6WXGLHVLQ+RQRURI&ULVWLDQ6FKXVWHU

DWKLVWK$QQLYHUVDU\



 Ä$OH[DQGUX WHIXOHVFX´*RUM&RXQW\0XVHXP

6WXGLHVLQ+RQRURI&ULVWLDQ6FKXVWHU
DWKLVWK$QQLYHUVDU\

(GLWRUV
9DOHULX6vUEX$OH[DQGUD&RP DDQG'XPLWUX+RUWRSDQ

(GLWXUD,VWURVD0X]HXOXL%U LOHLÄ&DURO,´
7kUJX-LX%U LOD



 6HOHFWLYH/LVWRI3XEOLFDWLRQV

'73(YGRFKLD6PD]QRY

'HVFULHUHD&,3D%LEOLRWHFLL1D LRQDOHD5RPkQLHL
'LJJLQJLQWKH3DVWRI2OG(XURSH6WXGLHVLQ+RQRURI&ULVWLDQ6FKXVWHU
DWKLVWK$QQLYHUVDU\HG9DOHULX6vUEX$OH[DQGUD&RP DDQG
'XPLWUX+RUWRSDQ%U LOD(GLWXUD,VWURVD0X]HXOXL%U LOHLÄ&DURO,´

&RQ LQHELEOLRJUDILH
,6%1
,6vUEX9DOHULXHG
,,&RP D$OH[DQGUDHG
,,,+RUWRSDQ'XPLWUXHG



 6800$5<

6XPPDU\««««««««««««««««««««««««««««««««««« 
6HOHFWLYH/LVWRI3XEOLFDWLRQV«««««««««««««««««««««««««« 
7DEXOD*UDWXODWRULD«««««««««««««««««««««««««««««« 
9$/(5,86Ì5%8&ULVWLDQ6FKXVWHUODGHDQL 
0$5,1&Æ5&,80$58&ULVWLDQ6FKXVWHUODGHDQL 

678',(6

*$%5,(/ % /$1 (DUO\ ,URQ $JH 6HWWOHPHQW DW *HOPDU *HRDJLX +XQHGRDUD
&RXQW\5RPDQLD 
$',1$ %2521($1  021,&$ 0 5* 5,7 &/,9( %216$// 'LVFRLGDO
%HDGV1RYHO(OHPHQWVRIWKH6WDU HYR(DUO\1HROLWKLF3DFNDJH««««««««« 
-2+1 &+$30$1  %,66(5.$ *$<'$56.$ 7KH 3LOJULPDJH 0RGHO IRU
7U\SLOOLD0HJD6LWHVWKH&DVHRI1HEHOLYND8NUDLQH««««««««««««««« 
2/,9(5 ',(75,&+ &ULVWLDQ XQG )HOGLRDUD =ZHL 6LFKHOKRUWH DXV GHP %XU]HQODQG
5XPlQLHQ«««««««««««««««««««««««««««««««««« 
.$7$5,1$'0,7529, 1HZ6HWRI'RXEOH6KDQN3LQVIURP D DN«««««« 
$/,1 )5Ì1&8/($6$ '$1,(/ *$59 1 %,$1&$ 35('$% / 1,& 
&XUYHG 6WRQH .QLYHV RI WKH .UXPPHVVHU 7\SH 5HFHQWO\ 'LVFRYHUHG LQ 1RUWKHUQ
0XQWHQLD««««««««««««««««««««««««««««««««««« 
*(25*(7$ (/ 686, $QLPDO %UHHGLQJ DQG +XQWLQJ LQ &HOWLF 6LWHV IURP
7UDQV\OYDQLDDQG%DQDW«««««««««««««««««««««««««««« 
0$57,1 *(25*,(9 +5,6729 1HZ 7HL &XOWXUH 0DWHULDOV IURP &HQWUDO 1RUWK
%XOJDULD««««««««««««««««««««««««««««««««««« 
/<8%29*(5$6.29$,213Æ6/$58Ä'HODJUHFLODJUHFL´SH'UXPXO0 W VLL
$UWDW LHULLSLHWUHLODQRPD]LLWXUFL 
.5$66,0,5/(6+7$.296RPH/%$3\UDXQRLDQG9HVVHOVZLWK,QWHUQDO/XJVIURP
WKH(DVWHUQ%XOJDULD«««««««««««««««««««««««« 
0$5,-$ /-8â7,1$ 0$5,-$ .5( .29,  7(2'$5$ 5$',â,  1RWHV RQ
&ROXPEHOOD6KHOOVIURPWKH%URQ]H$JH1HFURSROLV0RNULQ1RUWKHUQ6HUELD«««« 
9$1<$/2=$129$67$17&+(9$:ROYHVLQ'UHDPV«7R(XULSLGHV+HFXED
«««««««««««««««««««««««««««««««« 
021,&$ 0 5* 5,7 5$'8 % -(1$58 2VVHRXV ,QGXVWU\ LQ WKH %URQ]H $JH
6HWWOHPHQWRI2GDLD7XUFXOXL'kPERYL D&RXQW\5RPDQLD«««««««««««« 


 6XPPDU\

/$85(1 ,80(&8$SURSRVGHO¶DUFKpRORJLHDXF°XUG
$IULTXH 
0$5&20(5/,1,7KH6RXQGRI5RFN$UW&DQDU\/LWKRSKRQHV««««««««« 
%,$1.$1(66(/&/$(68+1e57UDQVSRUWDWLRQLQ%URQ]H$JH(XURSH«««« 
/2/,7$ 1,.2/29$ 3LW *UDYH &XOWXUH LQ WKH 'DQXEH %DVLQ ,PPLJUDQWV RU
,QYDGHUV"&XOWXUDO(YROXWLRQDQG/DQJXDJH'LYHUVLW\«««««««««««««« 
/25('$1$ 1,  0,5&($ $1*+(/,18 &5,67,1$ &25'2  $OPRVW )XOO\
(XURSHDQ WKH *UDYHWWLDQ 6KRXOGHUHG 3RLQWV /D\HU IURP %LVWULFLRDUD/XW ULH ,,,
&HDKO X%DVLQ1(5RPDQLD««««««««««««««««««««««««« 
625,1 3$/,*$ 7KH 'HILQLWH $UWLFOH DV D 5HIHUHQFH 3RLQW LQ 'HILQLQJ WKH %DONDQ
6SUDFKEXQG«««««««««««««««««««««««««««««« 
$1&$',$1$ 323(6&8 5$'8 % -(1$58 $ +RDUG RI &XUYHG 6WRQH .QLYHV
IURP&RVWL D5RPDQLD 

.$/,1 3252=+$129 7KH 7KUDFLDQ &KHUVRQHVRV LQ WKH 2GU\VLDQ %DVLOHLD RI
.RW\V,±%&«««««««««««««««««««««««« 
%,$1&$ 35('$% / 1,&  $/,1 )5Ì1&8/($6$ '$1,(/ *$59 1
%2*'$1 &2167$17,1(6&8 '$1,(/$ 67$1 8QIRUWXLWRXV $FFLGHQWV ±
3UHKLVWRULF0HWDO$UWHIDFWV5HFHQWO\'HWHFWHGLQ1RUWKHUQ0XQWHQLD3UDKRYD&RXQW\
5RPDQLD 
,8/,$ 5 %Ì1&  6$%,1 32329,&, )/25,1 *52)8 / ÆJH GX %URQ]H HQ
2OWpQLHeWXGHGHFDVXQH&ROOHFWLRQG REMHWVHQ7HUUH&XLWHGX0XVpH5RPDQD LGH
&DUDFDO5RXPDQLH«««««««««««««««««««««««««««« 
$85(/ 58672,8 6F\WKR&HOWLFD $ 9HNHU]XJ6W\OH 6WDPSHG 'HFRUDWLRQ RQ D /D
7qQH&HUDPLF9HVVHOIURP0DOp.RVLK\««««««««««««««««««««« 
9$/(5,86Ì5%86F\WKLDQ&DXOGURQVDQGWKH0HDQLQJRIWKHLU3UHVHQFH««««« 
'21( (5% 1(6&8 $/(;$1'5$ &20 $ 7ZR )XQHUDU\ &RPSOH[HV RI WKH
'XGH WL &XOWXUH 'LVFRYHUHG DW & VFLRDUHOH)kQWkQD OXL %UHEX & O UD L &RXQW\
5RPDQLD 
&5,67,$1 ('8$5' 7()$1 6FXUW  QRW  DVXSUD XQRU FRPSOH[H GH WLS %DVDUDEL
GHOD RLPX /D$YLFROD)HUPDMXG+XQHGRDUD5RPkQLD««««« 
,21 78 8/(6&8 &$52/&5,67,$1 7(57(&, 6RPH &RQWULEXWLRQV 5HJDUGLQJ
WKH &XOWXUDO (YROXWLRQ LQ WKH 0RXQWDLQRXV DQG +LOO\ $UHD RI 2OWHQLD 5RPDQLD
'XULQJWKH)LQDO(QHROLWKLF,QFLSLHQW(DUO\%URQ]H$JH3HULRG««««««««« 
&$0(/,$0,5(/$ 9,17,/  3$8/(0,/ 0(5(8  3HQGDQWV RI 1HSKULWH LQ
WKH&ROOHFWLRQIURPWKH%XFKDUHVW0XQLFLSDOLW\0XVHXP5RPDQLD«««««««« 
0,&+(/ /28,6 6e)e5,$'e6 1RWH SKLORVRSKLTXH HW VRFLRORJLTXH VXU OD PRUW
QpROLWKLTXHHWpQpROLWKLTXHEDONDQLTXHOLpHDXVKDPDQLVPH««««««««««« 


 ',6&2,'$/%($'6129(/(/(0(176
<1(2/,7+,&3$&.$*(

$',1$%2521($1 %XFKDUHVW5RPDQLD

&/,9(%216$// (GLQEXUJK*UHDW%ULWDLQ

.H\ZRUGV XVHZHDU

$EVWUDFW 'LVFEHDGVVSUHDGZLWKWKHILUVWIDUPLQJFRPPXQLWLHVLQ(XURSH EXWWKH\VHHPWR

EH TXLWH UDUH LQ WKH DUFKDHRORJLFDO UHFRUG SHUKDSV UHODWHG WR H[FDYDWLRQ WHFKQLTXHV DQG
GHWDLOV RI WKHLU FRQWH[WV KDYH UDUHO\ EHHQ SXEOLVKHG 7KH SUHVHQW SDSHU UHYLHZV WKH NQRZQ

SDUWLFXODU DQG WKH (DUO\ 1HROLWKLF LQ JHQHUDO 9DULRXV W\SHV RI UDZ PDWHULDO ZHUH XVHG IRU
PDQXIDFWXULQJ VXFK EHDGV VKHOO ERQH VWRQH DQG FHUDPLF 6HYHQ (DUO\ 1HROLWKLF VLWHV LQ

%XGXLDVFD LQ VRXWKHUQ 5RPDQLD DQG *XUD

 D 6LPLODU ILQGV RFFXUUHG LQ 6HUELD

3LW\HUGRPE )XUWD&ViWy 0RVW OLNHO\ WKLV GRHV QRW

UHIOHFWWKHWUXHDUFKDHRORJLFDOVLWXDWLRQ EXWPHUHO\WKHVWDWHRISXEOLFDWLRQ*LYHQWKHVPDOO
QXPEHURIILQGVLWLVLPSRVVLEOHWRDVVHVVWKHVLJQLILFDQFHRIGLVFEHDGVZLWKLQDFRPPXQLW\
RUZKHWKHUWKH\ZHUHOLQNHGWRDSDUWLFXODUVRFLDODJHRUJHQGHUJURXS7KHLUXVHVHHPVWR
KDYHEHHQFRQQHFWHGZLWKWKHHYHU\GD\OLIHRI(DUO\1HROLWKLFFRPPXQLWLHVLQWKH%DONDQDQG
&DUSDWKLDQUHJLRQVEXWDOVRWRIXQHUDU\SUDFWLFHVLQ&HQWUDO(XURSH4XHVWLRQVVWLOOUHPDLQ
UHJDUGLQJWKHIXQFWLRQRIVRPHRIWKHODUJHUH[DPSOHVRIWKLVW\SHZKLFKKDYHVRPHWLPHVEHHQ
UHJDUGHG DV VSLQGOH ZKRUOV RU SHUIRUDWHG WDEOHWV 2XU YLHZ LV WKDW IXQFWLRQDO DQG XVHZHDU
DQDO\VLV VKRXOG KDYH WKH ODVW ZRUG LQ GHWHUPLQLQJ WKH UROH SOD\HG E\ DQ DUWHIDFW ZLWKLQ D
VSHFLILFFXOWXUDOFRQWH[W

