHGXHWRORZGHQVLW\DQGORZYDOXHRI
WUDVKKLJKGLUWFRQWHQWWKDWLVGHWULPHQWDOWRERLOHUSHUIRUPDQFHHWF7KLVLQGLFDWHVWKDW
IRUORZILEHUIHHGVWRFNVKLJKHUVXJDU\LHOGVDUHSRVVLEOHRQO\LIRWKHUVRXUFHVRISRZHU
DUHHPSOR\HG
7DEOH7RWDOSURGXFWLRQDQGFRQVXPSWLRQIRULQWHJUDWHGELRUHILQHU\6FHQDULR$RSHUDWLRQIRUSRZHU
JHQHUDWLRQ
)HHGVWRFN
6ZHHW6RUJKXP
(QHUJ\&DQH
7RWDO
3ULPDU\VXJDUV
GU\EDVLV
PLOOLRQNJ
3RZHU
PLOOLRQN:K
6\UXSWR
VWRUDJH
.P
7DEOH6XJDUDQGSRZHUSURGXFWLRQSHUIHHGVWRFN6FHQDULR%RSHUDWLRQIRU*VXJDUVSURGXFWLRQ
)HHGVWRFN
6ZHHWVRUJKXP
(QHUJ\FDQH
3URGXFWLRQ
3ULPDU\
*6XJDUV
VXJDUV
.JW
NJW
&RQVXPSWLRQ
%DJDVVHWR
/&SODQW
6WHDP
NJW
(QHUJ\
N:KW
7DEOH7RWDOSURGXFWLRQDQGFRQVXPSWLRQIRULQWHJUDWHGELRUHILQHU\6FHQDULR%RSHUDWLRQIRU*VXJDUV
SURGXFWLRQ
3ULPDU\VXJDUVGU\
*6XJDUV
6\UXSWRVWRUDJH
EDVLV
GU\EDVLV
.P
)HHGVWRFN
PLOOLRQNJ
PLOOLRQNJ
6ZHHWVRUJKXP
(QHUJ\FDQH
7RWDO
7KHFRPELQHGUHVXOWVIRUWKH\HDUFRUUHVSRQGLQJWRVFHQDULR%DUHSUHVHQWHGLQ7DEOH
,QWKLVFDVHWRWDOIHUPHQWDEOHVXJDUVDGGWRPLOOLRQNJDQLQFUHDVHRIRYHU
SRZHUJHQHUDWLRQRQO\6WRUDJHUHTXLUHPHQWVRI.PPDNHVFHQDULR%DQHYHQ
PRUHFKDOOHQJLQJFDVH$OWHUQDWLYHWRVWRULQJV\UXSNWEDJDVVHFRXOGEHVWRUHGWRUXQ
WKH/&SODQW\HDUURXQG7KLVLVDOVRDGLIILFXOWWDVNDVEDJDVVHPXVWEHGULHGDQGNHSWDW
DQDFFHSWDEOHPRLVWXUHOHYHOWRDYRLGGHFRPSRVLWLRQ
7KHDQVZHUWRWKHTXHVWLRQRIWKHEHVWSRVVLEOHXVHRIEDJDVVHPXVWLQYROYHQRWRQO\
WHFKQLFDOLVVXHVVXFKDVVWRUDJHUHTXLUHPHQWVEXWDOVRHFRQRPLFFRQVLGHUDWLRQV
&XUUHQWO\WKHUHLVQRHVWDEOLVKHGPDUNHWSULFHIRUOLJQRFHOOXORVLFVXJDUV7KHTXHVWLRQ
ZKHWKHUWKHVHVXJDUVFDQFRPSHWHZLWKHOHFWULFLW\LVQRWWULYLDODVPDQ\FRVWDVVXPSWLRQV
VKRXOGEHPDGH$EDVLFFDOFXODWLRQQRWDIXOOWHFKQRHFRQRPLFHYDOXDWLRQDVVXPLQJ
WKHFRVWRIHOHFWULFLW\WREH„N:KDQGWKHSULFHRIIHUPHQWDEOHVXJDUVIURPELRPDVV
