7KH+DJXH,QWHUQDWLRQDO0RGHO8QLWHG1DWLRQV4DWDU_WK±VWRI-DQXDU\
)RUXP
,VVXH
(&262&
6SHFLILFDFWLRQVUHODWHGWRWKHSDUWLFXODUQHHGVDQGSUREOHPVRI
ODQGORFNHGGHYHORSLQJFRXQWULHV
6WXGHQW2IILFHU 2OLYHU7XOO
3RVLWLRQ
3UHVLGHQW
,QWURGXFWLRQ
*HRJUDSK\PDWWHUVZKHQLWFRPHVWRSURJUHVV/DQGORFNHGFRXQWULHVIDFHVLJQLILFDQWKLQGUDQFHV
WRWKHLUGHYHORSPHQWEHFDXVHRIWKHGLIILFXOWLHVWKH\IDFHZKHQWU\LQJWRH[SRUWWKHLUJRRGVWRIRUHLJQ
PDUNHWV:LWKRXWGLUHFWVHDDFFHVVODQGORFNHGQDWLRQVKDYHQRDOWHUQDWLYHEXWWRSD\KLJKWUDQVLWIHHVWR
WKHLUQHLJKERUVIRUWKHJRRGVWKH\LQWHQGWRVHQGWREHVKLSSHGRYHUVHDV(YHQZLWKRXWWKHVHWUDQVLWIHHV
H[SRUWLQJEXVLQHVVHVIURPODQGORFNHGFRXQWULHVUHPDLQDWDGLVDGYDQWDJHEHFDXVHRIWKHKLJKHU
WUDQVSRUWFRVWVWKH\ZLOOLQHYLWDEO\IDFHLQRUGHUWRWDNHWKHLUJRRGVIXUWKHUGLVWDQFHVWRWKHQHDUHVWSRUW
7KLVFDQEHDQLVVXHIRUDQ\HFRQRP\EXWLWLVHYHQPRUHVRIRUGHYHORSLQJHFRQRPLHV0RUH
HFRQRPLFDOO\GHYHORSHGODQGORFNHGHFRQRPLHVVXFKDVWKRVHLQ(XURSHRIWHQILQGWKDWPRVWRIWKHLU
H[SRUWVFRQVLVWRIVHUYLFHVUDWKHUWKDQJRRGVZKLFKKDYHQRQHHGIRUVHDDFFHVV)XUWKHUPRUHZKDW
JRRGVDUHH[SRUWHGIURP0('&VDUHQRUPDOO\PRUHOLNHO\WREHWUDQVSRUWHGE\RWKHUPHDQVWKDQE\VHD
WRWKHLUXOWLPDWHGHVWLQDWLRQIRUH[DPSOHE\DLUIUHLJKWZKLFKDJDLQQHJDWHVWKHGLVDGYDQWDJHRIEHLQJ
ODQGORFNHG,QWKHGHYHORSLQJZRUOGKRZHYHUVLPSO\EHLQJODQGORFNHGFDQVLJQLILFDQWO\KLQGHUHFRQRPLF
SURJUHVV$VWKHFRVWVRIH[SRUWLQJSURGXFHWRWKHUHVWRIWKHZRUOGLQFUHDVHWKHSURILWVWKDWDFRXQWU\
FDQPDNHWKURXJKVXFKH[SRUWVDUHOLNHO\WREHORZHUWKDQLIWKHUHLWKDGGLUHFWDFFHVVWRWKHVHD
7KHFRQVHTXHQFHVRIWKHVHORZHUSURILWPDUJLQVPHDQWKDWOHVVPRQH\IURPWUDGLQJPDNHVLWV
ZD\EDFNLQWRWKHHFRQRP\RIWKHODQGORFNHGQDWLRQV±DQGWKXVWKHUHLVOHVVPRQH\DYDLODEOHWRVSHQG
RQKHDOWKFDUHHGXFDWLRQDQGLQIUDVWUXFWXUHZKLFKLVUHTXLUHGWRLQFUHDVHOLYLQJVWDQGDUGVLQDFRXQWU\,W
DOVRPDNHVLWPRUHGLIILFXOWWRLPSRUWFDSLWDOJRRGVIURPWKHGHYHORSHGZRUOGZKLFKDUHQHHGHGWR
LQGXVWULDOL]HDQDWLRQVLQFHLPSRUWVZLOOKDYHWRIDFHWKHVDPHH[WUDFRVWVDVH[SRUWVIURPDFRXQWU\GR
$VDUHVXOW81VWDWLVWLFVVKRZWKDWRIWKHZRUOG¶VSRSXODWLRQOLYLQJEHORZWKHSRYHUW\OLQHDUHIURP
ODQGORFNHGFRXQWULHV7KLVUHSRUWZLOOVKRZKRZWKHGLVDGYDQWDJHVIDFHGE\/DQGORFNHG/HVV'HYHORSHG
&RXQWULHV//'&VFDQEHPLWLJDWHGDQGWKXVFUHDWHDPRUHOHYHOSOD\LQJILHOGDFURVVWKHGHYHORSLQJ
5HVHDUFK5HSRUW_3DJHRI
7KH+DJXH,QWHUQDWLRQDO0RGHO8QLWHG1DWLRQV4DWDU_WK±VWRI-DQXDU\
ZRUOG
'HILQLWLRQRI.H\7HUPV
(FRQRPLF'HYHORSPHQW
7KHULVHLQOLYLQJVWDQGDUGVDFURVVWKHHFRQRP\:KLOVWWKLVRIWHQPHDQVSHRSOHEHFRPLQJULFKHU
DQGWKXVEHLQJDEOHWRDIIRUGPRUHJRRGVWKDWLPSURYHWKHLUOLYHVLWFDQDOVREHEURXJKWDERXW