,QWURGXFWLRQ

3HUVRQDO RUQDPHQWV EHDGV SHQGDQWV ULQJV DQG EUDFHOHWV PDGH IURP YDULRXV UDZ
PDWHULDOV VKHOO ERQH WRRWK VWRQH FHUDPLF KDYH EHHQ UHFRYHUHG IURP D UHODWLYHO\ VPDOO
QXPEHURI(DUO\1HROLWKLFVLWHVLQ6RXWKHDVW (XURSH7KLVSDSHUUHYLHZVWKHHYLGHQFHRIWKH
EHDGVIURP(DUO\1HROLWKLF5RPDQLD DQGWKHQHLJKERXULQJDUHDVZLWKRQHVSHFLILFEHDGW\SH
IODW GLVF EHDGV UHSUHVHQWLQJ DQ LQQRYDWLYH IRUP WKDW DSSHDUV WR KDYH VSUHDG WKURXJK
6RXWKHDVWDQG&HQWUDO(XURSHDV SDUWRIWKHµ1HROLWKLFSDFNDJH¶ :HUHYLHZVXFKILQGVIURP
5RPDQLD DQG SODFH WKHP ZLWKLQ WKH EURDGHU UHJLRQDO LQ SDUWLFXODU
DQG(DUO\1HROLWKLFLQJHQHUDOFXOWXUDOSKHQRPHQRQ

7KH (DUO\ 1HROLWKLF LQ 5RPDQLD FD ± FDO %& LV UHSUHVHQWHG E\ WKH
 FXOWXUH ,Q5RPDQLDQDUFKDHRORJ\JHQHUDOO\WKH1HROLWKLFZD\RIOLIHLVVHHQDV
VSUHDGLQJ IURP WKH VRXWK WR WKH QRUWK RI 5RPDQLD PDLQO\ IURP WKH ZHVWHUQ DQG FHQWUDO
'DQXEHDUHDDQG IROORZLQJWKHPDLQULYHUYDOOH\VLQWR 7UDQV\OYDQLDEHJLQQLQJDURXQG 
FDO %& 'XULQJ WKH ODWHU SKDVHV   ±,9 FD ± FDO %& WKH (DUO\
1HROLWKLFFRPPXQLWLHVVSUHDG HDVWDFURVVWKH&DUSDWKLDQV LQWRSUHVHQWGD\0ROGRYD:LWKWKH
H[FHSWLRQ RI WKH DUHD RI WKH ,URQ *DWHV RI WKH 'DQXEH OLWWOH LV NQRZQ RI WKH 0HVROLWKLF
1HROLWKLFWUDQVLWLRQLQ5RPDQLD7KXVWUDFLQJWKHUHJLRQDOSDWWHUQVRIFKDQJH DWWKHERXQGDU\
EHWZHHQWKHVHWZRSHULRGVLVQRWHDV\

,W KDV EHHQ VXJJHVWHG HJ /HQQHLV  5LJDXG  S  WKDW 1HROLWKLF
RUQDPHQWDO SUDFWLFHV ZHUH JHQHUDOO\ EXLOW RQ D 0HVROLWKLF VXEVWUDWH 3HUVRQDO RUQDPHQWV
HVSHFLDOO\ WKRVH PDGH RI DQLPDO WHHWK DQG ZKROH VKHOOV RI PDULQH PROOXVFV KDYH EHHQ
UHFRYHUHGIURPPDQ\0HVROLWKLFVLWHVDFURVV(XURSH0RVWVXFKLWHPVNQRZQIURP 5RPDQLD
ZHUH IRXQG LQ WKH ,URQ *DWHV UHJLRQ 7KH\ ZHUH PDGH IURP WKH VKHOOV RI VHYHUDO JDVWURSRG
WD[D DQG DW OHDVW RQH VSHFLHV RI GHQWDOLLG VFDSKRSRG VHHQ DV H[DPSOHV RI H[RWLF JRRGV
DFTXLUHGWKURXJK WUDGHRU H[FKDQJHDVZHOODVWKHSKDU\QJHDOWHHWKRIF\SULQLGVWKHWHHWKRI

%HOGLPDQ HWDOLL  HWDOLL D

'LVFEHDGV

:LWK WKH DGYHQW RI WKH 1HROLWKLF D QHZ RUQDPHQW W\SH DSSHDUHG GLVFVKDSHG RU
DQQXODUEHDGV ZKLFKPRUSKRORJLFDOO\DQGWHFKQLFDOO\GLIIHUHGIURPWKRVHRIWKH3DODHROLWKLF
DQG 0HVROLWKLF *XURYD %RQVDOO  7KH\ KDYH EHHQ UHFRYHUHG IURP YDULRXV (DUO\
1HROLWKLF VLWHV DFURVV 6RXWKHDVW (XURSH IURP *UHHFH )UDQFKWKL 1HD 1LNRPHGHLD
0DFHGRQLD
%ODJRWLQ /HSHQVNL 9LU DQG LQWR &HQWUDO (XURSH LQ +XQJDU\ (FVHJIDOYD  *HUPDQ\
$LWHUKRIHQ 6HQJNRIHQ DQG 0DQJROGLQ DQG $XVWULD 6DODGRUI /HQQHLV  *XURYD
%RQVDOO  7KH\ DSSHDU DOVR LQ YLUWXDOO\ DOO SXEOLVKHG 1HROLWKLF DVVHPEODJHV IURP
$QDWROLD DQG WKH 1HDU (DVW %D\VDO  ,Q WKH ,URQ *DWHV UHJLRQ RI WKH 'DQXEH 9DOOH\
VXFK LWHPV KDYH EHHQ IRXQG LQ IXQHUDU\ FRQWH[WV DWWULEXWHG WR WKH µ0HVROLWKLF1HROLWKLF
7UDQVLWLRQDO 3KDVH¶ DQG LQWHUSUHWHG DV UHIOHFWLQJ FRQWDFWV EHWZHHQ ,URQ *DWHV ILVKHUKXQWHU
JDWKHUHUVDQG (DUO\1HROLWKLFFRPPXQLWLHVIXUWKHUVRXWK &ULVWLDQL%RU 

6XFK EHDGV ZHUH GHVFULEHG DV IODW RU DOPRVW FLUFXODU ZLWK D VLQJOH FHQWUDO KROH
SODFHGRQWKHURWDWLRQD[LV RIWKHSLHFH %DUJH0DKLHXHWDOLL  7KH\ DUHHDV\WRPDNH RI
RVVHRXVPDWHULDOVPDLQO\ERQH EXWH[DPSOHVPDGHRI VKHOO PLQHUDOVYDULRXVW\SHVRIURFNV
DQGHYHQFHUDPLF DOVRRFFXU$VH[SHFWHGWKHJHQHUDOGHILQLWLRQVW\SRORJLHVDQGRSHUDWLRQDO
FKDLQVYDU\ZLWKWKHQDWXUHRIWKHUDZPDWHULDORIWKHEHDGVVHHDOVR'LVFXVVLRQ

'LVFEHDGVGRQRWILJXUHSURPLQHQWO\LQWKHDUFKDHRORJLFDOOLWHUDWXUHRQ WKH6RXWKHDVW
(XURSHDQ(DUO\1HROLWKLFHLWKHULQWHUPVRIWKH QXPEHURIVLWHVRUWKHQXPEHURILWHPV SHU
VLWH )LJ7DEOH ,Q5RPDQLD DWOHDVWWKLVVLWXDWLRQLVPRVWOLNHO\DUHIOHFWLRQRIWKHVL]H
DQG ORFDWLRQ RI WKH DUHDV LQYHVWLJDWHG ZLWKLQ VLWHV DQG WKH UHFRYHU\ WHFKQLTXHV HPSOR\HG
,QYDULDEO\VXFKEHDGVDUHNQRZQIURP VLWHVZKHUH VLHYLQJZHWRUGU\ZDV HPSOR\HG &XLQD
7XUFXOXL 6FKHOD &ODGRYHL 0 %XGXLDVFD VLWHV ZKHUH ODUJHU DUHDV ZHUH H[FDYDWHG
  RU ZKHUH WKH UHVROXWLRQ RI WKH UHFRYHU\
WHFKQLTXHV HPSOR\HG ZDV ILQHU WURZHOOLQJ UDWKHU WKDQ VSDGLQJ ± 6FKHOD &ODGRYHL 0 JXUD
$W 'LYRVWLQ PDODFKLWH GLVF EHDGV DQG GHEULV ZHUH FRQFHQWUDWHG PDLQO\ LQ WKH $PHULFDQ
H[FDYDWHG VHFWRUV DQG VHHQ DV D UHIOHFWLRQ RI WKH UHFRYHU\ WHFKQLTXHV HPSOR\HG *OXPDF
)XUWKHUPRUH EHLQJDPRQJWKHVPDOOHVWDQGUDUHVW " RIILQGVPDQ\VXFKLWHPVPD\EH
XQGHUUHSRUWHGLQWKHDUFKDHRORJLFDOOLWHUDWXUH


 'LVFRLGDO%HDGV

7KH5RPDQLDQILQGV

$OLEHJ ZDVDVLWHQRZ VXEPHUJHGLQWKH,URQ*DWHVUHJLRQORFDWHGRQDQDOOXYLDOIODW

DORQJWKHOHIWEDQNRIWKH'DQXEH7KHH[FDYDWLRQVGRFXPHQWHGWKHSUHVHQFH RI (DUO\
1HROLWKLF SRWWHU\ VKHUGV LQ D VDQG\ \HOORZ VRLO GLUHFWO\ RYHUO\LQJ D µ)LQDO¶ 0HVROLWKLF
RFFXSDWLRQDOOD\HU GDWHGE\DUDGLRPHWULFGDWHRQDVLQJOHEXONFKDUFRDOVDPSOH%OQ
“%3 >±FDO%&@  7ZRGLVFEHDGVPDGHRIVWRQH)LJ
ZHUHUHFRYHUHG IURPWKHLQILOORIGZHOOLQJ /ZKLFKZDVDWWULEXWHGE\ WKHH[FDYDWRUWRWKH
)LQDO 0HVROLWKLF FXOWXUDO OD\HU *LYHQ WKH SUHVHQFH DW WKH VLWH RI ERWK )LQDO 0HVROLWKLF DQG
(DUO\ 1HROLWKLF RFFXSDWLRQV WKH UHFRYHU\ RI WKH EHDGV IURP WKH LQILOO RI D SLW DQG WKH ORZ
UHVROXWLRQ RI WKH DVVRFLDWHG UDGLRFDUERQ HYLGHQFH LW LV GLIILFXOW WR DVVLJQ WKHP VHFXUHO\ WR
HLWKHU SHULRG

&ULVWLDQ LVORFDWHGRQWKHIORRGSODLQRIWKH&LELQ5LYHUDWDQDOWLWXGHRIPLQWKH
6LELX'HSUHVVLRQRIWKH0LGGOH&DUSDWKLDQV([FDYDWHGLQWKLV(DUO\1HROLWKLFVLWHZDV
DWWULEXWHG HYR SKDVH EDVHGRQSRWWHU\W\SRORJ\7KHVLWHZDVLQWHUSUHWHGDV D
SLWILHOG¶ FRQVLVWLQJRI ULWXDOSLWVZLWK DVDQFWXDU\ DUHD WKDWDOVRFRQWDLQHGKXPDQEXULDOV
)URPWKHDUHDDURXQGWKHVDQFWXDU\FDPHDFHUDPLFEHDG )LJWKHRQO\ILQGRIDSHUVRQDO
DGRUQPHQWSXEOLVKHGIURPWKHVLWH/XFD

