Ladies and gentlemen, thank you for standing by, and welcome to the Dundee Precious Metals Fourth Quarter And Full Year 2019 Results Call. At this time, all participants are in a listen only mode. Presentation, there will be a question and Please be advised, today's conference is being recorded. Would now like to hand the conference over to your speaker, Jennifer Cameron, Director of Investor Relations. Please go ahead.
Thank you and good morning. I am Jennifer Cameron, Director of Investor Relations, and I'd like to welcome you to Dundee Precious Metals 4th quarter conference call. With me today are Rick Howe, President and CEO and Hume Kyle, Chief Financial Officer, who lead to comment on our results, as well as David Gray, Chief Operating Officer. Available for the question and answer session following our remarks. After the close of business yesterday, we released our 4th quarter results and our 3 year outlook hope you've had an opportunity to review our material.
All forward looking information provided during this call is subject to the forward looking qualification which is detailed in our news release and incorporated in full for the purposes of today's call. Certain financial measures referred to during the call are not measures recognized under IFRS and are referred to as non GAAP measures. These measures have no standardized meaning under IFRS may not be comparable to similar measures presented by other companies. The definitions established and calculations performed by EPM are based by management reasonable judgment and are consistently applied. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.
Please refer to the non GAAP financial measures section of our most recent MD and A for reconciliations of these non GAAP measures. Please note that unless otherwise stated, operational and financial information communicated during the call has generally been rounded and any references to 2018 pertain to the comparable period of 2019.
I'll now turn the call over to Rick.
Thanks, Jennifer. Good morning, and thank you all for joining us today. I'm pleased to provide you with an overview of our fourth quarter full year 2019 results. And provide some insights into our achievements over this period. Some highlights of the year include record gold production as we successfully commissioned and ramped up our 2nd mine at a debt pay.
Achieve our updated full year guidance for gold and copper production concentrates melted in all in sustaining costs. Growing our free cash flow by 25% and increasing our adjusted net earnings by 18% compared to 2018. Security and agreements to fill the smelters existing capacity for the next 3 years and strengthening our balance sheet as we reduced debt and increased our cash position. 2019 was a pivotal year for DPM as we had successfully completed a multiyear investment phase and successful optimization of our assets. We entered 2020 in a strong position significant free cash flow expected from the business in the coming years.
As a result, we're very pleased to reward our shareholders with the introduction of a regular dividend have declared an inaugural quarterly dividend of $0.02 per share, underscoring our commitment to maintaining a disciplined approach to capital allocation, well as our confidence that order with record production of 70,000 gold ounces at an all in sustaining cost of $679 an ounce. Our strong 4th quarter performance contributed to record annual production in 2019 at more than 230,000 ounces of gold £37,000,000 of copper. And an all in sustaining cost of $7.25 an ounce and free cash flow generation of $67,000,000 for the year. I'd add a 10 day strong 4th quarter results, which included production of approximately 27,000 ounces and cash costs of 395 dollars per ounce were a result of higher gold grades in lower treated. Gold recovery in concentrate, which was 85% during the 4th quarter, continued to perform as expected.
Payable gold and metals sold of approximately 39,000 ounces greater than the gold contained in concentrate produced and was a substantial increase compared with the 3rd quarter. This was due to the sale during the quarter of excess concentrate in inventory. Which was drawn down to more normal levels following a buildup in Q3 as we finalize the concentrate sales agreements. At its FA delivered impressive performance over the last two quarters, following its commissioning in June, producing approximately 57,000 ounces now in 2019 and achieving the high end of its updated guidance. Early in the year, we successfully resolved a temporary constraint at ADAFAID due to the integrated mine waste facility through a number of initiatives targeting improvements to the consolidation, freight and trade speed up of cell construction and building contingency sales.