EHFDXVHWKHJRYHUQPHQWVSHQGVPRUHRQVHUYLFHVOLNHKHDOWKFDUHDQGHGXFDWLRQDVZHOODVEXLOGLQJ
XSWKHFRXQWU\¶VLQIUDVWUXFWXUH$GHYHORSLQJFRXQWU\LVVDLGWRKDYHDORZHUVWDQGDUGRIOLYLQJ
DPRQJVWLWVSRSXODWLRQWKDQDGHYHORSHGFRXQWU\
/DQGORFNHG
/DQGORFNHGFRXQWULHVKDYHQRPDULWLPHERXQGDULHVLHWKH\KDYHQRFRDVW'LIILFXOWLHVLQIDFLOLWDWLQJ
RFHDQLFWUDGHGXHWRWKHH[WUDFRVWVLQYROYHGH[SODLQVZK\LQODQGDQGODQGORFNHGFRXQWULHVDUHDVDUH
KLVWRULFDOO\PRUHVSDUVHO\LQKDELWHGDQGSRRUHUWKDWUHJLRQVQHDUHUWKHFRDVW
&DSLWDOJRRGV
,QGXVWULDOPDFKLQHU\WKDWLVUHTXLUHGIRULQGXVWU\$VGHYHORSLQJFRXQWULHVUDUHO\PDNHWKHLURZQ
FDSLWDOHTXLSPHQWWKH\KDYHWRLPSRUWLWIURPWKHGHYHORSHGZRUOG/DQGORFNHGFRXQWULHVILQGLWPRUH
H[SHQVLYHWRGRWKLVEHFDXVHRIWKHKLJKHURYHUDOOFRVWVWKH\IDFHZKHQWUDGLQJZLWKWKHRXWVLGH
ZRUOGDQGWKXVWKHLUDELOLW\WRLQGXVWULDOL]HLVKDPSHUHG
0DQXIDFWXUHG*RRGV
*RRGVSURGXFHGWKDWKDYHEHHQSURFHVVHGLQVRPHZD\DQGVRDUHWKHUHIRUHGLIIHUHQWIURPWKHUDZ
PDWHULDOVIURPZKLFKWKH\ZHUHRULJLQDOO\PDGH$NH\SDUWRIHFRQRPLFGHYHORSPHQWLVVZLWFKLQJ
IURPDQHFRQRP\EDVHGPRVWO\SURGXFLQJSULPDU\JRRGVWRPDQXIDFWXUHGJRRGVZKLFKIHWFKKLJKHU
H[SRUWSULFHV
,QWHUQDWLRQDO7UDGH
7KHH[FKDQJHRIJRRGVDQGVHUYLFHVEHWZHHQGLIIHUHQWQDWLRQV7KLVFDQRQO\EHIDFLOLWDWHGWRDQ\
JUHDWGHJUHHZKHQWKHUHLVHDV\DFFHVVE\DFRXQWU\WRJOREDOPDUNHWV/DQGORFNHGFRXQWULHVGRQRW
KDYHWKHVDPHDELOLW\WRWUDGHYLDWKHVHDZLWKRWKHUQDWLRQVZLWKRXWSD\LQJH[RUELWDQWFRVWVDQGVR
FDQQRWEHQHILWDVPXFKIURPWUDGHDVWKHLUFRDVWDOQHLJKERUV
)UHH7UDGH$JUHHPHQW)7$
5HVHDUFK5HSRUW_3DJHRI
7KH+DJXH,QWHUQDWLRQDO0RGHO8QLWHG1DWLRQV4DWDU_WK±VWRI-DQXDU\
$QDJUHHPHQWEHWZHHQWZRRUPRUHFRXQWULHVQRWWROHY\WDULIIVDJDLQVWWKHPRYHPHQWRIHDFKRWKHU¶V
JRRGVDFURVVQDWLRQDOERXQGDULHV,QWKHFDVHRIDODQGORFNHGFRXQWU\WKLVZRXOGDVVLVWLQLWEHLQJ
DEOHWRJHWWKHLUJRRGVWRWKHQHDUHVWVHDSRUWZLWKRXWSD\LQJDQ\FRVWVWRWKHQDWLRQZKRVHWHUULWRU\
WKH\ZRXOGKDYHWRFURVV
*ORELOL]DWLRQ
,QHFRQRPLFWHUPVJOREDOL]DWLRQLVWKHLQWHJUDWLRQRIWKHZRUOG¶VUHJLRQDOORFDODQGQDWLRQDO
HFRQRPLHVLQWRDVLQJOHJOREDOPDUNHW7KLVPHDQVWKDWPRGHUQHFRQRPLFJURZWKLVODUJHO\EDVHGRQ
WUDGHDQGFRXQWULHVKDYHDWWDFKJUHDWHULPSRUWDQFHWKDQHYHUEHIRUHWRIDFLOLWDWLQJWUDGHDURXQGWKH
ZRUOG
%DFNJURXQG,QIRUPDWLRQ
'XULQJWKHSDVWIHZGHFDGHVWKHLPSRUWDQFHWRJRYHUQPHQWVLQDWWUDFWLQJWUDGHIORZVKDV
LQFUHDVHGKXJHO\GXHWRWKHHIIHFWVRIJOREDOL]DWLRQ,QFUHDVLQJO\WKHVWUHQJWKRIDQHFRQRP\LV
GHSHQGHQWRQKRZLWLQWHUDFWVZLWKLQWKHJOREDOHFRQRP\LQWHUPVRILWVWUDGHIORZV±DQGODQGORFNHG