WREH„NJ+XPELUGHWDOWKHFRVWRISURGXFLQJIHUPHQWDEOHVXJDUVIURP
EDJDVVHPXVWEHOHVVWKDQ„NJWREHHFRQRPLFDOO\DWWUDFWLYH$SUHYLRXVVWXG\E\
'D\DQG0DGVHQHVWLPDWHGVXFKSURGXFWLRQFRVWWREH„NJ7KLVFOHDUO\
VXJJHVWVWKDWPXFKZRUNLVVWLOOQHHGHGWRORZHUWKHFRVWRIOLJQRFHOOXORVLFVXJDUVVRWKH\
FDQRXWZHLJKSRZHUH[SRUW
&21&/86,216
0RVWRIWKHVXJDUVWKDWFDQEHUHFRYHUHGIURPKLJKILEHUFDQHHQHUJ\FDQHRUVZHHW
VRUJKXPFDQEHH[WUDFWHGXVLQJWHFKQRORJ\DSSOLHGLQFRQYHQWLRQDOVXJDUPLOOVDQGXVHG
IRUIDEULFDWLRQRIELREDVHGIXHOVDQGFKHPLFDOV
%RWKVZHHWVRUJKXPDQGHQHUJ\FDQHSURYLGHHQRXJKILEHUWRPHHWVWHDPDQGSRZHU
UHTXLUHPHQWVDQGSURGXFHH[FHVVEDJDVVHWRH[SRUWHOHFWULFLW\RUVXSSRUWSURGXFWLRQRI
OLJQRFHOOXORVLFVXJDUV7KHDPRXQWVRIVXJDUVDQGSRZHUREWDLQHGDUHKLJKO\GHSHQGHQW
RQWKHFXOWLYDUVXVHGVRUHVXOWVFDQQRWEHJHQHUDOL]HGDQGDQDO\VLVPXVWEHFDUULHGRQIRU
WKHVSHFLILFFXOWLYDUVWREHXVHG&ORVHWRRIDGGLWLRQDOOLJQRFHOOXORVLFVXJDUVFDQEH
REWDLQHGIURPKLJKILEHUIHHGVWRFNV+RZHYHUWKHSURGXFWLRQRIVXJDUVIURPEDJDVVH
RYHUHOHFWULFLW\UHTXLUHVORZHUSURGXFWLRQFRVWV
([LVWLQJGDWDRQWKHFRPSRVLWLRQRIFURSVLVQRWVXIILFLHQWWRFRPSOHWHPDWHULDODQG
HQHUJ\EDODQFHVIRUHQJLQHHULQJVWXGLHV0RUHGHWDLOHGFRPSRVLWLRQDOGDWDIRUHQHUJ\
FDQHDQGVZHHWVRUJKXPYDULHWLHVDUHUHTXLUHGWRHYDOXDWHWKHVHFURSVDVELRUHILQHU\¶V
IHHGVWRFN,WLVDOVRFULWLFDOWRHYDOXDWHVHDVRQDOIOXFWXDWLRQVRIWKHFRPSRVLWLRQDQGWKHLU
HIIHFWRQWKHRYHUDOOVXJDU\LHOGVDQGTXDOLW\
$&.12:/('*(0(176
7KLVSURMHFWZDVVXSSRUWHGE\$JULFXOWXUHDQG)RRG5HVHDUFK,QLWLDWLYH&RPSHWLWLYH
*UDQWQRIURPWKH86'$1DWLRQDO,QVWLWXWHRI)RRGDQG$JULFXOWXUH
5()(5(1&(6
$PHULFDQ6XJDU&DQH/HDJXH-XO\KWWSZZZDPVFORUJOHDUQ/RXLVLDQD
6XJDUFDQH6WDWLVWLFV"6RUW $UDJRQ'06XKUDQG9.RFKHUJLQ(YDOXDWLRQRIHQHUJ\FDQHDQGVZHHW