&XLQD 7XUFXOXL DOVR VXEPHUJHG ZDV D URFNVKHOWHU VLWH RQ WKH OHIW EDQN RI WKH
'DQXEH VLWXDWHG LQ WKH QDUURZ FDQ\RQOLNH VHFWLRQ RI WKH ,URQ *DWHV *RUJH NQRZQ DV 7KH
&DXOGURQV ([FDYDWHG LQ ± D FRPSOH[ VWUDWLJUDSKLF VHTXHQFH ZDV GHVFULEHG LQ ZKLFK
WKUHH (SLSDOHROLWKLF KRUL]RQV ,±,,,ZHUH 
FXOWXUH OHYHOV LQ WXUQ RYHUODLQ E\ GHSRVLWV EHORQJLQJ WR PRUH UHFHQW SHULRGV 7KH
(SLSDOHROLWKLF KRUL]RQ , ZDV GDWHG E\ WKUHH UDGLRPHWULF & PHDVXUHPHQWV RQ SLQH FKDUFRDO
UDQJLQJEHWZHHQ“DQG“%3ZKLOHDUDGLRPHWULFGDWHRI“%3
ZDV REWDLQHG RQ D PL[HG VDPSOH RI FKDUFRDO DQG EXUQW ERQH IUDJPHQWV IURP (SLSDOHROLWKLF
KRUL]RQ ,, 6LQJOHHQWLW\ $06 & GDWHV RQ WHUUHVWULDO DQLPDO ERQHV SODFH
WKH (DUO\1HROLWKLFRFFXSDWLRQ RIWKHVLWHEHWZHHQFD ±FDO%&


'LVF EHDGV PDGH RI ERQH WRRWK DQG VWRQH )LJ  ZHUH UHSRUWHG IURP &XLQD
7XUFXOXL RULJLQDWLQJIURPDOO WKUHH(DUO\1HROLWKLFKRUL]RQVWKHIRXUERQHLWHPVFDPHIURP
SKDVH S)LJ
 7KHWRWDO
QXPEHURIEHDGVLVXQFOHDU% PHQWLRQHG VHYHUDOERQHEHDGVVRPH³SDLQWHGLQGDUN
UHG´%RURQHDQ SDQGLOOXVWUDWHGIRXUERQHEHDGV%RURQHDQ S)LJ
 GHVFULEHG³IRXUVPDOOEHDGVPDGHRIERQHDQGWHHWK´DQG³WKUHH
FLUFXODU EHDGV RI ZKLWLVK OLPHVWRQH´ VHYHQ LQ WRWDO DQG LOOXVWUDWHG ILYH RI WKHP RQH
SKRWRJUDSK S  ILJV    EXW GLG
QRW VSHFLI\ WKH UDZ PDWHULDOV ,Q WKH FROOHFWLRQ RI WKH µ9DVLOH 3kUYDQ¶ ,QVWLWXWH RI
$UFKDHRORJ\WZR ERQHGLVFEHDGVKDYHVXUYLYHGEXWQRQHRIWKHVWRQHEHDGV

*XUD %DFLXOXL LV DQ RSHQ DLU 3ODWHDX RI FHQWUDO 7UDQV\OYDQLD
ORFDWHGRQDWHUUDFHDWRYHUPDOWLWXGH7KHRFFXSDWLRQDOVHTXHQFHRIWKHVLWHFRPSULVHV
DQ (DUO\ 1HROLWKLF OD\HU DQG %URQ]H $JH RFFXSDWLRQ HSLVRGHV SDUWLDOO\ GHVWUR\HG E\ ODWHU
LQWHUYHQWLRQV 7KHSRWWHU\EDVHGFKURQRORJ\VXJJHVWVKXPDQSUHVHQFHDWWKH VLWHDVHDUO\DV
 FDO %& FRUUHVSRQGLQJ URXJKO\ HYR&ULV ,% SKDVH DQG FRQWLQXLQJ LQWR
 ± FDO%&7KHDYDLODEOH&GDWHVVXJJHVWWKH(DUO\1HROLWKLF


RFFXSDWLRQODVWHGIURP FD±FDO%&$PRQJWKHSHUVRQDODGRUQPHQWVUHSRUWHGDUH
EUDFHOHWV ULQJV EHDGV QRQH RI WKHP RI WKH GLVFRLG W\SH DQG SHQGDQWV /D]DURYLFL 0D[LP
S$OWKRXJKQRWPHQWLRQHGLQWKHWH[WD SRVVLEOHFHUDPLFGLVF EHDGGHVFULEHG DVD
VSLQGOHZKRUO LVLOOXVWUDWHG )LJ 

%XGXLDVFD LVDQRSHQDLUVLWHORFDWHGRQDQDOOXYLDOWHUUDFHRI WKH7HOHRUPDQ

9DOOH\LQVRXWKHUQ5RPDQLDNPXSVWUHDPIURPWKHFRQIOXHQFHRIWKH7HOHRUPDQZLWKWKH
5LYHU'DQXEH7KHVWUDWLJUDSKLFVHTXHQFHRIWKHVLWHFRPSULVHVVHYHUDO1HROLWKLFRFFXSDWLRQV
RYHUODLQ LQ VRPH DUHDV E\ UHPDLQV RI ODWHU VHWWOHPHQWV %URQ]H $JH ,URQ $JH 0LJUDWLRQ
3HULRG DQG 0LGGOH $JH $UFKDHRORJLFDO H[FDYDWLRQV FRQILUPHG WKH IROORZLQJ 1HROLWKLF
VHTXHQFH 
DQRYHUDOOWLPHVSDQ EHWZHHQFDDQG
FDO %& ZLWK WKH (DUO\ 1HROLWKLF RFFXSDWLRQ GDWLQJ EHWZHHQ  DQG  FDO %& 'U\
VLHYLQJ  PP PHVK ZDV HPSOR\HG DW WKH VLWH 7KH GLVF EHDGV UHFRYHUHG )LJV  
 ZHUH PDGH RI VKHOO $QGUHHVFX  ERQH %HOGLPDQ 6]WDQFV  FOD\ 0LUHD
SO DQGVWRQH0LUHDSOV 

6FKHOD &ODGRYHL LV D ODUJH RSHQDLU VLWH RQ WKH OHIW EDQN RI WKH 'DQXEH LQ WKH DUHD
GRZQULYHUIURPWKH,URQ*DWHV*RUJHDQGFDNPEHORZWKH,URQ*DWHV, 
%RQVDOO([FDYDWLRQVLQ±±±DQG±KDYHXQFRYHUHG
UHPDLQVRI/DWH0HVROLWKLF(DUO\1HROLWKLFDQGODWHURFFXSDWLRQV3XEOLVKHGGDWHVIRURI
WKHEXULDOVDOOIDOOLQWKH/DWH0HVROLWKLFSHULRGEHWZHHQ FDDQGFDO%& ZKLOH &
GDWHV RQ DQLPDO UHPDLQV SODFH WKH (DUO\ 1HROLWKLF EHWZHHQ  DQG  FDO %& %RQVDOO


$ IHZ ERQH EHDGV ZHUH UHFRYHUHG DW 6FKHOD &ODGRYHL GXULQJ WKH V H[FDYDWLRQV
7KH\ FDPH IURP WKH µ1HROLWKLF FXOWXUDO OD\HUV¶ DQG ZHUH QRW DVVRFLDWHG ZLWK DQ\ FOHDUO\
GHILQHG +RZHYHUWKHVHLWHPVFRXOGQRW
EH IRXQG DPRQJ WKH VXUYLYLQJ FROOHFWLRQV IURP WKH V H[FDYDWLRQV 'XULQJ WKH UHFHQW
RQJRLQJ H[FDYDWLRQV DW6FKHOD&ODGRYHLWKURXJKRXWZKLFKZHWVLHYLQJXVLQJDPP
PHVK VL]H KDV EHHQ HPSOR\HG D VXEVWDQWLDO QXPEHU RI PDLQO\ JUHHQVWRQH EHDGV )LJ 
ZHUH UHFRYHUHG ERWK IURP (DUO\ 1HROLWKLF FRQWH[WV DQG WKH LQWHUYHQLQJ µFXOWXUDO OD\HU¶
%RQVDOOHWDOLL  HWDOLL 

± LVVLWXDWHGRQ LYHUH[WHQGLQJRYHUWZR
DOOXYLDO WHUUDFHV ([FDYDWLRQV WRRN SODFH LQ  DQG XQFRYHUHG D VXEVWDQWLDO QXPEHU RI
DUFKDHRORJLFDOIHDWXUHVGDWLQJ IURPWKH(DUO\1HROLWKLF  ,9 WRWKHILUVW ,URQ
$JH   $ FHUDPLF EHDG )LJ ZDV IRXQG LQ WKH LQILOO RI D VHPL
VXEWHUUDQHDQ  ,,,GZHOOLQJ

5DZPDWHULDOVDQGPDQXIDFWXUHRIWKH GLVFEHDGV

6KHOO
:LWKLQ HYR FXOWXUH DUHD GLVF EHDGV PDGH RI VKHOO KDYH EHHQ UHSRUWHG RQO\
IURP 'UHQRYDF DQG %ODJRWLQ %XGXLDVFD LQ 5RPDQLD )LJ
 %XGXLDVFD \LHOGHGMXVWRQHLWHPSHUVLWH7KHVSHFLHV
RIVKHOOXVHGFRXOGQRW EHLGHQWLILHG GXHWRWKH VPDOOVL]HRIWKHDUWHIDFWVMXGJLQJIURPWKH
SXEOLVKHGLOOXVWUDWLRQVWKH'UHQRYDFEHDGLV FD  PP %XGXLDVFD
EHDG FD FP WKH GLDPHWHU RI WKH SHUIRUDWLRQ LV VLPLODU WKH
PDQXIDFWXULQJ WHFKQLTXH KDV EHHQ GHVFULEHG DV IROORZV Ä>«@ ILUVW D EODQN ZDV FUHDWHG E\


 'LVFRLGDO%HDGV

EUHDNLQJ FXWWLQJ RU FKRSSLQJ ZLWK VWRQH DQG IOLQW WRROV DQG IXUWKHU VKDSHG E\ FXWWLQJ DQG
VFUDSLQJZLWKUHWRXFKHGDQGXQUHWRXFKHGIOLQWVFUDSHUVDQGEXULQV´ 9L 
7KHUH ZHUH DOVR ÄDGGLWLRQDO >ILQLVKLQJ@ VWDJHV´ LQYROYLQJ EXUQLVKLQJ DQG SROLVKLQJ XVLQJ
YDULRXVDEUDVLYHWRROV
)URP DSSUR[LPDWHO\ WKH VDPH WLPH SHULRG WKH (DUO\ 1HROLWKLF QHFNODFHV IURP
*DODEQLN %XOJDULD LQFOXGHG GLVF EHDGV PDGH RI VKHOO OLPHVWRQH QHSKULWH DQG VHUSHQWLQLWH
7KHGLDPHWHURIWKHEHDGVZDVFDPPDJDLQLQIHUUHGIURPWKHSXEOLVKHGLOOXVWUDWLRQZLWK
SHUIRUDWLRQVFRQVLVWHQWO\RIPP*XURYD%RQVDOOSILJ

%RQH
0DQ\ FXOWXUH SHUVRQDO DGRUQPHQWV ZHUH PDGH RI ERQH 7KH\ FRPSULVH
SHQGDQWV ULQJV EUDFHOHWV DQG EHDGV RI YDULRXV IRUPV +RZHYHU DV QRWHG DERYH ERQH GLVF
EHDGVZHUHQRWDFRPPRQILQG

2I WKH IRXU EHDGV IURP &XLQD 7XUFXOXL SXEOLVKHG DQG LOOXVWUDWHG E\ %RURQHDQ )LJ
 RQO\WZRERQHEHDGV KDYH VXUYLYHGLQWKHVLWHDUFKLYH

2QH EHDG I LQ )LJ  ZDV PDGH RQ D IODW EODQN  EXW RZLQJ WR WKH VHYHUHO\
DEUDGHGH[WHULRUVXUIDFHV UHVXOWLQJIURPLWV VKDSLQJ)LJWKHVHTXHQFHDQGSUHFLVHQDWXUH
RIWKHGHELWDJH SURFHGXUHVLVQRORQJHUGLVFHUQLEOH7KHSHUIRUDWLRQZDVPDGHLQWKHFHQWUHRI
WKH EHDG XVLQJ ELIDFLDO URWDWLRQ )LJ  EHDG GLDPHWHU ±  PP EHDG WKLFNQHVV ±  PP
SHUIRUDWLRQ GLDPHWHU ± PP