QDWLRQVDUHLQDSHUPDQHQWGLVDGYDQWDJHLQWKLVUHVSHFWJLYHQWKHUHVWULFWLRQVWKDWH[LVWWRWKHIDFLOLWDWLRQ
RIWUDGHLQWKRVHFRXQWULHV
7KHIDFWRUVWKDWOLPLWWUDGHIRUODQGORFNHGQDWLRQVYDU\IURPQDWLRQWRQDWLRQDVZLOOWKHH[WHQWWR
ZKLFKEHLQJODQGORFNHGLQWKHILUVWSODFHFDQEHEODPHGIRUWKHFRPSDUDWLYHODFNRIGHYHORSPHQWLQD
JLYHQ//'&7KXVLWLVFUXFLDOWRXQGHUVWDQGDOORIWKHPDMRULVVXHVWKDWODQGORFNHGQDWLRQVDUHOLNHO\WR
IDFHDQGWKHQVHHKRZWKHVHLVVXHVFDQEHFRPSRXQGHGWRPDNHHFRQRPLFGHYHORSPHQWVLJQLILFDQWO\
PRUHGLIILFXOWWKDQLWZRXOGRWKHUZLVHEH
+LJKHU7UDQVSRUW&RVWV
,WLVQRJUHDWVXUSULVHWKDWWKHUHH[LVWVDFRUUHODWLRQEHWZHHQWUDQVSRUWFRVWVIRUH[SRUWHGJRRGDQG
WKHGLVWDQFHRYHUZKLFKWKH\KDYHWRWUDYHOWRIURPWKHPDUNHW$VVXFKODQGORFNHGFRXQWULHVZLOORIWHQ
ILQGLWIDUPRUHFRVWO\WRWUDGHVLPSO\EHFDXVHRIWKHSK\VLFDOGLVWDQFHWKH\ILQGWKHPVHOYHVIURPWKH
QHDUHVWVHDSRUWIURPZKHUHWKH\ZRXOGEHDEOHWRUHDFKJOREDOPDUNHWV7KLVVLJQLILFDQWO\HURGHVWKH
FRPSHWLWLYHQHVVRIH[SRUWVIURPWKHVHGHYHORSLQJFRXQWULHVEHFDXVHWKHKLJKHUFRVWVWKH\IDFHPHDQ
WKDWWKH\KDYHWRFKDUJHKLJKHUSULFHV'HYHORSLQJFRXQWULHVWHQGWRIRFXVRQH[SRUWLQJFRPPRGLWLHVDQG
XQIRUWXQDWHO\IRUODQGORFNHGFRXQWULHVWKHVHRIWHQIDFHWKHKLJKHVWWUDQVSRUWFRVWVLQWKHILUVWSODFH
EHFDXVHRIWKHLUEXON
'DWDIURPWKH,QWHUQDWLRQDO0RQHWDU\)XQG,0)KDVVKRZQWKDWRQDYHUDJHODQGORFNHGGHYHORSLQJ
5HVHDUFK5HSRUW_3DJHRI
7KH+DJXH,QWHUQDWLRQDO0RGHO8QLWHG1DWLRQV4DWDU_WK±VWRI-DQXDU\
FRXQWULHVVSHQGDOPRVWWLPHVPRUHRIWKHLUH[SRUWHDUQLQJVLQVLPSO\SD\LQJIRUWKHH[WUDWUDQVSRUW
FRVWVDQGLQVXUDQFHSD\PHQWVWKDWWKH\QHHGWRWUDQVSRUWWKHLUJRRGVRYHUORQJHUGLVWDQFHV7KLV
KLJKOLJKWVWKHGLVDGYDQWDJHWKDWVXFKQDWLRQVDUHDWHYHQLQUHODWLRQWRRWKHUGHYHORSLQJHFRQRPLHV,Q
IDFWKLJKWUDQVSRUWFRVWVKDYHEHHQVKRZQWRDFWDVDQHYHQJUHDWHUEDUULHUWRWUDGHIRUPDQ\FRXQWULHV
WKDQWKHWDULIIVSXWLQSODFHE\GHYHORSHGQDWLRQVWRLPSRUWVZKLFKW\SLFDOO\YDU\IURPDURXQG
,QIUDVWUXFWXUH
$IHDWXUHFRPPRQWRDOOGHYHORSLQJQDWLRQVLVDODFNRILQYHVWPHQWLQLQIUDVWUXFWXUH/DQGORFNHG
GHYHORSLQJQDWLRQVDUHOLNHO\WRILQGWKDWWKHLULPPHGLDWHQHLJKERUVWKURXJKZKRPWKH\QHHGWR
WUDGHZLOOVXIIHUIURPVLPLODUSUREOHPVZLWKWKHLULQIUDVWUXFWXUHEHFDXVHRIDODFNRIGHYHORSPHQW
2IFRXUVH//'&VKDYHQRRSWLRQEXWWRJRE\VHDLQRUGHUWRH[SRUWWKHLUJRRGVDQGVRDUHOLPLWHG
LQWKHQXPEHURIWUDQVLWQDWLRQ¶VSRUWVWKH\FDQH[SRUWIURP7KLVDJDLQZLOOLQFUHDVHWKHWLPHDQG
FRVWVLQWUDQVSRUWLQJJRRGVWRWKHQHDUHVWVHDSRUW3RRUUDLORUURDGOLQNVVHYHUHO\KLQGHUWKH
TXDQWLW\RIJRRGVWKDWFDQEHWUDGHGEHWZHHQDODQGORFNHGQDWLRQDQGWKHRXWVLGHZRUOG$
SDUWLFXODUO\IUXVWUDWLQJIDFWIURPWKHSHUVSHFWLYHRIWKHODQGORFNHGQDWLRQVWKHPVHOYHVLVWKDWHYHQ