I'm pleased to say that settlement timing of tailings has improved and with construction of new sales ongoing, we expect no further constraints or delays and further operating flexibility going forward. Added that may continue to operate well and meet expectations in terms of throughput gold recoveries and grades in the mail. It is quite exceptional that we were able ramp up to design throughput and recoveries approximately 3 months after declaring commercial production, attribute to our operating team's strong capabilities and our Leo for 2019 as our newest mine contributes its 1st full year of production and cash flow generation to DPM's portfolio. We are also continuing with our exploration efforts around Natatepec. We plan to drill approximately 5200 Meters on Cernak and other nearby satellite deposits on the mining concession during 2020, focused on sulfide mineralization with the goal of extending the mine life at Atatepec.
In 2019, we commenced drilling in the Chateaukaya prospect on a Turigy exploration license where we have discovered several steeply dipping gold bearing coarse paste, which we will continue to drill in 2020. Talabets continued to track record of strong consistent operational performance and achieved its 2019 guidance producing 173,000 gold ounces in over £7,000,000 of copper. 4th quarter production of approximately 43,000 gold ounces and £10,000,000 of copper was slightly ahead of our expectations as a result of mining and higher grade zones and higher gold recoveries in Pyrate concentrate. We have a number of ongoing improvement projects that are expected to enhance revenue and decrease costs, including a drill amount and blast optimization and transition from the use of and photoemulsion explosives. Autonomous drone survey further mill optimization using advanced analytics moved to integrated and dynamic planning and execution with MineRP and advancing our digital smart center for improved operating positioning.
We expect Chelopech's gold production in 2020 to be comparable to 2019, reflecting grades in line with white line levels. In terms of exploration, we're focused on extending the mine life through our in my and brownfields exploration programs. In 2019, a total of 60,000 meters of resources development drilling was completed with the aim of expanding the current ore body extensive converting mineral resources of animal reserves. We continued diamond drilling in the fourth quarter from underground positions, along the Southeast Breccia pipe zone, from surface, at the WEDJSO target and at the cross VASTA prospect. At the Sobeys Bridge of Pikes opened, our 6 target areas with a potential 1,000,000 to 3,000,000 ton blocks, which are being prioritized for all drilling roads into other near mine targets in 2020.
The craft of prospect has now been drilled over a strike length of approximately 3 ninety meters with a northeast trend and between 10400 meters from surface an individual drill program of 3 1500 meters to further evaluate the prospect as planned for 2020. Results from the first two holes that the West South target are encouraging. For the first quarter of 2020, our exploration activities are focused on continuing the surface drilling at Craftston and west south targets within Lasveta Vazca exploration license. Tsumeb had its updated 2019 guidance smelting 215,000 tons at a cash cost of $4.21 per tonne added byproduct credits. We successfully completed the planned annual maintenance shutdown during the fourth quarter.
The plan resumed operation in late October and continues to operate well. Despite meeting guidance on securing a 3 year contract for our existing capacity, as you will have seen from our release last night, we recorded $107,000,000 non cash impairment charge at Tsumeb. Kim will provide some commentary on it shortly, but it's worth noting that while we recognize impairment at umab, this is largely driven by the potential to process Chelopech concentrate at higher margins and other outlets, which we believe would generate additional value for Chelopech and the company overall. Following the maintenance in 2019, which resulted in improved temperature stability of the furnace operations, with the NASH shutdown scheduled for 2021, Tsumeb is strongly positioned to deliver record throughput in 20 20. Based on the midpoint of our 2020 guidance range, we are forecasting a 50% increase in complex concentrate smelted as a student compared with 2019.
Revenue for Mike RP in 2019 was $15,600,000, increase over 30% from 2018. Much of this growth occurred in the last 2 quarters of the year, which is an indication of the sharp ramp up and customer updates we received. We expect EBITDA stronger revenue growth and earnings in 2020 as the interest for this unique and powerful enterprise spatial platform for mining continues to grow. We expect another strong year in 2020 as we realize a full year of benefits from our 2 operating mines, optimized performance at our smelter and significant free cash flow generation potential of our total portfolio. We expect consolidated production of $257,000 to 299,000 ounces of gold and £35,000,000 to £40,000,000 of copper with an all in sustaining cost of $700 to $7.80 per gold ounce.