7KH VHFRQG EHDG D LQ )LJ  KDV GLPHQVLRQV ±  [  PP WKLFNQHVV ±  PP
SHUIRUDWLRQ ±  [  PP DQG ZDV QHYHU LOOXVWUDWHG LQ SXEOLFDWLRQ ,W ZDV PDGH RQ D
YROXPHEODQN )LJEHDGFZLWKWKHPHGXOODU\FKDQQHOXVHGDVWKHSHUIRUDWLRQ7KXVLW
KDV DQ RYDO VKDSH UHODWHG WR WKH PRUSKRORJ\ RI WKH ERQH IURP ZKLFK LW ZDV PDQXIDFWXUHG
6HJPHQWDWLRQ E\ VDZLQJ ZDV HPSOR\HG IRU WKH H[WUDFWLRQ RI WKH EODQN IURP WKH PDLQ ERQH
)LJZLWKRXW DEUDVLRQRIWKHVHJPHQWDWLRQVXUIDFHV

,Q )LJ;WZRRWKHUEHDGVDSSHDUWRKDYHEHHQPDGHRIERQHD

DQG F DQG WZR RI VWRQH E DQG G 7KH VOLJKWO\ RYDO VKDSH RI EHDG D DQG WKH VOLJKWO\
LPSHUIHFW FLUFXODUVKDSHRIWKHSHUIRUDWLRQVXJJHVWLWKDGEHHQPDGHRQDYROXPHEODQNVLPLODU
WREHDGF

)URP FDUHIXO H[DPLQDWLRQ RI HQODUJHG FRSLHV RI WKH H[LVWLQJ EHDG SKRWRV DQG
GUDZLQJV ZHVXJJHVWWKDW DWOHDVW VHYHQEHDGVZHUHIRXQGDW &XLQD7XUFXOXL OHWWHUVD WRJ LQ
)LJ +RZHYHUWKLVPHDQV WKDWR EHDGV IURP ZDV PDGHRIVWRQH
EHDGE:HKDYHPDGHWKLVVXJJHVWLRQEDVHGRQLWVLGHQWLILFDWLRQLQWKHSKRWRJUDSK LQ)LJ
;7KXVEHDGVDF DQGIZHUHPDGHRIERQHE DQGGZHUHPDGHRIVWRQH DQGEHDGVH DQG
J ZHUHPDGHRIHLWKHUVWRQHRUERQH7KHEHDGVERQHDQGVWRQHDUHRIGLIIHUHQWVL]HVDQGWKH
SHUIRUDWLRQV KDYH GLIIHUHQW GLDPHWHUV 2QH RI WKH ERQH EHDGV ZDV PDGH RQ D IODW EODQN DQG
WZRRQYROXPHEODQNV


3HUVRQDO RUQDPHQWV ZHUH PLFURVFRSLFDOO\ H[DPLQHG XVLQJ D .H\HQFH 9+; GLJLWDO PLFURVFRSH ZLWK
PDJQLILFDWLRQVUDQJLQJIURP WR;WKHLPDJHVEHLQJWDNHQXVLQJDQLQWHJUDOFDPHUD

:H FRPSDUHG WKH VKDSHV VL]HV DQG FKDUDFWHULVWLFV RI WKH EHDGV LOOXVWUDWHG DQG WKRVH LPDJHV WKRXJKW WR
UHSUHVHQW WKH VDPH LWHP ZHUH UHGXFHG WR WKH VDPH VFDOH DQG WKH GLDPHWHUV RI WKH EHDGV DQG SHUIRUDWLRQV
FRPSDUHG


 $ VLPLODU WHFKQLTXH IRU SURGXFLQJ EHDGV RQ YROXPH EODQNV
+|\N LQQRUWKZHVW$QDWROLDZKHUH SLHFHVRIVPDOOPDPPDOERQHVHSDUDWHGXVLQJDJURRYH
DQGVQDSWHFKQLTXHZHUHXVHG IRUPDQXIDFWXULQJVRPHRIWKHGLVFEHDGV %D\VDOS
7DEOH

$WOHDVWRQHERQHEHDGZDVIRXQGDW %XGXLDVFD )LJ;EGLDPHWHUFD

FPSHUIRUDWLRQGLDPHWHUFDPP ± GLPHQVLRQVFDOFXODWHGIURPWKHSXEOLVKHGLOOXVWUDWLRQLQ
$QGUHHVFX  7KH SHUIRUDWLRQ DSSHDUV WR KDYH EHHQ GRQH ELIDFLDOO\ 6HYHUDO RWKHU
SHUIRUDWHG LWHPV )LJ ;D RI ODUJHU VL]HV PLJKW KDYH VHUYHG DV EHDGV DOWKRXJK WKH\ KDYH
EHHQGHVFULEHGDV ULQJV¶$QGUHHVFX %HOGLPDQ

(OVHZKHUH LQ FXOWXUH DUHD D ERQH EHDG ZDV IRXQG DW 'RQMD %UDQMHYLQD
7UEXKRYLF .DUPDQVNL  SO ;9, LQ WKH µFXOWXUDO OD\HU¶ LQ WUHQFK 6;, %DVHG RQ WKH
SXEOLVKHG LOOXVWUDWLRQ LW LV FORVHU LQ VL]H WR ZKDW KDYH EHHQ GHVFULEHG DV ERQH ULQJV WKDQ WR
GLVF EHDGVSURSHU

%HDGVPDGHIURPVWRQH DQGPLQHUDOPDWHULDOV
:KHQ XVLQJ VWRQH WZR FRORXUV LQ SDUWLFXODU VHHP WR KDYH DWWUDFWHG WKH DWWHQWLRQ RI
(DUO\1HROLWKLFSHRSOHJUHHQDQGZKLWH:KLWHVWRQHVKDYHEHHQVHHQDVUHSOLFDWLQJWKHOXVWUH
DQGFRORXURIVKHOO  ZKLOHJUHHQEHDGVKDYHEHHQ OLQNHGWR WKHDSSHDUDQFHRI
SODQWFXOWLYDWLRQ ³7KHHDUOLHVWFXOWLYDWRUVDWWKHHQGRIWKH1DWXILDQDQGWKH331$IDUPHUV
PDGHJUHDWHIIRUWVDWREWDLQLQJJUHHQPLQHUDOVIRUWKHSURGXFWLRQRIEHDGVDQGSHQGDQWVDQG
LQWKH331%WKLVWUHQGH[SDQGV´ %DU<RVHI0D\HU3RUDW

:KLWLVK VWRQHV
,QWKH,URQ*DWHVUHJLRQWZRZKLWLVKJUH\GLVF EHDGVZHUHGLVFRYHUHGDW$OLEHJ)LJ
 DQG WKUHH ZKLWH EHDGV VHH DERYH ZHUH PHQWLRQHG IURP WKH VLWH DW &XLQD 7XUFXOXL

$W $OLEHJ WKH HGJH )LJ  DQG ERWK IDFHV )LJ  RI WKH EHDGV ZHUH
UHJXODUL]HGE\DEUDVLRQ7KHSHUIRUDWLRQ)LJZDVPDGHE\ELIDFLDOURWDWLRQ 7KHVL]HV
RI WKH EHDGV ZHUH GLDPHWHU ±  PP WKLFNQHVV ±  PP SHUIRUDWLRQ GLDPHWHU ± 
PP DQG GLDPHWHU ±  PP WKLFNQHVV ±  PP SHUIRUDWLRQ GLDPHWHU ±  PP
UHVSHFWLYHO\

/LWWOHLQIRUPDWLRQLVDYDLODEOHRQWKHPDQXIDFWXULQJWHFKQLTXHRI WKHWKUHHZKLWHVWRQH
GLVF EHDGVDVVRFLDWHGZLWKWKH(DUO\1HROLWKLFRFFXSDWLRQ)LJ  DW 'LYRVWLQ7ZREHDGVD
DQG E ZHUH PDGH RI ZKLWH OLPHVWRQH )LJ  RQH RI ZKLFK EHDG E KDG D ELIDFLDO
SHUIRUDWLRQWKHWKLUGEHDGZDVPDGH RI ZKLWHVWRQH )LJEHDGF,QWKHFDVHRI WKHODVW
PHQWLRQHG JULQGLQJ IDFHWV RQ WKH RXWHU SHULSKHU\ ZHUH WDNHQ WR LQGLFDWH WKDW WKH LWHP ZDV
XQILQLVKHGWKHSHUIRUDWLRQZDVSHUIHFWO\URXQG7KHEHDGVZHUHUHFRYHUHGIURPSLWVEHDGVD
DQGFDQGDKXWEHDGE0F3KHUURQHWDOLL  $IUDJPHQWHGEHDGOLNHDUWHIDFWPDGHRID
ZKLWH VWRQH ZDV UHFRYHUHG IURP 'RQMD %UDQMHYLQD DQG ODEHOOHG DV D µVSLQGOH ZKRUO"¶
.DUPDQVNL  VOLND  QR VFDOH 7KH DUWHIDFW ZDV IRXQG VSOLW LQ WZR DFURVV WKH
SHUIRUDWLRQ

7ZR EHDGV PDGH RI D ILQH SDOHFRORXUHG VWRQH ZHUH UHFRYHUHG IURP (FVHJIiOYD
+XQJDU\ 6WDUQLQL HW DOLL  7KH\ ZHUH  PP LQ GLDPHWHU  PP WKLFN ZLWK D
SHUIRUDWLRQRIFD PP )LJ7KH\ZHUHIRXQGLQ FRQWH[WV SLWIHDWXUHV DQG


 'LVFRLGDO%HDGV

*UHHQVWRQH
)UDJPHQWV RI PDODFKLWH RQH IURP HDFK VLWH ± SRVVLEO\ FRUURGHG EHDGV RU GHELWDJH
IURP EHDG PDNLQJ ± ZHUH IRXQG DW WKH HYR VLWHV RI 2EUH , DQG =PDMRYDF *LPEXWDV
*OXPDF
'HILQLWH H[DPSOHV RI PDODFKLWH EHDGV LQ YDULRXV VWDJHV RI PDQXIDFWXUH KDYH EHHQ
UHSRUWHGIURPDVPDOO QXPEHURIVLWHV $W 'LYRVWLQ IRXUSUHIRUPVZLWKRXWSHUIRUDWLRQVZHUH
FXOWXUH FRQWH[WV ZKLOH DQRWKHU IRXU EHDGV KDG XQFHUWDLQ
 RU  FRQWH[WV *OXPDF  2Q RQH RI WKH SUHIRUPV WKHUH ZHUH YLVLEOH
JULQGLQJ IDFHWV SRVVLEO\ GHVWUR\HG E\ FRUURVLRQ RQ WKH UHPDLQLQJ WKUHH LWHPV *UHHQ VWRQH
GLVFEHDGVZHUHDOVRIRXQG LQWKH OD\HUVDW9ODVDF %RUL HWDOLL S DQG$ULD
%DEL %RUL  S  LQ WKH ,URQ *DWHV *RUJH  S  DOVR PHQWLRQV DQ
XQSXEOLVKHGILQGRI³DEHDGPDGHIURPDYHU\VLPLODUGDUNJUHHQWREODFNVWRQHIURPVHFWRU
,,,RI3DGLQD´DOWKRXJKWKHIRUPRIWKHEHDGDQGLWVFKURQRORJLFDOFRQWH[WDUHQRWGHVFULEHG

%XGXLDVFD LQ VRXWKHUQ 5RPDQLD WKHUH LV DW OHDVW RQH VWRQH GLVF EHDG
PDGHIURPDJUHHQURFN RUPLQHUDO )LJ ZLWKDGLDPHWHURIFDPPDQGDSHUIRUDWLRQ
RI FD  PP PHDVXUHPHQWV HVWLPDWHG IURP WKH LOOXVWUDWLRQ LQ 0LUHD  SO  7KH
SUHVHQFHRIPDODFKLWHEHDGVDQGPDODFKLWH IUDJPHQWVVLPLODUWRWKRVHIURP 6FKHOD&ODGRYHL
EHORZ PLJKWLQGLFDWHDORFDOEHDGPDNLQJZRUNVKRS1R PLFURGULOOVWKDWFRXOGKDYHEHHQ
HPSOR\HGIRUSHUIRUDWLQJ WKHEHDGVZHUHSXEOLVKHGIURPHLWKHU'LYRVWLQRU0 JXUD