VRUJKXPDVIHHGVWRFNVIRUFRQYHUVLRQLQWRIXHOVDQGFKHPLFDOV6XJDU,QG
±
'D\'DQG/0DGVHQ7KHHFRQRPLFVRISURGXFLQJIHUPHQWDEOHVXJDUVIURP
VZHHWVRUJKXPDQGHQHUJ\FDQH$6,/68$J&HQWHU)DFWRU\2SHUDWLRQV6HPLQDU
±
'LDV003HUHLUDGD&XKQD50DFLHO)LOKR$%RQRPL&')-HVXVDQG&(9
5RVVHOO6LPXODWLRQRILQWHJUDWHGILUVWDQGVHFRQGJHQHUDWLRQELRHWKDQRO
SURGXFWLRQIURPVXJDUFDQHFRPSDULVRQEHWZHHQGLIIHUHQWELRPDVVSUHWUHDWPHQW
PHWKRGV-,QG0LFURELRO%LRWHFKQRO±
(QHUJ\LQGHSHQGHQFHDQGVHFXULW\DFWRI3/'HF67$7
*UDYRLV.&.LPEHQJ03RQWLI.%LVFKRIDQG%%DOGZLQ<LHOGDQGILEHU
FRQWHQWRIKLJKILEHUVXJDUFDQHFORQHV6XJDUFDQHUHVHDUFKDQQXDOSURJUHVVUHSRUW
/RXLVLDQD6WDWH$JU&HQWHU
+DOH$1RWLFHRIUHOHDVHRIDKLJKILEHUVXJDUFDQHYDULHW\+R6XJDU%XO
+XPELUG'5'DYLV/7DR&.LQFKLQ'+VX$$GHQ36FKRHQ-/XNDV%
2OWKRI0:RUOH\'6H[WRQDQG''XGJHRQ3URFHVVGHVLJQDQG
HFRQRPLFVIRUELRFKHPLFDOFRQYHUVLRQRIOLJQRFHOOXORVLFELRPDVVWRHWKDQRO'LOXWH
DFLGSUHWUHDWPHQWDQGHQ]\PDWLFK\GURO\VLVRIFRUQVWRYHU7HFK5HS15(/73
0D\
,&806$7KHGHWHUPLQDWLRQRIFRQGXFWLYLW\DVKLQUDZVXJDUEURZQVXJDUMXLFH
V\UXSDQGPRODVVHVRIILFLDO,&806$0HWKRGV%RRN*6
.LP06DQG')'D\&RPSRVLWLRQRIVXJDUFDQHHQHUJ\FDQHDQGVZHHW
VRUJKXPVXLWDEOHIRUHWKDQROSURGXFWLRQDW/RXLVLDQDVXJDUPLOOV-,QG0LFURELRO
%LRWHFKQRO±
15(//DERUDWRU\$QDO\WLFDOSURFHGXUHVIRUVWDQGDUGELRPDVVDQDO\VLV1RY
KWWSZZZQUHOJRYELRPDVVDQDO\WLFDOBSURFHGXUHVKWPO
86(QHUJ\,QIRUPDWLRQ$GPLQLVWUDWLRQ(OHFWULFSRZHUPRQWKO\ZLWKGDWDIRU
0D\-XO\7DEOH$$YHUDJHUHWDLOSULFHRIHOHFWULFLW\WRXOWLPDWH
FXVWRPHUVE\HQGXVHVHFWRUE\VWDWH0D\DQG&HQWVSHU.LORZDWWKRXU
KWWSZZZHLDJRYHOHFWULFLW\PRQWKO\
9LDWRU+30$OLVRQ.*UDYRLV.-+DQ'+DUUHOO$+RJDQ:3LWWPDQ0
6DODVVLDQG-:KDWOH\6ZHHWVRUJKXPIRUELRIXHOSURGXFWLRQLQ/RXLVLDQD
/RXLVLDQD$JU±