In yesterday's news release, we also initiated a three year outlook for production, all in sustaining costs and capital expenditures. Highlights our strong production profile and declining sustaining capital expenditures and reinforces the long term free cash flow generation potential of our portfolio. In providing a long term outlook for our business, we aim to provide greater visibility to the market as we transition to a mid tier producer. Our 3 year outlook reflects the exceptional progress our team has made over the last several years to improve the performance of our operations and advance our key growth projects like Catatepay. Kim will take you through our 3 year outlook and more detailed 2020 guidance.
In terms of future growth, our 2 months gold project disturbia is advancing well as a potential growth opportunity for the company. We completed the PEA and shared the results earlier in 20 team. In the fourth quarter, we completed an internal optimization study, and we are currently completing hydrophological and due to drilling prior to making a decision in the first half of twenty twenty to move ahead with a repeatability study. We also continue to evaluate additional growth projects which support growth that have the potential to generate strong returns, enhanced value and enhanced value of the company. In December of last year, we announced that almost after almost 7 years as CEO in 10 years with the company, I will be stepping down and David Ray, our current Chief Operating Officer, will be $16,000,000 as CEO at our annual general meeting today.
Dave has been instrumental in our achievements over the last several years and has played a critical role in taking us to where we are today. I'm confident that I am leaving the company in very solid position and a strong hand with daily leadership to take the company forward. To wrap up, we entered 2020 in a very strong position with operating mines expected to deliver strong production and cost performance and Tsumeb well positioned to generate strong performance with no maintenance shutdown in 2020. A strong 3 year outlook for production, all in sustaining costs and lower CapEx that highlights our significant free cash flow generation potential. A strong balance sheet with a net positive cash position.
Growth and exploration opportunities that we believe has the potential to add further value. I'd like to acknowledge all of our dedicated employees across the company who contributed to our strong results in 2019, which was a pivotal year for DPN. As you can see from our 4th quarter results, we have demonstrated that significant free cash flow generation is now underway. Now we are in a strong position to reward our shareholders through a sustainable quarterly dividend. We believe that this combined with our future organic growth potential, and our strong management team represents real growth and value investment opportunity for investors.
I'll now turn the call over Hume for a review of our financial results and our 3 year outlook.
Thanks, Rick. Good morning, everybody. Overall, solid 4th quarter operating performance and record annual gold production for 2019 contributed results, including generating almost $100,000,000 in cash flow and growing our cash flow by approximately 25% and adjusted net earning by 18% compared to last year. In addition, 2019 financial results also benefited from higher gold prices and a stronger U. S.
Dollar, which partially offset the higher local currency denominated costs and lower throughput at Tsumeb, which for the quarter was impacted by the timing of the scheduled Osmole furnace maintenance October. And for the year, it was impacted by the pressurization event we reported with our third quarter that resulted in 24 days of additional downtime. As a result, adjusted net earnings for the 4th quarter were $16,000,000 or $0.19 per share, up $0.11 compared to the same period in 2018. For 2019, adjusted net earnings were $34,000,000 or $0.19 per share, up 0 point 0 $3 compared with 20 18. 4th quarter results while SOVEN were negatively impacted by several factors aggregating to $0.09 These related to higher stock based compensation as a result of strong share performance, the reversal of previously booked tax losses in respect of MineRP and higher metal exposure as Tsumeb, which relates primarily to Q4 increase in secondaries, nature of which is expected to generate better recoveries and reverse much of the increase in exposure that we recognized in Q4.