LIWKDWFRXQWU\WDNHVWKHWLPHWRLQYHVWLQLWVWUDQVSRUWLQIUDVWUXFWXUHLWPD\VWLOOEHGHSHQGHQWRQLWV
QHLJKERUWRGRWKHVDPHEHIRUHLWZLOOUHDOL]HDQ\QRWLFHDEOHHFRQRPLFEHQHILWLQWHUPVRIWUDGH
YROXPHV
7UDQVLW&RVWV
2WKHUWKDQWUDQVSRUWFRVWVODQGORFNHGQDWLRQVDOVRKDYHWRGHDOZLWKKLJKHUFRVWVLQWKHIRUPRI
WKHDGPLQLVWUDWLYHEXUGHQRISDVVLQJWKHLUJRRGVWKURXJKWKHWHUULWRU\RIDQRWKHUFRXQWU\7KHVHFDQEH
PDGHXSRIFXVWRPVGXWLHVOHYLHGE\WKHPDULWLPHQDWLRQIRUWKHSULYLOHJHRIVKLSSLQJWKHLUJRRGVWKURXJK
WKHLUVRYHUHLJQWHUULWRU\DQGIRUPDNLQJXVHRIWKHLUSRUWIDFLOLWLHV7KHVL]HRIWKHVHFRVWVYDULHVEXWFDQ
EHDVKLJKDVRIWKHRYHUDOOIUHLJKWLQJFRVWV,QWKHFDVHRIVRPHODQGORFNHGFRXQWULHVHVSHFLDOO\LQ
$IULFDLWPD\EHQHFHVVDU\WRWUDQVSRUWH[SRUWVWKURXJKVHYHUDOERUGHUFURVVLQJVEHIRUHWKH\JHWWRSRUW±
DQGVRWKHVHWUDQVLWIHHVKDYHWREHSDLGVHYHUDOWLPHVRYHU/HVVGLUHFWDGPLQLVWUDWLYHFRVWVFDQEH
LQFXUUHGEHFDXVHRILQGLYLGXDOQDWLRQ¶VFXVWRP¶VSURFHGXUHV3RRUDGPLQLVWUDWLYHSODQQLQJDQG
FRRSHUDWLRQEHWZHHQODQGORFNHGQDWLRQVDQGWKHLUPDULWLPHQHLJKERUVFDQFDXVHUHJXODUGHOD\V7KLV
VORZVGRZQWKHH[SRUWSURFHVVIXUWKHULQFUHDVHVRYHUDOOFRVWVRIWUDQVSRUWDWLRQDQGDOVRPDNHV
SURGXFHUVIURPWKDWFRXQWU\ORRNXQUHOLDEOH)UHTXHQWGHOD\VRIWKLVNLQGPD\EHHQRXJKIRULPSRUWHUVRI
JRRGVIURPODQGORFNHGFRXQWULHVWREX\WKHLUJRRGVIURPHOVHZKHUHLILWPHDQVWKH\FDQDYRLGVXFK
VWRSSDJHV,WLVZRUWKUHPHPEHULQJWKDWVXFKDGPLQLVWUDWLYHLQFRPSHWHQFHQRUPDOO\KDVOLWWOHWRGRZLWK
WKHODQGORFNHGFRXQWU\LWVHOIEXWLVWKHIDXOWRIWKHLUFRDVWDOQHLJKERUV\HWLWLVWKHODQGORFNHGQDWLRQWKDW
ZLOOVXIIHUWKHPRVWEHFDXVHRILW
3ROLWLFDO6WDELOLW\
5HVHDUFK5HSRUW_3DJHRI
7KH+DJXH,QWHUQDWLRQDO0RGHO8QLWHG1DWLRQV4DWDU_WK±VWRI-DQXDU\
/DQGORFNHGFRXQWULHVZLOODOVRILQGWKHPVHOYHVGHSHQGHQWRQKDYLQJVWURQJSROLWLFDOUHODWLRQVZLWK
WKHLUQHLJKERUV,IDODQGORFNHGQDWLRQDQGLWVWUDQVLWQHLJKERUDUHLQFRQIOLFWHLWKHUPLOLWDULO\RU
GLSORPDWLFDOO\WKHQLWLVYHU\OLNHO\WKDWERUGHUVFDQEHEORFNHGRUH[WUDLPSHGLPHQWVSODFHGRQWKH
WUDQVSRUWRIH[SRUWVWKURXJKWKDWFRXQWU\7KLVLVDSDUWLFXODULVVXHLQ&HQWUDO$VLDGXHWRWKHERUGHU
GLVSXWHVFRPPRQLQWKDWUHJLRQRIWKHZRUOG7UDGHFDQEHVWRSSHGRQDUHJXODUEDVLVIRUSROLWLFDO
SXUSRVHV±HYHQWRWKHH[WHQWRIGHIHQGLQJERUGHUVZLWKODQGPLQHVDQGE\LPSRVLQJSK\VLFDOEORFNDJHV
7KLVKDVVLJQLILFDQWO\ZHDNHQHGUHJLRQDOFRRSHUDWLRQE\LQFUHDVLQJGLVWUXVWEHWZHHQQHLJKERULQJVWDWHV
&LYLOFRQIOLFWZLWKLQWUDQVLWFRXQWULHV
7UDGHFDQEHGLVUXSWHGIRUSROLWLFDOUHDVRQVHYHQLQFLUFXPVWDQFHVZKHUHLWKDVJRRGUHODWLRQV
ZLWKLWVWUDQVLWFRXQWU\:KHQWUDQVLWFRXQWULHVHQJDJHLQFLYLOZDUWKHQLWFDQEHFRPHWRRFKDRWLF