$W6FKHOD&ODGRYHLGXULQJWKHRQJRLQJH[FDYDWLRQVLQ$UHD9,,FRPSOHWHPDODFKLWH
DQG JUHHQ VFKLVW GLVF EHDGV )LJ  ZHUH UHWULHYHG LQ VLJQLILFDQW QXPEHUV RYHU 
WRJHWKHU ZLWK D VXEVWDQWLDO TXDQWLW\ RI GHELWDJH UHVXOWLQJ IURP WKH PDQXIDFWXULQJ SURFHVV ±
FRPSULVLQJ VPDOO IUDJPHQWV RI UDZ PDWHULDO SUHIRUPV ZLWK DQG ZLWKRXW SHUIRUDWLRQ DQG
EURNHQ EHDGV ± DQG ZLWK PLFURGULOOV PDGH RI µ%DONDQ IOLQW¶ 7KH GLVF EHDGV DUH LQYDULDEO\
OHVVWKDQFPLQGLDPHWHUZLWKDELIDFLDOSHUIRUDWLRQ7KH\ZHUHIRXQGPDLQO\LQSLW IHDWXUHV
EXWDOVRLQWKH(DUO\1HROLWKLFµFXOWXUDOOD\HU¶EHWZHHQWKHSLWV %RQVDOOHWDOLL 

6WRQH EHDGV RI XQVSHFLILHG FRORXU ZHUH DOVR UHSRUWHG DW %ODJRWLQ 6HUELD *XURYD
%RQVDOO

&HUDPLF EHDGV
)RXU VLWHV LQ 5RPDQLD KDYH SURGXFHG FHUDPLF EHDGV RQH LQ VRXWKHUQ 5RPDQLD
 %XGXLDVFD DQG WKUHH LQ 7UDQV\OYDQLD &ULVWLDQ *XUD %DFLXOXL DQG 7 
 HDFK VLWH \LHOGLQJ RQH FHUDPLF EHDG )LJ  7KDW WKHUH DUH VR IHZ UHSRUWHG
RFFXUUHQFHV RIFHUDPLFEHDGVPD\EH OLQNHGLQSDUW WRWKH GLIILFXOW\ RIPDNLQJWKHGLVWLQFWLRQ
EHWZHHQEHDGVSURSHU DQGVRFDOOHGµVSLQGOHZKRUOV¶SHUIRUDWHGFHUDPLFGLVFVRIYHU\VPDOO
VL]H 

7KHILQGIURP*XUD%DFLXOXL)LJZDVFRQVLGHUHGE\WKHH[FDYDWRUWREHDVPDOO

VSLQGOHZKRUO +RZHYHULWV VPDOOVL]HDQG WKHDSSDUHQWXVHZHDUYLVLEOHLQVLGHWKHSHUIRUDWLRQ
ERWKREVHUYDEOHLQ WKHSXEOLVKHGGUDZLQJ/D]DURYLFL0D[LPILJ PDNHLWDJRRG
FDQGLGDWHIRUDFHUDPLFEHDG

%XGXLDVFD EHDG PHDVXUHPHQWV ZHUH HVWLPDWHG IURP WKH SXEOLVKHG

SKRWRJUDSK LQ 0LUHD SO LV FD  FP LQ GLDPHWHU ZLWK D SHUIRUDWLRQ RI FD 
PPDQGDWKLFNQHVVRIPP)LJ7KH&ULVWLDQEHDG)LJ KDVDVLPLODUVKDSHEXW

7R WKH DXWKRUV¶ NQRZOHGJH WKHUH LV QR HYLGHQFH WKDW VXFK LWHPV ZHUH XVHG DV VSLQGOH ZKRUOV 6HH DOVR
0F3KHUURQHWDOLL 


DGLDPHWHURIFDFPDODUJHUKROHFDPP DQGDWKLFNQHVVRIFD PP3XEOLVKHG
SKRWRJUDSKVRIWKHODVWWZRDUWHIDFWVLQGLFDWHWKDWWKH\KDGEHHQPRGHOOHGIURPFOD\DQGWKH
SHUIRUDWLRQPDGHEHIRUHILULQJ 7KHDUFKDHRORJLFDOFRQWH[WVRIWKHVH WKUHHEHDGVDUHFXUUHQWO\
XQSXEOLVKHG
8QOLNH WKHEHDGV GHVFULEHGDERYHWKHLWHP

 ZDV PDGH IURP D ERG\ VKHUG RI ILQHVHPLILQH SRWWHU\ ZLWK D
WKLFNQHVVRI±PP7KHGLDPHWHURIWKHµEHDG¶YDULHGEHWZHHQDQG FP7KH
GLDPHWHURIWKHSHUIRUDWLRQZDVFDFPWKHSHUIRUDWLRQUHSUHVHQWLQJFDRIWKH VXUIDFH
DUHD RI WKH EHDG 7KH LWHP ZDV IRXQG LQ WKH LQILOO RI D VHPLVXQNHQ GZHOOLQJ WRJHWKHU ZLWK
RWKHU W\SHVRIVKHOODQGERQHDGRUQPHQWV

2XWVLGH5RPDQLD FHUDPLFGLVFEHDGVKDYHEHHQIRXQG LQ+XQJDU\DW

Y 3LW\HUGRPE )LJ  %iQII\  DQG (FVHJIDOYD  2URVV :KLWWOH
ILJ7KHVL[LWHPVIURP)XUWD&ViWy)LJDUHPRUHOLNHO\EHDGVWKDQµULQJV¶
0DNND\ ILJ 7KH\ZHUH FPLQ RYHUDOO GLDPHWHUZLWKDSHUIRUDWLRQGLDPHWHURI
FD FPPHDVXUHPHQWVLQIHUUHGIURPWKHVFDOHRQWKHSXEOLVKHGSKRWRJUDSK7\SRORJLFDOO\
KRZHYHU WKH\DUHLGHQWLFDOWRWKHSLHFHVIURP&ULVWLDQDQG*XUD%DFLXOXL DQGZRXOGEHWRR
VPDOODQGEXON\WRZHDURQDILQJHU

0DNND\  ILJ  ZKDW LV

SUREDEO\DILQLVKHGGLVFEHDGDQGWZRXQSHUIRUDWHGSUHIRUPV7KHEHDGDQGRQHSUHIRUPKDG
VRPHLQGHQWDWLRQVRQWKH HGJH7KH LWHPV DUHDOOFDFPRUVOLJKWO\PRUHLQGLDPHWHUDQG
WKHSHUIRUDWLRQLVFD PP

7KH 6]HQWJ\ Y OJ\3LW\HUGRPE EHDGV GHVFULEHG DV µFOD\ SHDUOV¶ )LJ  ZHUH
LGHQWLILHG GXULQJ WKH IORWDWLRQ RI D EXON VRLO VDPSOH VHW DVLGH IRU PDFURERWDQLFDO DQDO\VLV
7KHLU IDEULF PDWFKHV WKDW RI WKH SRWWHU\ DW WKH VLWH ZLWK FKDII DQG VDQG XVHG IRU WHPSHULQJ
7KH\PHDVXUHGUHVSHFWLYHO\  PPDQG PPLQGLDPHWHUZLWKWKHSHUIRUDWLRQRIWKHVPDOOHU
EHDGRQO\PPLQGLDPHWHU,QWKHFDVHRI WKHODWWHU SHUIRUDWLRQ LWZDVREVHUYHG WKDWWKHEHDG
KDGEHHQVWUXQJRQDWKUHDG%iQII\S

'LVFXVVLRQ

7KHUHDUHWKXVDWOHDVW FXOWXUH DUHDZKHUHGLVFEHDGVKDYHEHHQ

IRXQG DOEHLW XVXDOO\ LQ YHU\ VPDOO QXPEHUV 7DEOH  ,Q WHUPV RI WKH EHDG GLPHQVLRQV WKH
ILQGV VHHPKHWHURJHQHRXV 3LW\HUGRPEFHUDPLFEHDGV
DUHFRQVLVWHQWO\ODUJHUWKDQWKHVKHOOERQHDQGVWRQHEHDGVUDQJLQJEHWZHHQDQGFP

7KLVUDLVHVWKHTXHVWLRQRIZKHWKHUDFOHDUGLVWLQFWLRQFDQEHPDGH EHWZHHQGLVF EHDGV

DQG VRPH RI WKH VRFDOOHG ERQH RU VWRQH ULQJV WKDW RFFXU PXFK PR
VLWHV LQFOXGLQJ 'RQMD%UDQMHYLQD.DUPDQVNL.DUPDQVNL 7UEXKRYLF.DUPDQVNL
 DQG 'LYRVWLQ 0F3KHUURQ HW DOLL  'HWDLOHG LQIRUPDWLRQ UHODWLQJ WR WKHLU
PDQXIDFWXULQJ WHFKQLTXH LVVWLOOVFDUFHEXWLWVHHPVWKDWLQPDQ\FDVHV SURGXFWLRQIROORZHG
WKH VDPH WHFKQRORJLFDO VWHSV DV LQ WKH FDVH RI WKH GLVF EHDGV SURSHU VHH GLVFXVVLRQ RI
7HFKQRORJ\ EHORZ ZLWK WKH RQO\ VLJQLILFDQW GLIIHUHQFH EHLQJ WKHLU VL]H ± DQG RIWHQ QR
IXQFWLRQDODQDO\VLVZDVXQGHUWDNHQWRDVVHVVGLIIHUHQFHVLQWKHLUXVH


 'LVFRLGDO%HDGV

%DVHG RQ WKHLU SURSRUWLRQV UDWLR RI SHUIRUDWLRQ GLDPHWHU WR EHDG GLDPHWHU %D\VDO
 LGHQWLILHG WKUHH FDWHJRULHV RI VWRQH EHDG GLVF EHDGV SURSHU DQG WZR YDULDQWV ±
µZDVKHUV¶ DQG µODUJH GLVFV¶ ± ZLWK WKH WZR YDULDQWV EHLQJ HVVHQWLDOO\ WKH W\SRORJLFDO
HTXLYDOHQWVLQVWRQHRIZKDWZRXOGEH GHVFULEHGDVµULQJV¶LQWKHFDVHRIWKHERQHVSHFLPHQV

7KH VDPH DSSOLHV WR FHUDPLF EHDGV PRGHOOHG IURPFOD\ YHUVXV VPDOO VSLQGOH ZKRUOV
DOHQJWKOHVVWKDQ RIWKHGLDPHWHU DQG
HLWKHU VWUDLJKW RU VOLJKWO\ FXUYHG VLGHV %D\VDO  S  7DEOH  DQG VL]H ZDV QRW
FRQVLGHUHG $UJXDEO\KRZHYHUWKHGLVWLQFWLRQEHWZHHQEHDGVDQGVSLQGOH ZKRUOVRXJKWWREH
EDVHGRQWKHH[LVWHQFHRIVSHFLILFXVHZHDUWUDFHV QRWVL]H

$V IRU WKH VPDOO µEHDG¶ IURP 7  SHUIRUDWHG VKHUG VLPLODU

DUWHIDFWV RI ODUJHU VL]H PDQXIDFWXUHG ZLWK D VLPLODU WHFKQLTXH DQG JHQHUDOO\ GHVFULEHG DV
µSHUIRUDWHG FLUFXODU SODWHV¶ RU VRPHWLPHV µVSLQGOH ZKRUOV¶ DUH FRPPRQ RQ (DUO\ 1HROLWKLF
VLWHVLQ6RXWKHDVW(XURSH µ%XGXLDVFD¶ 0LUHD'LYRVWLQ0F3KHUURQHWDOLL
 DQG'RQMD%UDQMHYLQD.DUPDQVNL.DUPDQVNL LQWKH FXOWXUHDUHD
DQGDW(DUO\1HROLWKLF ,OLQGHQWVL%XOJDULD *UHEVND.XORYDHWDOLL  LWHPVRIWKHVDPH
VL]HDVWKDWIURP  HVFULEHGDVµSHUIRUDWHGGLVFV¶7KH\ZHUHPDGHRI
YDULRXV FDWHJRULHV RI SRWWHU\ IUDJPHQWV ILQH DQG VHPLILQH DQG DW ,OLGHQWVL HYHQ D SDLQWHG
VKHUG 7KH SUHVHQFH RI XQSHUIRUDWHG GLVFV DW WKH VDPH VLWHV VKRZV WKDW WKH VDPH
PDQXIDFWXULQJ VWDJHV ZHUH IROORZHG DV LQ WKH FDVH RI WKH µEHDGV¶ Ä(GJHV ZHUH URXJKO\
URXQGHGE\FKLSSLQJDQGJULQGLQJDQGDKROHZDVERUHGLQWKHFHQWUHRIHDFK´7KHUHZDVD
FRQVLVWHQF\LQVL]H>«@7KHVHREMHFWVPLJKWEHWKRXJKWWRKDYHVHUYHGDVVSLQGOHZKRUOVEXW
WKH KROHV VHHP WRR VPDOO IRU D UHDVRQDEOH VSLQGOH VKDIW´ 0F3KHUURQ HW DOLL  S 
$JDLQXVHZHDURQ WKHLQWHULRURIWKHSHUIRUDWLRQPD\KHOSWRGLVWLQJXLVK EHWZHHQLWHPV
XVHGDV EHDGVRUVSLQGOHZKRUOVRUIRUVRPHRWKHUSXUSRVH