Adjusted EBITDA for Q4 was $55,000,000, up $43,000,000 compared to the same period in 2018. 2019 adjusted EBITDA was $138,000,000, up $39,000,000 year over year. During Q4, we also reported 107 $1,000,000 impairment, as Rick noted earlier, and this was in respect of Tsumeb. And this was, this impacted our reported net earnings This resulted in a reported net loss attributable to common shareholders of $93,000,000 $71,000,000 for the 4th quarter and full year, respectively. This impairment is attributable to a delay in the expected timing of the Tsumeb expansion and more importantly, the potential for DPM to capitalize on market demand process Chelopech concentrate at other outlet outlets and in its place additional volumes of 3rd party concentrate at Tsumeb.
While this has the potential to generate value for Chelopech and DPM as a whole, this would result in lower revenues and margins of Tsumeb, which for financial reporting purposes must be assessed on a standalone basis. Having said that, we outlook for increasing volumes of complex concentrate coming to market remains favorable and could both support increasing Tsumeb's capacity. However, as we have stated historically, we will not proceed with the expansion without a long term contract that supports the capital investment approximately $39,000,000 to expand capacity to 370,000 tons per year. Until this happens, we will capitalize when able on the opportunity to optimize $33,000,000 $110,000,000, respectively. This contributed to strong free cash flow generation during the 4th quarter for 2019 up $16,000,000 $13,000,000 compared to previous periods.
These results were higher than exception that free cash flow includes higher sustaining capital outlays related to the timing of Tsumeb's scheduled furnace maintenance and the work related to extending the life of Yellowtailings Management Facility. While on the other hand, it does not recognize the revenue that we recognized Q4 in respect of approximately 12,000 ounces of gold that were used to partially satisfy our obligations under our prepaid forward sales as the proceeds for these ounces was received in 2016. Turning to our consolidated cost measures. Our all in sustaining costs per ounce for Q4 was $6.79, down $185 from 2018, due primarily to deliveries of low cost gold produced at ADA. For 2019, all in sustaining cost was $7.25, up $65 due primarily to lower expected gold grades and higher cash outlays for sustaining capital at Chelopech, partially offset by deliveries of low cost pool produced and out of Tempe.
At Tsumeb, Q4 cash cost per ton was $4.65. This was up $52 from 2018, due primarily to lower throughput stemming from the timing of Osmell furnace maintenance shutdown, partially offset by favorable impact of a weaker thar. For 2019, cash cost cost ton was $4.21. This was down $21 from 2018 due primarily to the favorable impact of the weak reserves partially offset by lower volumes, complex concentrate smelted. From a capital expenditure standpoint, our sustained capital expenditure for the fourth quarter in 2019 were $18,000,000 $33,700,000, respectively.
This was up $27,000,000 from 2018, reflecting costs associated with extending Chelopech's tailings management facility as well as a startup of Atatepay. Growth capital for the fourth quarter was $2,000,000, an for the year $37,000,000, down $80,000,000 from 2018 due to the completion of Atatepi, which was completed in June under budget. With the startup of Avatatepec and additional free cash flow that is generating in the fourth quarter, we are now debt free and exited the year with a net cash position of 3rd $18,000,000. As a result, at December 31, our financial position was strong with $188,000,000 of cash resources, including $165,000,000 under our long term revolving credit facility and a portfolio investment that provides additional upside comprised of a 10 point 4% interest in Sabina, a 19.5% interest in INB and a 78% interest in MineRP. From a risk perspective, we've entered into a series of hedges during 2019 to reduce CMS operating cost exposure to foreign movements.
As a result, at December 31, approximately 85% assume that's projected, 2020 operating costs have been hedged using a 0 cost option strategy that provides for a floor and ceiling for the weighted average exchange rate between 14.61 0.14. Looking forward, we will continue to focus on increasing the profitability of the business by optimizing our existing assets. As you have seen from the results we released yesterday, we initiated a 3 year outlook covering certain key metrics, which is supplemented with more detailed guidance 2020. I'll begin providing some overall highlights covering our 3 year outlook and then review key elements of our 2020 guidance. We are forecasting a strong production profile with gold production expected to grow approximately 20% in 2020, based on the midpoint of our guidance and expect to maintain this level through 2022.