WRWUDQVSRUWJRRGVWRSRUW,QWHUQDOFRQIOLFWVLQQH[WGRRUQDWLRQVKDYHKDGDQRWDEOHLPSDFWRQWKH
DELOLW\RIDQXPEHURIODQGORFNHG$IULFDQFRXQWULHVWRGHYHORSLQUHFHQW\HDUV)RUH[DPSOH0DODZL
ORVWLWVDFFHVVWRQHDUE\SRUWVZKHQPRVWRILWVH[SRUWWUDQVLWQHLJKERUV0R]DPELTXH1DPLELD
DQG$QJRODZHUHHQJDJHGLQFLYLOZDUV$VDUHVXOW0DODZLZDVIRUFHGWRH[SRUWLWVJRRGVIURP
SRUWVLQ6RXWK$IULFDZKLFKLQYROYHGWDNLQJDPXFKORQJHURYHUODQGURRWWKDQKDGSUHYLRXVO\EHHQ
WKHFDVH
0DMRU&RXQWULHVDQG2UJDQL]DWLRQV,QYROYHG
:RUOG7UDGH2UJDQL]DWLRQ:72
7KH:RUOG7UDGH2UJDQL]DWLRQLVDQLQWHUJRYHUQPHQWDORUJDQL]DWLRQ,*2WKDWKHOSVIDFLOLWDWH
WUDGHDJUHHPHQWVEHWZHHQJRYHUQPHQWV,WVDLPLVWRSURPRWHIUHHWUDGHDQGSURYLGHDIRUXPIRUVHWWOLQJ
WUDGHGLVSXWHV:KHQOHDGHUVIURPODQGORFNHGOHVVGHYHORSHGFRXQWULHV//'&VPHWIRUWKHILUVWWLPHLQ
$OPDW\.D]DNKVWDQWRIRUPWKH$OPDW\3URJUDPRI$FWLRQ6HHSUHYLRXVDWWHPSWVDWVROYLQJWKHLVVXH
WKH\DJUHHGWKDWWKH\VKRXOGEHIDVWWUDFNHGLQWRPHPEHUVKLSRIWKH:72WRKHOSWKHPQHJRWLDWHD
UHGXFWLRQLQFXVWRPVGXWLHVZLWKWKHLUPDULWLPHQHLJKERUV
812+5//6
7KH2IILFHRIWKH+LJK5HSUHVHQWDWLYHIRUWKH/HDVW'HYHORSHG&RXQWULHV/DQGORFNHG'HYHORSLQJ
&RXQWULHVDQGWKH6PDOO,VODQG'HYHORSLQJ6WDWHV812+5//6ZDVVHWXSLQ,WZRUNVWRIRVWHU
FRRSHUDWLRQEHWZHHQODQGORFNHGVWDWHVDVLWGLGZLWKWKH$OPDW\'HFODUDWLRQ,WDOVRXQGHUWDNHV
DGYRFDF\ZRUNLQIDYRURI//'&VVRWKDWWKHLUVLWXDWLRQJDLQVWKHLQWHUQDWLRQDOFRPPXQLW\¶VDWWHQWLRQWR
WKHH[WHQWWKDWLWGHVHUYHV,WZRUNVDORQJVLGHJRYHUQPHQWVWKHPHGLDDQGDFDGHPLDLQRUGHUWRUHVHDUFK
SUREOHPVDQGVROXWLRQVUHODWHGWRODQGORFNHGFRXQWULHV
5HVHDUFK5HSRUW_3DJHRI
7KH+DJXH,QWHUQDWLRQDO0RGHO8QLWHG1DWLRQV4DWDU_WK±VWRI-DQXDU\
.D]DNKVWDQ
.D]DNKVWDQLVWKHODUJHVWODQGORFNHGFRXQWU\LQWKHZRUOGDQGLVDOVRWKHIXUWKHVWIURPWKHQHDUHVW
SRUWNP,WVSULQFLSOHH[SRUWLVRLO±EXWZLWKVXFKKLJKFRVWVRIH[SRUWLQJWKHLUQDWXUDOUHVRXUFHVWKH
LQFRPHWKH\UHFHLYHIURPWKLVLVQRZKHUHQHDUDVKLJKDVLWFRXOGEH$VDUHVXOW.D]DNKVWDQKDVWDNHQ
WKHLQLWLDWLYHLQEXLOGLQJXSFRRSHUDWLRQEHWZHHQRWKHU//'&67KHILUVWHYHUPHHWLQJRIWUDGHPLQLVWHUV
IURPWKHVHFRXQWULHVWRRNSODFHLQWKH.D]DNKVWDQLFDSLWDO$OPDW\LQ±DQGWKHUHKDYHEHHQUHJXODU
PHHWLQJVWKHUHWRWKLVGDWH$WWKHODVWVXFKPHHWLQJLQ6HSWHPEHUWKH.D]DNKVWDQLGHOHJDWLRQ
VWUHVVHGWKDWµ//'&VVKRXOGSURPRWHSURGXFWLRQRIKLJKYDOXHEXWORZEXONJRRGVVXFKDVSUHFLVLRQ
LQVWUXPHQWV¶EHFDXVHWKLVDOORZVIRUWKHJUHDWHVWLQFRPHIURPH[SRUWVZLWKRXWLQFXUULQJODUJHFRVWV
%XUXQGL
%XUXQGLLVDJRRGFDVHVWXG\RIDQ//'&WKDWKDVLVGHSHQGHQWRQLWVQHLJKERUVLQRUGHUWR
