Three other options for funding of possible m&a activity:When...

Three other options for funding of possible m&a activity:

1. When companies get to the scale of Allkem they usually start factoring in some debt, in part for balance and for risk profile.
2. As GCar noted Mt Cattlin in particular is a cash cow for the company, massive cash inflows with relatively little to spend.
3. And I think the main alternative option is that most investors in most of the potential prey for Allkem are likely invested on the basis that we are at the start of a lithium supercycle. They won't particularly want cash for their shares but rather they will want ongoing exposure to lithium companies (also a capital gains issue). I could imagine any m&a action that Allkem engages in will be mostly scrip based, not cash based.

In any case, were Allkem to do a cap raise I would guess that much of the scrip will go to big institutions, and, seeing the expectation is that the AKE share price would be in contango those shares being offered may not be offered at much of a discount to market.