7HFKQRORJ\
7KH&XLQD7XUFXOXLVSHFLPHQV LQGLFDWHWKDWERWKIODWDQGYROXPHEODQNVZHUHXVHG IRU
WKHPDQXIDFWXUHRIERQHGLVF EHDGV%HDGVPDGHRQIODWEODQNV ZHUHSUREDEO\PDGHIROORZLQJ
WKHVDPHWHFKQRORJLFDOVFKHPH DVWKRVHPDGHRQVWRQH *XURYD%RQVDOO 
 7DEXODU EORFNV RU µSODWHV¶ RI WKH UHTXLUHG VL]H ZHUH REWDLQHG IURP WKH UDZ
PDWHULDOE\VDZLQJIODNLQJDQGRUVSOLWWLQJDWERWK&XLQD7XUFXOXLDQG$OLEHJWKHUHZHUHQR
SUHIRUPV DOORZLQJ IRU WKH UHFRQVWUXFWLRQ RI WKH WHFKQRORJLFDO SURFHGXUHV XVHG WR REWDLQ WKH
EODQN
 7KHSUHIRUP ZDVUHGXFHGWRWKHUHTXLUHGWKLFNQHVVE\DEUDVLRQRIERWK IDFHV
DW &XLQD 7XUFXOXL WKH VKDSLQJ RSHUDWLRQ FRPSOHWHO\ HUDVHG WKH PDUNV RI WKH GHELWDJH
RSHUDWLRQ
 7KHSUHIRUPZDVJLYHQDFHQWUDOSHUIRUDWLRQSUREDEO\XVLQJDIOLQWPLFURGULOO
IURP RQH RU ERWK IDFHV DW &XLQD 7XUFXOXL DQG $OLEHJ SHUIRUDWLRQ ZDV LQLWLDWHG IURP ERWK
IDFHV DV LQGLFDWHG E\ WKH ELFRQLFDO SURILOH RI WKH SHUIRUDWLRQ DOVR WKH SHUIRUDWLRQV VKRZ
UHJXODULQWHULRUZDOOVVXJJHVWLQJWKHXVHRIDURWDU\GULOO
 7KH ILQDO URXQGLQJ DQG SROLVKLQJ RI WKH EHDGV ZHUH GRQH E\ DEUDVLRQ 7KH
GLIIHUHQW GLDPHWHUV RI WKH WKUHH &XLQD 7XUFXOXL EHDGV VXJJHVW LQGLYLGXDO PDNLQJ DQG
ILQLVKLQJ DOWKRXJK RWKHU EHDGV RI VLPLODU VL]H FRXOG HDVLO\ KDYH EHHQ RYHUORRNHG GXULQJ
H[FDYDWLRQ DQG VR µPDVVSURGXFWLRQ¶ FDQQRW EH UXOHG RXW 7KH ILQDO VKDSLQJ RI D QXPEHU RI
SLHFHV FRXOG KDYH EHHQ SHUIRUPHG VLPXOWDQHRXVO\ LI WKH\ ZHUH WKUHDGHG WRJHWKHU RQWR D
µVSLQGOH¶HJDWKLQVWLFN DQGURWDWHGDJDLQVWDQDEUDVLYHUHVXOWLQJLQEHDGVRIWKHVDPHVL]H
OLNHWKRVHIURP$OLEHJ)LQDOVKDSLQJFRXOGKDYHEHHQDFKLHYHGXVLQJ DILQH VOLJKWO\DEUDVLYH
PDWHULDO VXFK DV DQLPDO KLGH DQG QRW RQO\ RQ D VWRQH VODE VLQFH RQ WKH $OLEHJ EHDGV ZH


ZHUH XQDEOH WR LGHQWLI\ DQ\ FOHDU PDUNV RI FRQWDFW ZLWK DQ DEUDVLYH PDWHULDO DOWKRXJK WKLV
FRXOGDOVREHUHODWHGWR WKHVWUXFWXUH RIWKHUDZPDWHULDO

0LFURGULOOV  ERUHUV DVVRFLDWHGZLWKEHDGPDNLQJZHUHIRXQGLQVLJQLILFDQWQXPEHUV

DW )UDQFK HYR%XOJDULDDQG6FKHOD&ODGRYHL5RPDQLD%RQVDOOHW
DOLL  *XURYD %RQVDOO  7KH RFFXUUHQFH RI VXFK GULOOV LV DWWHVWHG LQ PXFK VPDOOHU
QXPEHUVLWHPVLQ FXOWXUH FRQWH[WVDW&XLQD7XUFXOXL*XUD%DFLXOXLDQG&kUFHD
/D]DURYLFL0D[LP'LQDQ1LFDLQ5RPDQLD 7KHRFFXUUHQFHRI
RWKHUW\SHVRIWRROVFRQQHFWHGZLWKEHDGPDNLQJNQLYHVVDZVPLQLDWXUHPRUWDUVVDQGVWRQH
DEUDGHUVRUOLPHVWRQHZRUNWDEOHV± FI:ULJKW*DUUDUGZDVQHYHULQYHVWLJDWHGRU WDNHQ
LQWRFRQVLGHUDWLRQ

7KHSUHVHQFHRIXVHZHDUPDUNVRQDUFKDHRORJLFDODGRUQPHQWV LVLQIOXHQFHGERWKE\
WKHGXUDWLRQDQGIUHTXHQF\RIXVHDVZHOODVE\WKHPDQQHULQZKLFKWKH\ZHUHZRUQ,QWKH
FDVHRIWKHGLVF EHDGV VWXGLHG E\WKHSUHVHQWDXWKRUVLWZDVGLIILFXOWWRLGHQWLI\DUHDV RIXVH
ZHDURUWRREVHUYHDQ\GHIRUPDWLRQ RIWKHSHUIRUDWLRQV2QO\WKHLQYDVLYHSROLVKRIRQHRIWKH
$OLEHJ LWHPV )LJ  DQG VOLJKW URXQGLQJ RI WKH HGJHV )LJ  LQGLFDWHG WKDW WKH SLHFHV
KDG EHHQ ZRUQ 7KHUH ZHUH QR VLJQV RI ORQJ GXUDWLRQ XVHZHDU 7ZR UHDVRQV IRU WKH
VXSHUILFLDOXVHZHDUFDQEHVXJJHVWHGHLWKHUWKHSLHFHVZHUHORVWVKRUWO\DIWHUWKH\VWDUWHG WR
EHZRUQRUWKH\ZHUHRQO\ZRUQLQIUHTXHQWO\HJIRURFFDVLRQDOFHUHPRQLHV"7KHIDFWWKDW
WKH VOLJKW XVHZHDU KDV DQ LQYDVLYH DQG QRW ORFDOL]HG DSSHDUDQFH PLJKW LQGLFDWH WKDW WKH
SLHFHV ZHUH QRW IL[HG LQ XVH HJ E\ VHZLQJ %RQQDUGLQ  0RVW OLNHO\ WKH\ ZHUH
DWWDFKHGWRDWKUHDGLQDFRPSRVHGRUQDPHQWVXFKDVDQHFNODFH RUDEUDFHOHW

&HUDPLFEHDGVZHUHPRGHOOHGIURPFOD\DQGSHUIRUDWHGZKLOHWKHFOD\ZDVVWLOOVRIW
DQG WKHQ ILUHG $QRWKHU RSWLRQ ZDV WR IROORZ WKH RSHUDWLRQDO FKDLQ HPSOR\HG IRU WKH VKHOO
ERQH DQG VWRQH EHDGV E\ FKRRVLQJ D SRWWHU\ VKHUG UHJXODUL]LQJ LWV HGJHV E\ DEUDVLRQ WKHQ
PDNLQJ D SHUIRUDWLRQ IURP RQH RU ERWK IDFHV 7KH ILQH TXDOLW\ RI WKH SRWWHU\ VKHUG IURP
ZKLFK  VSHFLPHQ ZDV PDGH DV ZHOO DV LWV VPDOO VL]H DQG WKH UDWLR
EHWZHHQWKHGLDPHWHURIWKHSHUIRUDWLRQDQGWKDWRIWKHSLHFHDVDZKROHOHGWKHH[FDYDWRUWR
FRQVLGHULWDEHDGUDWKHUWKDQ DVSLQGOH ZKRUO

&RQWH[W
6RIDUGLVFEHDGV FRQWH[WVKDYHDOPRVWLQYDULDEO\ EHHQ IRXQGLQ
SLW IHDWXUHV GZHOOLQJ VWUXFWXUHV RU µRFFXSDWLRQDO OD\HUV¶ VXJJHVWLQJ WKH\ ZHUH RIWHQ
DVVRFLDWHG ZLWK HYHU\GD\ DFWLYLWLHV 1RQH ZDV UHFRUGHG LQ IXQHUDU\ FRQWH[WV EXW WKLV
REVHUYDWLRQ PD\ EH ELDVHG E\ WKH IDFW WKDW EXULDOV DUH UHODWLYHO\ UDUH
FXOWXUHDUHD

([FHSWLRQVWRWKLVSDWWHUQGRH[LVW$W/HSHQVNL9LULQWKH,URQ*DWHV *RUJHDµKRDUG¶
IRXQG LQ D VPDOO FHUDPLF FRQWDLQHU DVVLJQHG WR WKH 6WDU HYR /9 ,,, RFFXSDWLRQ SKDVH
LQFOXGHG WKUHH GLVFVKDSHG EHDGV DVVRFLDWHG ZLWK RWKHU LWHPV RI SHUVRQDO DGRUQPHQW ±
F\OLQGULFDO DQG EDUUHOVKDSHG VWRQH EHDGV F\OLQGULFDO DQG EDUUHOVKDSHG EHDGV RI 6SRQG\OXV
VKHOO JDVWURSRG VKHOO EHDGV D SHUIRUDWHG ERQH EXWWRQ DQG D ERQH SHQGDQW 6UHMRYL 
%RUL  )ODWGLVFEHDGVZHUHDOVRIRXQGLQVHYHUDOEXULDOVDW/HSHQVNL9LU DQGWKHQHDUE\
VLWH RI 9ODVDF GDWLQJ DURXQG WKH WLPH RI WKH 0HVROLWKLF1HROLWKLF WUDQVLWLRQ HW DOLL
 ,Q WKHVH LQVWDQFHV DOWKRXJK WKH EXULDO WUDGLWLRQ ZDV HVVHQWLDOO\ 0HVROLWKLF WKH
LQGLYLGXDOV ZLWKLQ WKH JUDYHV OLNHO\
HOVHZKHUH %RUL 3ULFH  ,QWHUHVWLQJO\WKHFRORXU RIWKHGLVFEHDGV IURP /HSHQVNL9LU
EXULDOVLVGHVFULEHGDV³SULPDULO\UHGGLVKDQGZKLWHJUD\LVK


 'LVFRLGDO%HDGV

WR WKH SUHVHQFH RI 1HROLWKLFW\SH GLVF EHDGV LQ VRPH )LQDO 0HVROLWKLF RU µ0HVROLWKLF
1HROLWKLF 7UDQVLWLRQ 3HULRG¶ EXULDOV DW /HSHQVNL 9LU QR GLVF EHDGV DQG YHU\ IHZ RWKHU