FRQGXFWLWVRZQWUDGHZLWKWKHRXWVLGHZRUOG:KLOVWKDYLQJFRPSDUDWLYHO\JRRGLQWHUQDOURDGQHWZRUNVLW
FDQQRWFRQQHFWWRWKHQHDUHVWSRUWDW'DUHV6DODDPLQ7DQ]DQLDEHFDXVHRIODFNRILQYHVWPHQWLQ
LQIUDVWUXFWXUHWKHUH,QVWHDGLWKDVWRUHO\RQKDYLQJVHDDFFHVVYLD.HQ\DDQG0R]DPELTXHEXWSROLWLFDO
LQVWDELOLW\LQERWKRIWKHVHFRXQWULHVKDVPHDQWWKDWLQWKHSDVWLWKDVEHHQLPSRVVLEOHWRWUDQVSRUWJRRGV
WKURXJK$WVRPHSRLQWV%XUXQGLKDGWRWUDQVSRUWLWVJRRGVWRWKHVHDYLD6RXWK$IULFDDORQJDNP
RYHUODQGURXWH7KHUHIRUHWKURXJKQRIDXOWRILWVRZQ%XUXQGLKDVIRXQGWUDGLQJZLWKWKHRXWVLGHZRUOG
LQFUHDVLQJO\GLIILFXOWDQGH[SHQVLYH
,QGLD
,QGLDKDVFRQGXFWHGWUDGHDJUHHPHQWVZLWKLWVWZR//'&QHLJKERUV1HSDODQG%KXWDQWRHQVXUH
WKDWWKH\GRQRWVXIIHUDOORIWKHGLVDGYDQWDJHVWKDWODQGORFNHGFRXQWULHVWHQGWRIDFH)LUVWO\LWKDVDJUHHG
QRWWRFKDUJHGXWLHVRQH[SRUWVIURPWKHVHFRXQWULHVVRWKDWWKH\FDQIUHHO\XVH,QGLD¶VSRUWIDFLOLWLHVDVD
UHVXOW7KLVLVRQO\PDGHSRVVLEOHE\WKHYHU\FORVHUHODWLRQVEHWZHHQ,QGLDDQGWKHVHWZR+LPDOD\DQ
VWDWHV,WGRHVKRZHYHUVKRZKRZHDV\LWFDQEHIRUPDQ\RIWKHFXVWRPVFKDUJHVWKDW//'&VIDFH
ZKHQH[SRUWLQJWKHLUSURGXFHWREHIRUJRQHLQWKHLQWHUHVWVRIUHJLRQDOFRRSHUDWLRQDQGGHYHORSPHQW
(XURSHDQ8QLRQ(8
7KH(8FRQWDLQVVHYHUDOODQGORFNHGQDWLRQVRILWVRZQVXFKDV/X[HPERXUJDQGWKH&]HFK
5HSXEOLF\HWQRQHRIWKHVHFDQEHVDLGWREHXQGHUGHYHORSHG7KH(8GRHVKRZHYHUUHFRJQL]HWKH
DGGHGGLIILFXOWLHVWKDWODQGORFNHGQDWLRQVLQRWKHUSDUWVRIWKHZRUOGIDFH±VXFKDVKLJKWUDQVSRUWDQG
FRPPHUFLDOWUDQVDFWLRQFRVWV,WKDVEHJXQWRSULRULWL]HDLGWRVXFKFRXQWULHVLQRUGHUWRKHOSWKHPDQG
WKHLUQHLJKERUVEXLOGXSWKHLULQIUDVWUXFWXUHDQGWKXVLQFUHDVHWUDGHYROXPHV,WFRXOGKRZHYHUGRPRUHWR
XVHLWVSROLWLFDOLQIOXHQFHWRSXWWKLVLVVXHKLJKHURQWKHDJHQGDRIWKHZRUOG¶VHFRQRPLFIRUXPV±DVZHOO
DVWDNLQJWKHOHDGLQUHGXFLQJLPSRUWWDULIIVWR//'&QDWLRQVVHHSRVVLEOHVROXWLRQV
5HVHDUFK5HSRUW_3DJHRI
7KH+DJXH,QWHUQDWLRQDO0RGHO8QLWHG1DWLRQV4DWDU_WK±VWRI-DQXDU\
7LPHOLQHRI(YHQWV
'DWH
'HVFULSWLRQRI(YHQW
:DURIWKH3DFLILFLQZKLFK%ROLYLDORVWLWVFRDVWOLQH
WR&KLOHDQGEHFDPHODQGORFNHGDVDUHVXOW7KLV
UHPDLQVDPDMRUSROLWLFDOLVVXHWRWKLVGD\±ZLWK
IUHTXHQWGLVSXWHVDERXWWUDGLQJDQGILVKLQJULJKWV
EHWZHHQWKHWZRFRXQWULHVDV%ROLYLDDWWHPSWVWR
UHWDLQLWVDFFHVVWRWKHVHDYLDLWVROGWHUULWRU\
,Q7UHDW\RI9HUVDLOOHVDIWHU::3RODQGZDV
JLYHQDFFHVVWRWKHVHDWRSUHYHQWLWIURPEHLQJ
ODQGORFNHGE\FDUYLQJWKHVRFDOOHGµ'DQ]LJ
&RUULGRU¶WKURXJK*HUPDQWHUULWRU\7KLVHIIHFWLYHO\
FXW*HUPDQ\LQWZRDQGZDVDVRXUFHRIPXFK
UHVHQWPHQWLQWKH\HDUVOHDGLQJXSWRWKH::
8QLWHG1DWLRQV&RQYHQWLRQRIWKH6HDLQSULQFLSOH
VWDWHVWKDWDOOQDWLRQVVKRXOGKDYHIUHHDFFHVVWR
WKHVHD