Copper production in 2020 is expected to be in line with 2019, stable through 2022. All in sustaining costs are forecast to trend lower, following a slight increase in expected in 2020 that reflects normal course cost inflation and higher sustaining capital expenditures, which I'll touch on momentarily. Sales performance is expected to be strong with a record level of throughput expected in 2020. Annual throughput estimates for Suma are expected to carry due to timing of the plant maintenance shutdown, the next of which is scheduled for 2021. This result results in an expected increase in complex concentrate smelted in 2021 with 2022 expected to be in line with 2020.
Cost variation in 20212022 is due solely to volume. In terms of sustaining capital, construction on the operation of the integrated waste management facility and further investment related to extending the life which I'll touch its tailings management facility. For 2021 2022, sustaining capital is expected to be below 2020 levels, the 2022 being representative of the longer term range Our production cost estimates for 20212022 did not yet incorporate any cost savings initiatives, operating performance improvements, potential improvements to mine grades and recoveries or variations in 3rd party processing mix Tsumeb to capitalize on the potential to realize higher margins by processing Chelopech concentrate at other facilities. In addition, cost estimates do not reflect inflation or potential offsetting variations in foreign exchange rates. We believe there is potential upside to these estimates.
In terms of our 2020 guidance, gold production is expected to be between 57,299,000 ounces, reflecting 94,000 ounces to 115,000 ounces per metatepe and the balance from Chelopech where grades are expected to be in line with life of mine grade levels. Payful Gold sold is expected to be $229,000 to $267,000, of which $34,000 will be used to fully satisfy our delivery obligation under the prepaid forward gold sales arrangement we entered in 2016. Copper production is expected to be between $35,000,000 $40,000,000 payable copper in the sold is expected to be between £33,000,000 $38,000,000. Assuming we expect record production with throughput 23,265,000 tons, reflecting uninterrupted production with the next planned Osmo furnace maintenance maintenance shutdown scheduled for 20 1. From a cost perspective, our all in sustaining cost per ounce of gold sold is expected to be $780,000,000 to $700,000,000 to 7 compared to $7.25 in 2019.
This is due primarily to the impact of lower grades at Chelopech higher sustaining capital expenditures, partially offset by an increase in lower cost ounces stemming from a full year of operations at Atapepay. Cash cost per tonne conquest concentrates melted is expected to be between $3.70 $4.50 This compares with $4.21 in 2019 due primarily to higher forecast volume and a weak result. On the capital front, sustaining capital expenditures for 2020 are expected to be between $43,000,000 $54,000,000. This is up from $37,000,000 20 19. This increase is primarily due to an increase in spending in Chelopech related to the tailings management facility, increased spending at Atapay related to its integrated waste management facility and several corporate system related initiatives.
Growth expenditures for 2020 are expected to range between $5,000,000,000 $10,000,000,000. This is down from $37,000,000 in 20 18 due primarily to the completion of the Adapting line. These growth capital expenditures related primarily to resource development and margin improvement initiatives. Expiration expenditures for 2020 are expected to be between $13,050,000,000,000, up $11,000,000,000 or up from $11,000,000 in 20.19. And will focus on drill programs, online concessions and exploration licenses at Chelopech, Atatepay, and the Timok Gold Project of Serbia.
The remaining exploration budget will be deployed primarily to other Greenfield projects in Bulgaria, Serbia, a home market project in Quebec. Valuation expenditures for 2020 are expected to be between $2,000,000 $8,000,000 and relate to potential costs associated with moving forward with the feasibility study on Tiedmont Focal Care, which subject to the results of geotechnical optimization we're currently underway, is expected to be initiated in the first half of twenty twenty. While we have not provided any guidance keeping record performance in the second half of twenty nineteen. And with the growing pipeline of potential new customers, we remain confident in the growth of and value proposition that offers the mining industry and DPM. As Rick mentioned, we announced the introduction of a regular dividend with declaration of our inaugural dividend of $0.02 per share.
