Question-and-Answer Session
Operator
Thank you. [Operator Instructions] Your first question comes from Orest Wowkodaw from Scotiabank. Please go ahead.
Orest Wowkodaw - Scotiabank
Hi. Good afternoon. Andre, you mentioned that they are covenants that will come into force at the end of the first quarter of 2016. I assume that related to your senior credit facility, can you outline what those covenants are specifically?
Andre Deepwell - Chief Financial Officer
Okay. I would say, there are typical covenants. There is the funded debit to EBITDA ratio test which would step the total maximum amount of debt that you can have based to your EBITDA?
Orest Wowkodaw - Scotiabank
And can you give what that level is?
Andre Deepwell - Chief Financial Officer
Yes, it’s shall not be greater than 4 to 1 for the first two quarters of 2016 and dropping the 3.5 to 1 thereafter. And funded debt excludes certain permitted sub debt and so on so it’s not total debt shown on our financials.
Orest Wowkodaw - Scotiabank
Okay.
Andre Deepwell - Chief Financial Officer
Second covenant is the fixed charge cover ratio and that’s EBITDA to interest expense and that should be not less than 1.25 to 1 for the first two quarter of 2016 and thereafter 1.5 to 1.
Orest Wowkodaw - Scotiabank
All right. Thank you very much.
Operator
Thank you next question comes from Derek MacPherson from M Partners. Please go ahead.
Derek MacPherson - M Partners
Good morning guys. Just a quick question on Mount Polley, obviously with blending from the pit and from the barizone [ph] what kind of copper grades you guys expecting there, sort of in over the first few quarter sort of in over the first few quarters and over this first year with the slow total ramp up.
Brian Kynoch - President
Okay and it will be significant amount of goal. I don’t have the numbers in front we’ll get pretty good grade because we are blending that underground ore.
Derek MacPherson - M Partners
Okay.
Brian Kynoch - President
More than we were getting before we closed, because the underground ore is going is going to be a bigger percentage of it.
Derek MacPherson - M Partners
And that sort of about 2,000 tons a day underground give or take?
Brian Kynoch - President
Yes, between one and two. I think over the period we want to try to mine 400,000 tons over the year.
Derek MacPherson - M Partners
Okay. And I guess, it was sort of about 10% of the total production. Okay. Now, obviously you had some of that working place with the boundary zone. What kind of capital you guys have ahead of you to sort of get the mine up and running, again to that sort of that happened both...
Andre Deepwell - Chief Financial Officer
The biggest thing, the underground mine was virtually fully developed for the tonnage that I mentioned to you. The underground mine is ready to mined. So not very much capital costs there, and probably that biggest capital costs besides working capital requirement because it’s going to take us a longer to make our ship going half time, is that we had to run a tailings line from the mill to Springer pit. So that involved not only getting the line in but actually excavating a ramp that distance that was at the right slope to get it to run by gravity.
So that was probably the single biggest expense, which – anyway that is what’s said to be when the mill ran is when we got the line in. And then, probably the next biggest expenses, you can imagine now there is kind of pipes and pipelines kind of going every which way up there now, so the water management piping was probably the other, the second biggest expense.
Other than that, I would say this, well anyway, you can see in the first week we basically did 20,000 tons a day right off the bat, so the restart of the mill went very well.
Derek MacPherson - M Partners
But you mentioned that you guys are having one week on and one week off, so that sort of 20,000 tons a day for one week, equates about 10,000 tons a day going sort of rough we took it.
Brian Kynoch - President
Rather than run the mill at half speed, we’re going to run at a full speed and run it half the time.
Derek MacPherson - M Partners
Perfect.
Brian Kynoch - President
That might get to be an issue in the winter times, so we might revise that schedule once it starts to freeze.
Derek MacPherson - M Partners
Okay. So I mean obviously guys you sense capital already, how much do you think is left there?
Brian Kynoch - President
The capital of Mount Polley.
Derek MacPherson - M Partners
Yes.
Brian Kynoch - President
Well the capital of Mount Polley is the next big I would say to you is, we need to find a way to restart the mine on a full scale, which means get our new tailings facility or a re-permit our own tailing facility and probably a lot of the cost we’ve been incurring now and it will be some more cost to there. We’ll be to rebuild the tailings facility up to a standard that meets all of the criteria now given all the exploration work that GLU we’ve done.
Derek MacPherson - M Partners
Right.
Brian Kynoch - President
Okay. The rest of it as I said the plant, it just started up and we have the mining gear there, so it’s really the capital will be around storing tailings.
Derek MacPherson - M Partners
Okay. And I guess that’s still – that capital number still two chairman because you still have some – there’s still some work to do and figure out what that long term solution is?
Brian Kynoch - President
Yes. We need to get at permit for the longer term solution but I would say. But I would say, we’ve actually been spending quite a bit, bringing our current dam up to a safety factor of 1.5t to 1.