(ULWUHDYRWHVIRULQGHSHQGHQFHIURP(WKLRSLD7KLV
OHIW(WKLRSLDDVDODQGORFNHGQDWLRQ±VXEVHTXHQW
FRQIOLFWVEHWZHHQWKHWZRFRXQWULHVDUHSDUWO\GXH
WRWUDGHGLVSXWHVDV(WKLRSLDDVVHUWVLWVULJKWWRVHD
DFFHVV
5HVHDUFK5HSRUW_3DJHRI
7KH+DJXH,QWHUQDWLRQDO0RGHO8QLWHG1DWLRQV4DWDU_WK±VWRI-DQXDU\
6RXWK6XGDQEHFRPHVLQGHSHQGHQWIURP6XGDQ
7UDGHGLVSXWHVPHDQWWKDW6RXWK6XGDQFRXOGQRW
H[SRUWLWVRLOXVLQJSLSHOLQHVUXQQLQJWKURXJKWKH
1RUWKDVLWKDGGRQHEHIRUHLQGHSHQGHQFH7KLV
KDUPHGERWKQDWLRQV¶HFRQRPLHV±DVWKH6RXWK
FRXOGQRWHDUQH[SRUWUHYHQXHDQGWKH1RUWKFRXOG
QRWEHQHILWIURPFXVWRPVGXWLHVRQWKHRLO
WUDQVSRUWHGWKURXJKLWVWHUULWRU\
5HOHYDQW817UHDWLHVDQG(YHQWV
Ɣ
8QLWHG1DWLRQV&RQYHQWLRQRQWKH/DZRIWKH6HD8QLWHG1DWLRQV
Ɣ
7KLUG8QLWHG1DWLRQV&RQIHUHQFHRQWKH/HDVW'HYHORSHG&RXQWULHV$
Ɣ
$OPDW\'HFODUDWLRQ$&21)
Ɣ
$OPDW\0LQLVWHULDO'HFODUDWLRQ6HS
3UHYLRXV$WWHPSWVWRVROYHWKH,VVXH
7KH8QLWHG1DWLRQV&RQYHQWLRQRQWKH/DZRIWKH6HDVWDWHVWKDWODQGORFNHGFRXQWULHVHDFKKDYH
WKHULJKWWRVHDDFFHVV,QSUDFWLFHWKRXJKQRWDOO81PHPEHUVWDWHVKDYHVLJQHGXSWRWKLVFRQYHQWLRQ
VLQFHLWZDVFUHDWHGQZKLFKPHDQVWKDWVHDDFFHVVLVVWLOOGHSHQGHQWRQUHODWLRQVKLSVZLWK
QHLJKERULQJPDULWLPHVWDWHV
7KH$OPDW\GHFODUDWLRQRIZDVWKHILUVWWLPHWKDWPLQLVWHUVIURPGLIIHUHQW//'&6PHWDQG
DJUHHGRQDSODQRIDFWLRQ,WLGHQWLILHGSULRULWLHVIRUODQGORFNHGQDWLRQVWRFRQVLGHULQUHODWLRQWRWKHLU
GHYHORSPHQW
Ɣ
3ROLF\LPSURYHPHQWV±UHODWLQJWRFXVWRPVEXUHDXFUDF\DQGIHHVWKDWDUHOLNHO\WRLQFUHDVHIHHV
IRUH[SRUWV
Ɣ
,PSURYHGUDLOURDGDQGDLULQIUDVWUXFWXUH
Ɣ
,QWHUQDWLRQDOWUDGHPHDVXUHVWRJLYHSUHIHUHQFHWRODQGORFNHGFRXQWULHVLQWUDGHDJUHHPHQWV
5HVHDUFK5HSRUW_3DJHRI
7KH+DJXH,QWHUQDWLRQDO0RGHO8QLWHG1DWLRQV4DWDU_WK±VWRI-DQXDU\
Ɣ
7HFKQLFDODQGILQDQFLDODVVLVWDQFHIURPGRQRUFRXQWULHVWRKHOS//'&6LPSOHPHQWWKHDERYH
SRLQWV
Ɣ
0RQLWRULQJDJUHHPHQWVRQKRZWRIROORZPHHWLQJXSZLWKIXUWKHUFRRSHUDWLRQLQWKHIXWXUH
:KLOVWWKLVDJUHHPHQWLGHQWLILHGDOOWKHPDLQIRFXVSRLQWVIRU//'&6WRLPSURYHWKHLUGHYHORSPHQW
WKHUHLVRQO\VRPXFKWKH//'&VFDQDFKLHYHRQWKHLURZQ1HLJKERULQJWUDQVLWVWDWHVKDYHKDGOLWWOH
LQFHQWLYHWRJUDQWODQGORFNHGFRXQWULHVWKHSUHIHUHQWLDOWUDGHWHUPVWKDWWKH\QHHGWRKHOSGHYHORSDQGVR
WKHFRUHLVVXHVIRU//'&VVWLOOUHPDLQLQPRVWFDVHV
3RVVLEOH6ROXWLRQV
7KHLQWHUQDWLRQDOFRPPXQLW\KDVDQREOLJDWLRQWRVWHSXSLWVKHOSWR//'&V7KLVFRXOGEH
DFKLHYHGWRVRPHH[WHQWLIPRUHDWWHQWLRQLVKHHGHGWRWKH$OPDW\'HFODUDWLRQ¶VFDOOIRUGRQRUFRXQWULHVWR
DVVLVW//'&VLQLPSURYLQJWKHLULQIUDVWUXFWXUH7KLVPD\HQDEOHWKHPWRH[SRUWWKHLUJRRGVPRUHFKHDSO\
DQGLQJUHDWHUTXDQWLWLHVWKDQWKH\FRXOGEHIRUH+RZHYHUWKLVZRXOGKDYHOLWWOHLPSDFWXQOHVVVLPLODU
