Here's the back story on Oak. Could be a good cash generator....

Here's the back story on Oak. Could be a good cash generator. Short mine life but possible to extend.

Round Oak is pitched as a battery metals play that recorded $183 million EBITDA in the 2021 financial year. It’s said to be highly cash generative given strong copper and zinc spot prices.

AFR Oct 28, 2021 – 10.05am
ASX-listed Washington H. Soul Pattinson and Co wants to raise $180 million to $200 million for copper spin-off Round Oak Minerals, in a deal valuing the miner at as much as $330 million.
It is understood Soul Patts and its lead managers have put the terms to potential cornerstone investors and are seeking to have the deal priced this week.

Street Talk.  Bloomberg
The mooted deal would see Round Oak valued at $270 million to $330 million on an enterprise value basis.
The bottom of the range implies about 1.5-times FY21 EBITDA. Investor education research from the three lead managers valued the company at $240 to $400 million on an enterprise value basis.
Soul Patts was also preparing to set aside some Round Oak shares for its own 56,000 investors, should they also wish to bid into the deal.
Round Oak is pitched as a battery metals play that recorded $183 million EBITDA in the 2021 financial year. It’s said to be highly cash generative given strong copper and zinc spot prices.
The company’s flagship asset is its Jaguar zinc, copper, silver and gold mine in Western Australia that was previously owned by IGO Limited. It is located within the Eastern Goldfields region, 60 kilometres north of Leonora and 250 km north of Kalgoorlie.
According to the Round Oak website, it has a current mine life of four years, but the investor presentation revealed that Soul Patts believes this can be significantly extended.
Two of its older mines, Mt Colin and Barbara, are also located in the famous copper area between the Queensland towns of Mt Isa and Cloncurry.
The company also has the Stockman project in north east Victoria, which holds three exploration leases and one mining lease, covering approximately 42 square kilometres.
Canaccord Genuity, Morgans and Bell Potter are leading the Round Oak IPO.