IURPWKHVLWH

'LVF EHDGV ZHUH UHFRYHUHG IURP WKH %XOJDULDQ (DUO\ 1HROLWKLF VLWHV RI <DEDONRYR
VKHOO DQG VWRQH 9DVLOHYD +DG]KLSHWNRY   )LJ ,OLQGHQWVL SRWWHU\ ± *UHEVND
.XORYDHWDOLL SILJ DQG*DODEQLNVKHOODQGVWRQH*XURYD%RQVDOO± DOO
IURPQRQIXQHUDU\FRQWH[WV
6LPLODUGLVFEHDGV GRRFFXU LQIXQHUDU\ FRQWH[WVLQ&HQWUDO(XURSHEHORQJLQJWRWKH
/LQHDUEDQGNHUDPLN /%. FXOWXUH 7KH UDZ PDWHULDOV LQFOXGH ERWK RVVHRXV DQG PLQHUDO
VXEVWDQFHV7KH\ KDYHEHHQUHSRUWHGIURP JUDYHVDW$LWHUKRIHQ6HQJNRIHQDQG0DQJROGLQJ
LQ*HUPDQ\9HGURYLFHLQ0RUDYLD DQG0LWWHUQGRUIDQG6DODGRUILQ$XVWULD/HQQHLV
6SRQG\OXV VKHOOGLVFEHDGVZHUHIRXQGLQWKH6RSRW%LFVNHSKDVHRIWKH/%.LQ7UDQVGDQXELD
0DNND\ HWDOLL ILJVDVVRFLDWHGZLWKWKHEXULDORIDPDWXUHDGXOWPDOH $
VPDOO PDUEOH EHDG GLDPHWHU OHVV WKDQ  PP ZDV IRXQG DW 6WU|JHQ DQ HDUO\ /%. VLWH LQ
/RZHU$XVWULDEXWLQDQRQIXQHUDU\FRQWH[W/HQQHLVS

&RQFOXVLRQV

7KH GLVF EHDGV WK

/DWH (SLSDODHROLWKLF DQG (DUO\ 1HROLWKLF RI WKH /HYDQW DQG $QDWROLD GDWLQJ EDFN WR WKH
7HUPLQDO 3OHLVWRFHQH 7KH\ GLIIHU PDUNHGO\ IURP WKH IRUPV RI SHUVRQDO RUQDPHQW WKDW
FKDUDFWHULVHWKHSUHFHGLQJ0HVROLWKLFLQ6RXWKHDVW(XURSHDQGWKHLUDSSHDUDQFHLQWKHUHJLRQ
ZDV XQGRXEWHGO\ OLQNHG WR VSUHDG RI WKH ILUVW IDUPLQJ FRPPXQLWLHV <HW WKH\ DUH
± SHUKDSV DV D
FRQVHTXHQFH RI WKH H[FDYDWLRQ RU UHFRYHU\ PHWKRGV HPSOR\HG ± DQG GHWDLOV RI WKHLU ILQG
FRQWH[WV KDYH UDUHO\ EHHQ SXEOLVKHG PDNLQJ LW GLIILFXOW WR DVVHVV WKHLU VLJQLILFDQFH IRU WKH
FRPPXQLWLHVWKDWXVHGWKHP

$W VRPH VLWHV OLNH 6FKHOD &ODGRYHL LQ WKH GRZQVWUHDP DUHD RI WKH ,URQ *DWHV LQ
VRXWKZHVW5RPDQLDWKHUHLVFOHDUHYLGHQFHRIORFDOSURGXFWLRQDQGXVHLQKRXVHKROGFRQWH[WV
 ,Q IDFW WKH RQO\ VHFXUH
DVVRFLDWLRQV DUH ZLWK )LQDO 0HVROLWKLF RU µ0HVROLWKLF1HROLWKLF 7UDQVLWLRQ¶ EXULDOV LQ WKH
,URQ*DWHV *RUJHZKHUHGLVFEHDGVRFFXUUHGZLWKRWKHUEHDG IRUPVDSSDUHQWO\LQFRPSRVHG
RUQDPHQWV QHFNODFHV DQG EUDFHOHWV ZRUQ E\ WKH GHFHDVHG WKRXJK WKHLU SUHVHQFH LQ WKH
EXULDOV LV JHQHUDOO\ DFFHSWHG DV
)XQHUDU\XVHLVDOVRZHOOGRFXPHQWHGLQWKHHDUOLHVW1HROLWKLF/%.RI&HQWUDO(XURSH

'LVFEHDGVZHUHPDGHRIYDULRXVPDWHULDOV± ERQHVKHOODQGIUHTXHQWO\VWRQH$FURVV
FXOWXUH DUHD JHQHUDOO\ DV LQ WKH 1HDU (DVW WKHUH DSSHDUV WR KDYH EHHQ D
SUHIHUHQFHIRUJUHHQFRORXUHGPLQHUDOVDQGURFNV IRUWKHPDQXIDFWXUHRIVWRQHEHDGVVXFKDV
PDODFKLWHQHSKULWHDQGFKORULWHVFKLVWDOWKRXJKJUH\ZKLWHDQGUHGGLVKFRORXUHGVWRQHVDUH
QRW XQFRPPRQ ,QWHUHVWLQJO\ LQ WKH )LQDO 0HVROLWKLF EXULDOV DW /HSHQVNL 9LU DQG 9ODVDF
LQ WKH ZLGHU UHJLRQ WKH
VWRQH GLVF EHDGV ZHUH SUHGRPLQDQWO\ LI QRW H[FOXVLYHO\ UHG RU ZKLWH LQ FRORXU DOWKRXJK LQ
VRPHEXULDOVWKH\FRRFFXUUHGZLWKRWKHUIRUPVRISHUVRQDODGRUQPHQWSHQGDQWVULQJVWKDW
ZHUHPDGHRIJUHHQVWRQHV
4XHVWLRQVUHPDLQUHJDUGLQJ WKHSUHFLVHGHILQLWLRQRIDµGLVFEHDG¶VKRXOGWKHUHEH D
GLPHQVLRQDO OLPLWDWLRQ EHDG YHUVXV ULQJ" RU VKRXOG WKH GLVWLQFWLRQ EH EDVHG RQ WKH


PDQXIDFWXULQJ WHFKQLTXH XVHG" 6KRXOG SHUIRUDWHG SRWWHU\ GLVFV EH VHHQ DV IXQFWLRQDO LWHPV
UDWKHU WKDQ DGRUQPHQWV EDVHG SXUHO\ RQ WKHLU UHODWLYHO\ ODUJH GLPHQVLRQV DQG URXJKQHVV RI
DSSHDUDQFH"2XUYLHZLVWKDW³VL]HGRHVQRWPDWWHU´EXWWHFKQRORJ\GRHVDQGIXQFWLRQDODQG
XVHZHDUDQDO\VLVVKRXOGEHJLYHQJUHDWHUZHLJKWLQIXWXUHUHVHDUFK

7KH GLVFRLGDO EHDG IRUP EHFDPH HYHQ PRUH FRPPRQ LQ WKH ODWHU 1HROLWKLF DQG
(QHROLWKLF RI 6RXWKHDVW DQG &HQWUDO (XURSH ZLWK D VLJQLILFDQW GLYHUVLILFDWLRQ RI WKH UDZ
PDWHULDOVXVHGWRLQFOXGHPDPPDOERQHVILVKRSHUFXODUERQHVPDUEOHDQGRWKHUVWRQHVDQG
FHUDPLFV

$FNQRZOHGJHPHQWV :H ZRXOG OLNH WR WKDQN ,RDQ

SURYLGHG WKH LQIRUPDWLRQ SKRWRV DQG GUDZLQJ IRU WKH   0RQLFD
¶V ZRUN ZDV VXSSRUWHG E\ D JUDQW RI WKH 0LQLVWU\ RI 5HVHDUFK DQG ,QQRYDWLRQ &1&6 
8(),6&',SURMHFWQXPEHU31,,,37(ZLWKLQ31&',,,,

%LEOLRJUDSK\

$QGUHHVFX5 ,Q
&DPSDQLD  &,0(&
KWWSFURQLFDFLPHFURGHWDOLXDVS"N 
0* 
S,Q7KH&DUSDWKLDQ%DVLQDQGWKH1RUWKHUQ%DONDQVEHWZHHQDQG%&
&RPPRQ $VSHFWV DQG 5HJLRQDO 'LIIHUHQFHV (G & 3RSD $QQDOHV 8QLYHUVLWDWLV $SXOHQVL
6HULD+LVWRULFD,,0HJD3XEOLVKLQJ+RXVH&OXM1DSRFD
%iQII\ ( 7KHWK PLOOHQQLXP %& ERXQGDU\ LQ :HVWHUQ 7UDQVGDQXELD DQG LWV UROH LQ
WKH &HQWUDO (XURSHDQ 1H OJ\3LW\HUGRP VHWWOHPHQW
%XGDSHVW
%DU<RVHI0D\HU'(  3RUDW*UHHQVWRQHEHDGVDWWKHGDZQRIDJULFXOWXUHS
,Q3URFHHGLQJVRIWKH1DWLRQDO$FDGHP\RI6FLHQFHVRIWKH86$ 
%DUJH0DKLHX + %HOOLHU & %RWW 6 &DWWHODLQ 3  )LFKHV W\SRORJLTXHV GH
O¶LQGXVWULHRVVHXVHSUpKLVWRULTXH&DKLHU,92EMHWVGHSDUXUH3XEOLFDWLRQGHO¶8QLYHUVLWpGH
3URYHQFH$L[HQ3URYHQFH
%D\VDO( $SUHOLPLQDU\W\SRORJ\IRUEHDGVIURPWKH1HROLWKLFDQG&KDOFROLWKLFOHYHOV
+|\N$QDWROLD$QWLTXDS
%HOGLPDQ &  ,QGXVWULD PDWHULLORU GXUH DQLPDOH vQ SUHLVWRULD 5RPkQLHL 5HVXUVH

±
%HOGLPDQ & 6]WDQFV '0 
%XGXLDVFD 
DQLPDOH  ,Q &URQLFD & $UKHRORJLFH
&DPSDQLDKWWSZZZFLPHFUR$UKHRORJLHFURQLFD&$FGLQGH[KWP
%RQQDUGLQ6 /DSDUXUHIXQpUDLUHDX1pROLWKLTXHDQFLHQGDQVOHV%DVVLQVSDULVLHQHW
UKpQDQ 5XEDQp +LQNHOVWHLQ HW 9LOOHQHXYH6DLQW*HUPDLQ 6RFLHWp 3UpKLVWRULTXH )UDQoDLVH
0pPRLUH3DULV
%RQVDOO& 7KH0HVROLWKLFRIWKH,URQ*DWHVS,Q 0HVROLWKLF(XURSH (GV
*%DLOH\36SLNLQV &DPEULGJH
%RQVDOO & $  7KH ,URQ *DWHV 0HVROLWKLF ± D EULHI UHYLHZ RI UHFHQW
GHYHORSPHQWV/¶$QWKURSRORJLHS