The introduction of this dividend reflects our outlook for significant free cash flow generation, Our commitment to providing shareholders with the cash return and our desire to reinvest in growing and optimizing the business all of which is consistent with our capital allocation framework and our objective to deliver value to our shareholders. The level of this dividend reflects our intention to establish dividend that can be sustained over time and is based on our free cash flow outlook. As a result, this has the potential to grow and are resupplemented from time time at the discretion of the board. We have also initiated a normal Morse issuer bid to purchase up to 9,000,000 shares on the TSX is subject to acceptance by the TSX. And as accepted, any purchases thereafter will be made in accordance with applicable rules and policy of the TSX.
And applicable securities law. In closing, we are in solid financial shape. With significant free cash flow generation underway, we are committed to attaining a disciplined approach to capital allocation and are in a great position to further build our financial strength to prudently invest excess cash and high return growth duties or possibly in DPM shares under our normal course issuer bid and to return a portion of our free cash flow generation to our shareholders by way of the dividend we announced yesterday. With this context, we firmly believe notwithstanding the strong share price appreciation that we've seen in recent years. That DPM continues to represent an attractive investment opportunity for gold investors.
With that, I'll turn the call back over to the operator for Q And A. Thank
you. And our first question comes the line of Trevor Turnbull with Scotiabank.
Was just looking at the
3 year guidance and I noticed that Atatepi looks like it has a pretty good bump in 2022. At least relative to what I think had been in the original tech report. And I just wondered if you could put a little color around that and does that change anything in terms of the life of mine output? Have you actually added ounces or encountered more ounces than you expected or is this just a slight timing difference?
Hi, Trevor. This is David. So there's no change from the profile in the years of operation. So it may just be down to the newness of when we started. So, there's really nothing that's changed in terms of our understanding of the ore bodies and number of ounces.
The expectation in treatment and so on.
All right. Yes, I'll have to go back and look. Maybe we just had our numbers off a bit. And then I guess, David, the other question I had it was touched on a couple of times about the complex concentrate market conditions. And I just wondered if you could give us a bit of background on that and maybe a bit of comfort as we think about how those might improve, not over the next 3 years, but over the longer term.
Are is there any concern over the complex concentrate market failing to become more robust as we think of Tsumeb as a long term long lived asset?
Yes, that's a good question. Okay. So the way I would view things at the moment, if you have a look at in the copper market. There's some projects that were expected to come in, let's say, 2017, 2018, 2019. And so what's happening is those have been delight waiting for some clarity on demand.
And producers have been exercising a degree of discipline that I don't necessarily think was very historic. So the outcome of that has been that the smelters are at this point over capacity problem. What that means is that the TC becomes something that is more competitive and of course, those prices will decline from a producer point of view. And this opens the opportunity for us in the sense that there's more people interested taking our concentrates. But it also means that it puts pressure on the Tsumeb.
And we've seen this slippage in the TCs that it can attract. However, I do believe that it's part of the normal cycle. And what we are seeing is some odd incidents that occur in the market, where either smelters that are taking concentrator effective or if an operator has an issue and suddenly has more RTP concentrate than expected. That's been sending some signals, which I would suggest that our incline group at the bottom that that cycle and likely to see things returning to a more normal situation. An example of that the fact that one of our major suppliers wanted to move to a 3 year contract.
In a situation where additional materials have been coming to market and there was smelter difficulty in treating some of that concentrate. And I'm not talking about our small tumor, okay? So I do believe that you're going to still be seeing the concentrates that we'd originally by coming to market. We know there are some players that have fallen out of a potential supplier position, but others still have expansion around planned in place. So I do believe that what we're seeing now in terms of the smelter is at a lease date, an even point in terms of the supply concentrates going forward.
So it's not that the impairment was a reflection of a lack of ability to find concentrators. That we have an ability to divert rather than require the increasing capacity.
Thank you. And our next question comes from the line of Don DeMarco with National Bank. Your line is open.