Derek MacPherson - M Partners
Okay. And then on – and then just shifting gears over to Red Chris and then just on the copper grades there, obviously you guys been to mine a little copper grade to start. How long you’d think that you‘re going to be to do that for?
Brian Kynoch - President
I think for sure couple of years we should be able to get – we should be able to keep grades similar to what they are now.
Derek MacPherson - M Partners
Okay.
Brian Kynoch - President
And right now we’re mining in combination; we have the main zone and east zone developed. And our target is to try to keep the graded around half a percent and we do that by blending East zone in ore, I think today we’re dong one party zone to four parts main zone.
Derek MacPherson - M Partners
Okay. That’s it from me guys. Thank.
Operator
Thank you, your next question comes from Gary Lampard from Canaccord. Please go ahead.
Gary Lampard - Canaccord
Hi, good morning everyone. My question is related to the debt-to-EBITDA question that I was asked a while ago. You said that not all of the debt was included in it, only the funded debt, can you list which parts of the debt will actually count for that covenant test?
Andre Deepwell - Chief Financial Officer
Yes, so the parts that do not counter the junior credit facility, which is $75 million principle amount and the 2014 convertible debentures.
Brian Kynoch - President
Okay. The equipment lines, do they count as part of that?
Andre Deepwell - Chief Financial Officer
They do.
Gary Lampard - Canaccord
And then nothing is secured notes, the revolver in the second lien they all count.
Andre Deepwell - Chief Financial Officer
Correct.
Gary Lampard - Canaccord
Okay. And kind of the obvious one, but the EBITDA I guess that’s a 12 months trailing from the diet that a test is taken.
Brian Kynoch - President
Well, it actually because it starts, the test starts as of January 1, so it’s a one quarter test for the first quarter then it’s a two quarter test, then a three quarter, then a four quarter and then after that it’s an annual 12 months of rolling test?
Gary Lampard - Canaccord
Okay. Got it. And finally can you just remind us of what the completion tests that’s still remain are on Red Chris.
Brian Kynoch - President
The biggest one is do to get this up to our design tonnage.
Gary Lampard - Canaccord
Okay. Since that’s really the only major hurdle that still remains.
Brian Kynoch - President
There’s a number, but that’s the key one where we’re trying to get up to 30,000 tons a day on average for I think 60 days.
Gary Lampard - Canaccord
Okay. All right, that’s all from me. Thanks very much.
Operator
Thank you. Your next question comes from Craig Hutchison from TD Securities. Please go ahead.
Craig Hutchison - TD Securities
Good morning. My question is regards to CapEx, I know you guys spent about 40 million in the quarter, but the actual amount that was the cash amount on the balance sheet here is $15 million or 16 million. Should we expect a reversal and bump up next quarter, so the amount that they maybe not going to spend this quarter?
Brian Kynoch - President
Are you referring to specifically Red Chris or…?
Craig Hutchison - TD Securities
Well, I guess the [Indiscernible] as you spend $40 million, if you look at the actual cash used in investment activity it’s only 15?
Brian Kynoch - President
Okay. Let me see which page you’re looking at. Well, in terms on the MD&A on page – we have the additions, we have a total of – that includes – that total of the $40 million that you mentioned that would include the capitalized interest which does not show up on the same line as capital expenditures on this statement of cash flows, so there is $40 million difference or not difference, but a lower number.
Yes, on page 18 is the financial statement up slight MD&A so three months expenditures were $49 million, 31 million of that was Red Chris. It take the 13 min of interest out, so you’re at like 70 million or there abouts and the operating preproduction revenues so preproduction costs were about $4 million higher than the revenues. So excluding the preproduction and excluding the interest you end up with about $14 million or $15 million of capital that relates mostly tailings dam for the quarter
Craig Hutchison - TD Securities
And then I think Brian, you may mentioned, how is August going for Red Chris?
Brian Kynoch - President
We’re doing well. So far this month we’re averaging 28 – over 28,000 tons a day and we’re on target to make over 7 million pounds of copper as well.
Craig Hutchison - TD Securities
It’s okay.
Brian Kynoch - President
We’re running so far this month we’ve been running 96% of the time.
Craig Hutchison - TD Securities
96% okay. And there’s my last, just on Huckleberry. I know the costs were still quite high about $2.20 a pound, are you going to get into refresh to the higher grade ore anytime this year or is that?
Brian Kynoch - President
We’re starting – as I said the grades were up a little bit. I think the one thing you will note in our discussion in the quarter is that we are looking at trying to revise the mine plans for Huckleberry given the current copper prices. So the guys are working on an update to kind of maximize what we can do in the next couple of years.
Craig Hutchison - TD Securities
Okay. Great. Thanks.
Operator
Thank you. Your next question comes from Orest from Scotiabank. Please go ahead.
