How Much Do They Cost?

|XAU SPVs are initially valued based on the acquisition cost of surface rights, along with expenses for Measurement, Reporting, and Verification (MRV) technology, legal services, administrative fees, and associated travel and marketing costs.

Investor funds are never used to cover |XAU salaries, which are solely drawn from income once it is generated.

The surface rights account for 90–95% of investor funds and are priced based on the costs incurred by the NGO to protect the specific plot of land over the next 30 years. These costs typically include:

• Land Acquisition & Management: Purchasing or leasing pristine areas to protect them from agricultural buyers and prevent deforestation, while also funding local teams and essential infrastructure to maintain and oversee conservation efforts.

• Research: Conducting studies on endangered species to guide and improve conservation strategies.

• Fire Prevention & Anti-Poaching: Addressing key threats through fire brigades, proactive mitigation, and anti-poaching units equipped with necessary tools.

• Restoration: Reintroducing specific flora and fauna to restore balance within local ecosystems.

• Local Community Engagement: Allocating funds to uplift and educate local communities, ensuring they are active partners in conservation efforts.

Do |XAU Nature Assets Generate Returns?

Yes, |XAU Nature Assets create income streams by converting ecological and social benefits into financial value, directly benefiting |XAU SPVs, partner NGOs, and local communities.

Currently, |XAU focuses on monetising:

• Nature Outcomes: These are measurable and verified results, such as increased species populations or improved water flows. Inspired by nature bonds, they provide a results-driven approach to conservation funding, with built-in performance incentives for conservation teams.

• Biodiversity Credits: As biodiversity gains recognition as an essential ecosystem service, the emerging biodiversity credit market seeks to leverage the strengths of the carbon market while addressing its flaws. |XAU actively supports efforts to ensure additionality and prevent duplication in this space.

Although |XAU’s primary focus is not the carbon market, we may explore carbon capture additionality as a future income source, provided it aligns with the long-term sustainability of the asset.

As global regulations advance to tackle the climate crisis, |XAU prioritises the collection of high-integrity, auditable ecology data. This ensures our Nature Assets are well-positioned to capture growing value from their ecological and social contributions in both private markets and public policy frameworks.