Thank you for taking my call. I just wanted to follow-up on, the answer to the last question. And in terms of looking at Tsumeb, the implied revenue per ton. Should we model for 2020 a continuation of what was reported in Q4 then?
My, yes, I wouldn't say necessarily probably the year is a better reflection of what you would expect to see, like, from a third party pulling perspective, I would expect pull rates for 2020 to be in line with 2019. And then as it relates the Chelopech material that goes to site, it probably will be down a little bit in 2020 relative to 2019 because the Chelopech concentrates contract is a cost plus arrangement, and in 2019, because we had additional down days. It was like 24 days of additional downtime associated with pressurization event. That actually resulted in a higher toll rate to Chelopech. So in 2020, we should actually see that come down.
And frankly, that's where most of the variability occurs in any particular quarter It's really around the downtime because it causes the Chelopech pole arrangement to jump up for a period of time. Or approximately 3 months essentially, 3 or 4 months depending on the length of any outage.
Okay. So you expect that that implied revenue per ton in Q4 would be a low watermark then versus what you're expecting in 2020?
Say that again?
Do you expect that that like when I see the total revenue in Q4 was $20,900,000 and that was concentrates melted about 48,600 tons. So the implied revenue per ton, do you think that that's a low watermark then in in Q4 going forward? That's what I'm hearing you say.
Yes, Melanie, sorry, the other thing. So, I talked about the variability of the toll rate between 3rd party and Chelopech. The other thing that did negatively impact the, the NEM revenue on a per ton basis in Tsumeb 4Q4 was higher, that was exposure. And I did comment on that, in my earlier comments, And so we did have an increased level of no exposure in Q4, which we would expect to reverse in Q1 really related to the buildup of secondaries that occurred, that was related to the, outage and other things that we were doing site. And the nature of that material is such that it's very difficult to estimate the metal content and our processes are such that we tend to underestimate the metal content in that secondary material that gave rise to the exposure when it's processed in Q1, we would expect most of that to come back to the metal recovery.
Okay. Okay, thanks. That's all for me. So congratulations on the outlook for 2020, the impressive cost performance at Attatepec and the dividend policy. Thanks so much.
Thank you.
Thank you. Our next question comes from Steven Sarokey with Equinox. Your line is open.
Hey, gentlemen. I have two questions for you. The first is working out the dividend, it works at about $11,000,000. I thought that it would be bigger than that, but what's the price increase in that dividend? The second thing is you also announced an NCIB for $9,000,000.
You didn't use it last year. Do you plan on using it this year?
Okay, Steven. Sorry, you were breaking up a little bit, but I think I understood, your first question. So the first question, I would answer, that there really isn't a big set target that we have, formally, put out as being a basis for the dividend. Our intent was strictly to established what we believe is a dividend level that can be sustained over a long period of time, the $0.04 or sorry, the $0.08 that we put out is the level that we're quite comfortable with. And then based on our outlook, And in reality, if metal prices continue at these levels, it is quite possible that we would look to increase that, that dividend over time or alternatively consider supplementing it, you know, depending upon our outlook and where metal prices stand, what are position might be at any given point in time.
So I don't really want to be in a position that we're indicating to market that we're specifically targeting a percentage of free cash flow. It's derived from free cash flow, but it's not there's no set percentage, per se. That the board has approved nor is communicating as part of policy. The NCIB is something that we've had in the past. It's something that, last year when we wanted to reinstitute it.
I wouldn't say that there's any, formal commitment on our part at this point to say that we will go out and start to buy back 9,000,000 shares, but it is something that we would like to have in our toolbox. And from time to time, when appropriate, we would expect to use that, program, all in the context of, maintain our discipline commitment to capital allocation.
Okay. Thanks. That's it for me, really.
Thank you. And I'm not showing any further questions at this time. I would now like to turn the call back to your speakers.
Okay. Thank you very much for joining us today. Everybody have a great weekend.
Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.