LQIUDVWUXFWXUHSURMHFWVZHUHXQGHUWDNHQLQWKHWUDQVLWFRXQWULHVWKDWJRRGVZLOOKDYHWRSDVVWKURXJKLQDQ\
FDVH'HYHORSHGFRXQWULHVZRXOGWKXVKDYHWRPDNHDODUJHFRPPLWPHQWLIWKH\ZHUHWRPDNHJRRGRI
WKLVREOLJDWLRQZKLFKWKH\PD\QRWEHLQFOLQHGWRGR
$VLPSOHUVROXWLRQFRXOGEHIRUGHYHORSHGFRXQWULHVWRJLYHH[SRUWVIURP//'&VDSUHIHUHQWLDOWDULII
WKDWZRXOGEHORZHUWKDQWKHRQHWKH\ZRXOGQRUPDOO\FKDUJH7\SLFDOO\WDULIIVIRUGHYHORSLQJFRXQWULHV
ZLVKLQJWRH[SRUWWRWKHGHYHORSHGZRUOGKDYHWRSD\WDULIIVRIDURXQG,IH[FHSWLRQVZHUHPDGHIRU
JRRGVIURP//'&VWKHQLWZRXOGQHJDWHWKHKLJKHUFRVWVWKDWWKHVHFRXQWULHVKDYHWRSD\LQWUDQVSRUWLQJ
WKHLUJRRGVWRWKHUHVWRIWKHZRUOGLQWKHILUVWSODFH7KXVDOHYHOSOD\LQJILHOGIRUDOOOHVVHFRQRPLFDOO\
GHYHORSHGFRXQWULHVFRXOGSRWHQWLDOO\EHFUHDWHGZKLFKZRXOGDOORZ//'&VWRHDUQDVLPLODUDPRXQWIURP
WKHLUH[SRUWVDVWKHLUQHLJKERUV
7KHUHLVDOVRDORWWREHVDLGIRUIDFLOLWDWLQJPRUHIUHHWUDGHDJUHHPHQWVEHWZHHQ//'&VDQGWKHLU
WUDQVLWFRXQWULHV7KLVZRXOGVWRSWKHQHHGIRUWKHPWRSD\KLJKFXVWRPVGXWLHVIRUWKHSULYLOHJHRIXVLQJ
PRYLQJJRRGVWKURXJKWKHWUDQVLWFRXQWU\¶VWHUULWRU\7KLVLVVRPHWKLQJWKDW,*2VOLNHWKH:72VSHFLDOL]H
LQDFKLHYLQJ0RUHQHHGVWREHGRQHLQUHFRJQL]LQJKRZVXFKDJUHHPHQWVFDQEHLQWKHLQWHUHVWVRI
UHJLRQDOGHYHORSPHQWDQGKHOSIRVWHUIULHQGO\SROLWLFDOUHODWLRQVEHWZHHQQHLJKERUV
%LEOLRJUDSK\
812+5//6/DQGORFNHG'HYHORSLQJ&RXQWULHV$ERXW//'&V8QRKUOOVRUJ81-DQ
:HE2FWKWWSZZZXQRKUOOVRUJHQOOGF!
2IILFHRIWKH+LJK5HSUHVHQWDWLYHIRUWKH/HDVW'HYHORSHG&RXQWULHV/DQGORFNHG'HYHORSLQJ
&RXQWULHVDQG6PDOO,VODQG'HYHORSLQJ6WDWHV2+5//6+RPH811HZV&HQWHU81QG:HE
5HVHDUFK5HSRUW_3DJHRI
7KH+DJXH,QWHUQDWLRQDO0RGHO8QLWHG1DWLRQV4DWDU_WK±VWRI-DQXDU\
2FWKWWSZZZXQRUJVSHFLDOUHSRKUOOVOOGFGHIDXOWKWP!
/$1'/2&.('&28175,(61(('75$163257,1)5$6758&785(5(*,21$/
&223(5$7,2172$&+,(9(0,//(11,80*2$/6811HZV&HQWHU810DU:HE2FW
KWWSZZZXQRUJ1HZV3UHVVGRFVGHYGRFKWP!
ª%HLQJ/DQGORFNHG/LVVDQ2QOLQH/LVVDQ$XJ:HE2FW
KWWSOLVVDQRQOLQHFRPEORJ"S !
:25/'75$'(25*$1,=$7,21:721S:HE2FW
KWWSZZZZWRRUJHQJOLVKQHZVBHQHZVBHIDFBVHSBHKWP!
BBB/DQGORFNHG'HYHORSLQJ&RXQWULHV//'&V1DWLRQV2QOLQHFRP1DWLRQV2QOLQHQG:HE
2FWKWWSZZZQDWLRQVRQOLQHRUJRQHZRUOGGHYHORSLQJBFRXQWULHVKWP!
/DQGORFNHG&RXQWU\:LNLSHGLD:LNLPHGLD)RXQGDWLRQ0DU:HE2FW
KWWSHQZLNLSHGLDRUJZLNL/DQGORFNHGBFRXQWU\!
%XVLQHVV3RUWDORI,QGLD7UDGH7UDGH$JUHHPHQWV%XVLQHVV3RUWDORI,QGLD7UDGH7UDGH
$JUHHPHQWV*RYHUQPHQWRI,QGLDQG:HE2FW
KWWSEXVLQHVVJRYLQWUDGHWUDGHBDJUHHPHQWVSKS!
5HVHDUFK5HSRUW_3DJHRI
© Copyright 2026 Paperzz