Orest Wowkodaw - Scotiabank
Hi. Thanks for taking my follow-up. Just getting back to Mount Polley, I’m just curious, under sort of your current resumption of operations there, how much tailings capacity do you have, I guess in using the pit for tailings in terms of either months or years based on this sort of running it half rate. And also just curious what you thing might do to operating costs say on a per pound basis running it half operating rates? Thanks.
Brian Kynoch - President
We did have more capacity of the store tailings but the real thing there is we planned about 4 million tons of tailings in and real limiting factor is that where we’re storing water right now as well. So that’s why I mentioned the key factor is that we need to get short term and long term water discharged permits. So as quickly as we – so right now the 4 million tons is set because that as much tailings as we can store it and maintain the room we need to store the water we expect to have to store until we get our discharge permits.
And I think the second thing is that we want to put the least amount of tailings we can in that pit because that is where the majority of the next seven or eight years ore come from is down beneath, is deepening the Springer Pit, so that 4 million tons has really been set as the limit we can put in and still maintain free board in these Springer pit next spring runoff.
Orest Wowkodaw - Scotiabank
So, how long can you maintain kind of the current plan without our permanent tailing facility?
Brian Kynoch - President
It’s for 4 million tons of storage. So that will last us about a year and half throughput.
Orest Wowkodaw - Scotiabank
Okay. A year and half throughput.
Brian Kynoch - President
We are pushing hard as we can to get permits to open up to get a permanent tailing solution, put the lease amount of tailings we can in that pit.
Orest Wowkodaw - Scotiabank
Okay.
Brian Kynoch - President
There’s a one day we’re going to take a back out.
Orest Wowkodaw - Scotiabank
Right. But presumably when you do get permits you’re going to need time to build the tailing facility, does that suggest that you might actually have to pause production again in the future in order to allow a new tailing facility to be constructed?
Brian Kynoch - President
We’re hopeful that we’re going to be able to repair our existing one and bring it up to the standard.
Orest Wowkodaw - Scotiabank
I see, okay. And what about operating cost running at half rate. How much of an increase do you think that, that have?
Brian Kynoch - President
Yes. It certainly an increase the operating cost, but that’s part of why the big – two things we’re doing there. We had some of the rock we use to repair the tailings facility came from Cariboo pit and so in the Cariboo pit we’ve reduced the stripping ratio of the ore that we’re going to be delivering to the plant for this temporary restart. And then given the higher percentage we can underground ore, anyway, we’re – our target is to make copper for at least we can given that we’re running at half speed by giving it higher grade and as I say reduced stripping ratio on the Cariboo pit.
Orest Wowkodaw - Scotiabank
Okay. Do you think it can generate cash flow kind of current copper pricing?
Brian Kynoch - President
Yes. It’s our plan.
Orest Wowkodaw - Scotiabank
Thanks very much.
Operator
Thank you. Your next question comes from Brett Levy from Credit Research and Trading, Please go ahead.
Brett Levy - Credit Research and Trading
Hey, guys, maybe a little bit sort of a bit of slug question, but have you guys look at the Mount Milligan asset and is there any synergy as best as you can tell with anything else you guys are on?
Brian Kynoch - President
Yes. We’re not looking at that right now and I don’t think that its locations stuff there is no obvious synergy to me with our operations in Mount Milligan.
Brett Levy - Credit Research and Trading
All right. And then, in terms like kind of I don’t know residual, I don’t know penalties or remediation cost, is there kind of another shot at rock in terms any of the tailings done first thing additional compliance you guys see kind of further down the road?
Brian Kynoch - President
Well, certainly the Ministry of Mines and conservation offers investigations, they are still ongoing, but if we look kind of at the science part of it and what we’ve done to the Creek, we think we’re well on our way to rehabilitating the impact of the tailings reach. As I said now, the water and Hazeltine Creek is running clear. We have an armored channel all way down. We’re putting the lower part of Etney Creek back by replacing old gravels and the work we’re doing there it will soon be back to being fish habitat. Anyway, there is always a possibility to some but assets looks good for what we’ve been doing so far.
Brett Levy - Credit Research and Trading
All right thanks. All the rest of my questions have been answered.
Brian Kynoch - President
Thank you.
Operator
Thank you. Your next question comes from Tom [Indiscernible]. Please go ahead.
Unidentified Analyst
Thank you for taking my question. I just want to know what your attitude is toward hedging the copper price given that we want to be protected from some type of avrent [ph] decline in the price of copper.
Brian Kynoch - President
I guess it’s – we do have some of the gold hedges helping us and the Canadian, we have the advantage of being in Canada, where when the copper price is going down it seems to be a typical reaction that our currency goes down and kind of helps us out a lot on that. So I don’t think we’re really keen on doing a lot of hedging of copper right now.
Unidentified Analyst
Okay. Thank you.
Operator
Thank you. [Operator Instructions] There are no further questions at this time. Please proceed.
Brian Kynoch - President
Okay. Thank you.
Operator
Ladies and gentlemen, this concludes your conference call today. We do thank you for participating and ask that you please disconnect your lines.
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