 'LVFRLGDO%HDGV

%RQVDOO & $ 9 'REUHVFX 5 1&  6FKHOD

&ODGRYHL/D&DQWRQNP  S,Q &URQLFD& $UKHRORJLFHGLQ5RPkQLD
&DPSDQLD  KWWSFURQLFDFLPHFURGHWDOLXDVS"N  G 'UREHWD7XUQX6HYHULQ
0HKHGLQWL6FKHOD&ODGRYHL/D&DQWRQNP
'  'HDWKZD\V DW /HSHQVNL 9LU 3DWWHUQV LQ 0RUWXDU\ 3UDFWLFHV %HOJUDGH
6HUELDQ$UFKDHRORJLFDO6RFLHW\2[ERZ%RRNV2[IRUG
7'6WURQWLXPLVRWRSHVGRFXPHQWJUHDWHUKXPDQPRELOLW\DWWKHVWDUW
RIWKH%DONDQ1HROLWKLF S,Q3URFHHGLQJVRIWKH1DWLRQDO$FDGHP\RI6FLHQFHV
RIWKH86$
&$, 6WHIDQRYL  6 'LPLWULMHYL  9 &ULVWLDQL ( *XURYD 0
$QWRQRYL  ' $OOXp ($ )LOLSRYL  '  /DWH 0HVROLWKLF OLIHZD\V DQG GHDWKZD\V DW
9ODVDF6HUELD -RXUQDORI )LHOG$UFKDHRORJ\  S
9   S  ,Q $FWHV GX 9,,H
&RQJUqV,QWHUQDWLRQDOGHV6FLHQFHV3UpKLVWRULTXHVHW3URWRKLVWRULTXHV,3UDJXH
%RURQHDQ 9 3DOpROLWKLTXH6XSpULHXUHWeSLSDOpROLWKLTXHGDQVOD=RQHGHV3RUWHVGH
)HU
$%RQVDOO& 7KH±H[FDYDWLRQVDW6FKHOD&ODGRYHL5RPDQLD
UHYLVLWHGS,Q )HVWFKULIWIRU3DROR%LDJL (G(OLVDEHWWD6WDUQLQL $UFKHRSUHVV%$5
%XGDSHVWD
$0F6ZHHQH\.%RQVDOO& 6FKHOD&ODGRYHL± $VXSSOHPHQWWR
$QDOHOH%DQDWXOXL61;;,,S
(  3DUXUHV QpROLWKLTXHV HQ FRTXLOODJHV PDULQV GpFRXYHUWHV HQ WHUULWRLUH
URXPDLQ 'DFLD 16 ;9,,S
&ULVWLDQL ( %RULF '  3HUVRQDO DGRUQPHQW DQG SHUVRQKRRG DPRQJ WKH /DVW
0HVROLWKLF)RUDJHUVRIWKH'DQXEH*RUJHVLQWKHFHQWUDO%DONDQVDQGEH\RQGS,Q
1RW-XVWIRU6KRZ7KH$UFKDHRORJ\RI%HDGV%HDGZRUN 3HUVRQDO2UQDPHQWV(GV'(
%DU<RVHI0D\HU&%RQVDOO$&KR\NH 2[IRUG 3KLODGHOSKLD
'LQDQ (+ 1LFD 0  LX GLQ
2OWHQLD$UKLYHOH2OWHQLHL61 ;S
*LPEXWDV0 2EUHDQGLWV3ODFHLQ2OG(XURSH 6DUDMHYR
*OXPDF 3  $Q DUFKDHRPHWDOOXUJLFDO VWXG\ RI WKH PDWHULDO IURP 6HOHYDF =ERUQLN
QDURGQRJPX]HMDS 
*OXPDF 3  &RSSHU PLQHUDO ILQGV IURP 'LYRVWLQ S  ,Q 'LYRVWLQ DQG WKH
1HROLWKLFRI&HQWUDO6HUELD (WKQRORJ\PRQRJUDSKVQXPEHU
3LWWVEXUJK
*UHEVND.XORYD 0 .XORY , 6DODQRYD / 9LHXJXH - *RPDUW /  7KH (DUO\
1HROLWKLF VHWWOHPHQW RI ,OLQGHQWVL 6WUXPDQ\L 0XQLFLSDOLW\ ([FDYDWLRQV 
$UKHRORJLMDS 
*XURYD0%RQVDOO& ([SHULPHQWDOUHSOLFDWLRQRIVWRQHERQHDQGVKHOOEHDGVIURP
(DUO\1HROLWKLFVLWHVLQ6RXWKHDVW(XURSHS,Q 1RW-XVWIRU6KRZ7KH$UFKDHRORJ\
RI %HDGV %HDGZRUN  3HUVRQDO 2UQDPHQWV (GV '( %DU<RVHI 0D\HU & %RQVDOO $
&KR\NH 2[IRUG 3KLODGHOSKLD
.DUPDQVNL6 5DQLQHROLW'RQMD%UDQMHYLQD .DWDORJL]ORåEH2GåDFL;
.DUPDQVNL 6  'RQMD %UDQMHYLQD $ 1HROLWKLF VHWWOHPHQW QHDU 'HURQMH LQ WKH
9RMYRGLQD 6HUELD 6RFLHWj SHU /D 3UHLVWRULD H 3URWRVWRULD GHOOD 5HJLRQH )ULXOL9HQH]LD
*LXOLD4XDGHUQR
/D]DURYLFL*K0D[LP= *XUD%DFLXOXL &OXM1DSRFD
/HQQHLV (  7KH EHJLQQLQJ RI WKH 1HROLWKLF LQ $XVWULD ± D UHSRUW DERXW UHFHQW DQG
FXUUHQWLQYHVWLJDWLRQV'RFXPHQWD3UDHKLVWRULFDS 


/HQQHLV (  0HVROLWKLF KHULWDJH LQ (DUO\ 1HROLWKLF EXULDO ULWXDOV DQG SHUVRQDO
DGRUPHQWV 'RFXPHQWD 3UDHKLVWRULFDS
/XFD 6$  /LYLQJ XQGHU WKH *RGV   .DUO 5DPVWRIHU 3XEOLVKLQJ
+RXVH6XFHDYD
0  /¶DUW PRELOLHU SDOpROLWKLTXH HW PpVROLWKLTXH GH 5RXPDQLH HW GH OD
5pSXEOLTXH0ROGRYDHQFRQWH[WHFHQWUDOHWHVWHXURSpHQ
 0  $ %RQVDOO &  $QDOL]D

%DQDWLFD;;9,,S
 0 5DGX 9  $ %RQVDOO & D ([SHULPHQWDO VWXGLHV RI
SHUVRQDO RUQDPHQWV IURP WKH ,URQ *DWHV 0HVROLWKLF $UFKDHRORJLFDO DQG $QWKURSRORJLFDO
6FLHQFHV  S
 00LUHD3 5DGX9E ([SORLWDWLRQRIDTXDWLFUHVRXUFHVIRUDGRUQPHQW

VRXWKHUQ5RPDQLD 4XDWHUQDU\,QWHUQDWLRQDOS 

0DNND\- ([FDYDWLRQVDWWKH.|U|VFXOWXUHVHWWOHPHQWRI gUHJV] LQ
±S ,Q &XOWXUDODQGODQGVFDSHFKDQJHVLQVRXWKHDVW+XQJDU\,5HSRUWV
(G6%|N|Q\L$UFKDHROLQJXD0DLQ6HULHV %XGDSHVW
0DNND\-6WDUQLQL(DQG7XORN0  ([FDYDWLRQVDW%LFVNH*DODJRQ\iV3DUW,,,
7KH 1RWHQNRSI DQG 6RSRW%LFVNH FXOWXUDO SKDVHV 4XDGHUQR  6RFLHWj SHU OD 3UHLVWRULD H
3URWRLVWRULDGHOOD5HJLRQH)ULXOL9HQH]LD*LXOLD7ULHVWH
0F3KHUURQ $ 5DVVRQ - *DOGLNDV %  2WKHU DUWHIDFW FDWHJRULHV S  ,Q
'LYRVWLQ DQG WKH 1HROLWKLF RI &HQWUDO 6HUELD (GV $0F3KHUURQ ' 6UHMRYLF (WKQRORJ\
PRQRJUDSKVQXPEHU3LWWVEXUJK
0LUHD 3  
3K'7KHVLV 
2URVV.:KLWWOH$ &KDSWHU)LJXUDOUHSUHVHQWDWLRQVDQGRWKHUFOD\REMHFWVS
 ,Q 7KH (DUO\ 1HROLWKLF LI WKH *UHDW +XQJDULDQ 3ODLQ ,QYHVWLJDWLRQV RI WKH .|U|V
FXOWXUHVLWHRI(FVHJIDOYD&RXQW\%HNHV (G$:KLWWOH YROXPH,, %XGDSHVW
$ 'XERYD7LELVFXV  ,VWRULH
 9ROXPvQFKLQDWFHOHLGH  S
$  
(GLWXUD$JLU 
5LJDXG 6  /D SDUXUH WUDFHXU GH OD JpRJUDSKLH FXOWXUHOOH HW GHV G\QDPLTXHV GH
SHXSOHPHQW DX SDVVDJH 0pVROLWKLTXH1pROLWKLTXH HQ (XURSH 8QSXEOLVKHG 3K' 7KHVLV
8QLYHUVLWp%RUGHDX[
' (XURSH¶V)LUVW0RQXPHQWDO6FXOSWXUH1HZ'LVFRYHULHVDW/HSHQVNL9LU
7KDPHVDQG+XGVRQ/RQGRQ
6WDUQLQL(6]DNPiQ\*:KLWWOH$ &KDSWHU3ROLVKHGJURXQGDQGRWKHUVWRQH
DUWHIDFWVS,Q7KH(DUO\1HROLWKLFRIWKH*UHDW+XQJDULDQ3ODLQ,QYHVWLJDWLRQVRI
WKH.|U|V FXOWXUHVLWHRI(FVHJIDOYD&RXQW\%HNHV (G$:KLWWOHYROXPH,, %XGDSHVW
7UEXKRYLFL % .DUPDQVNL 6  'RQMD %UDQMHYLQD  3RNUHWQL PDWHULDO L

6 7KH:KLWH%HDXW\± HYRFXOWXUHMHZHOOHU\'RFXPHQWD3UDHKLVWRULFD
S 
9DVLOHYD=K+DG]KLSHWNRY, &KDSWHU;2UQDPHQWVS,Q <DEDONRYR
YRO(GV-5RRGHQEHUJ./HVKWDNRY93HWURYD6RILD


 'LVFRLGDO%HDGV

7DEOH

6WRQH
,G 6LWH 6KHOO %RQH 2WKHU &HUDPLF 5HIHUHQFH
:KLWH *UHHQ
8QVSHFLILHG
HWDOLL
 $OLEHJ 

 $ULD%DEL  S
 %ODJRWLQ *XURYD%RQVDOO

 &XLQD7XUFXOXL " "
 &ULVWLDQ  /XFD
0F3KHUURQHWDOLL
 'LYRVWLQ " 
*OXPDF
.DUPDQVNL
 'RQMD%UDQMHYLQD  "
.DUPDQVNL 
 'UHQRYDF 
 (FVHJIDOYD   0DNND\HWDOLL 
  0DNND\
 )XUWD&ViWy  0DNND\
/D]DURYLFL0D[LP
 *XUD%DFLXOXL 

S
 /HSHQVNL9LU   PDODFKLWHS
XQVSHFLILHG
    0LUHD
 
SHUV
 6FKHOD&ODGRYHL   FRPP%RQVDOOHWDOLL

  %iQII\

 
SHUVFRPP
HWDOLL 
 9ODVDF S

7RWDO      


QXPEHURIEHDGVXQSXEOLVKHG


)LJ HYRVLWHVPHQWLRQHGLQWKHWH[W


 'LVFRLGDO%HDGV

)LJ   &XLQD 7XUFXOXL   YDULRXV SHUVRQDODGRUQPHQWV

QR VFDOH  ERQH DQG VWRQH EHDGV
VXUYLYLQJ ERQH EHDGV I DQG F SKRWR E\ 0
QHEHDGVDIWHU$QGUHHVFX


)LJ&XLQD7XUFXOXLERQHEHDGVWHFKQRORJLFDODQGXVHZHDUPDUNV  HGJHGHWDLO
 SHUIRUDWLRQGHWDLO VDZLQJPDUNV VKHOOGLVFEHDGV
DIWHU$QGUHHVFX 


 'LVFRLGDO%HDGV

)LJ 6WRQHGLVFEHDGV $OLEHJSKRWRE\

DIWHU 0LUHD 'LYRVWLQDIWHU0F3KHUURQ 6FKHOD&ODGRYHLPDODFKLWH
IUDJPHQWVDQGEHDGV (FVHJIDOYD VWRQHEHDGDIWHU6WDUQLQLHWDOLL 


)LJ  $OLEHJ VWRQH EHDGV ± WHFKQRORJLFDO DQG XVHZHDU PDUNV  HGJH GHWDLO 
SHUIRUDWLRQGHWDLOV  VXUIDFHGHWDLOV


 'LVFRLGDO%HDGV

)LJ&HUDPLFEHDGV  &ULVWLDQDIWHU/XFD  *XUD%DFLXOXLDIWHU/D]DURYLFL

0D[LP  QR VFDOH  %XGXLDVFD DIWHU 0LUHD   
SKRWR DQG GUDZLQJ E\  3LW\HUGRPE
DIWHU %iQII\    )XUWD &ViWy DIWHU 0DNND\ HW
DOLL