Mercury rising as poor policy meets big business grit

By Megan Graham. Published at Sep 11, 2018, in The Green Keeper

It’s been another interesting week in the world of ASX green energy plays and the country’s green energy plans for the future — or lack thereof.

Minister for Resources, Matt Canavan came out at the end of last week saying that Australia can continue to build new coal plants as the Paris Climate Agreement commitments were ‘non-binding’, referring to it as a three-page document that allows for flexibility. He added that rather than focusing on the situation in 2030, “what I want to focus on is solving the crisis we have in energy today”.

Funny, that sounds exactly like the kind of short-sighted rhetoric from 10, 20 or 30 years ago that got us into the dire anthropomorphic CO2 mess we are now in. Meanwhile, new PM Scott Morrison’s proactive approach to the drought facing 100% of NSW is to ask that people ‘pray for rain’.

I don’t think this plan has particularly impressed the many farmers calling for immediate action on climate change, as drought and other extreme weather issues continue to threaten their livelihoods. One such farmer directed the following at politicians via The Guardian yesterday: “Get your heads out of the coalpit and back into the real world. We need meaningful action now”.

While the political kerfuffle around climate policy drags on, certain groups in Australia are now looking to ‘go it alone’ in the fight against climate change, particularly after the Liberal party’s foiled National Energy Guarantee — which was so divisive it prompted the beginning of the end of Turnbull’s prime ministership.

Just days after the leadership spill, representatives from at least 20 industry organisations, environmental and social welfare groups, and academics held a meeting (in person and via conference call) convened by the Australian Industry Group. The meeting was intended to discuss how to move forward without the help of any meaningful government policy on the issue.

This question is hugely important for companies, particularly small caps, operating in the green energy space.

Promisingly, state Labour governments in Queensland, Victoria and the ACT have already committed to go it alone and pursue their respective ambitious renewable energy targets.

Perhaps they can follow in the footsteps of California. Former Governor (and well-known Republican) Arnold Schwarzenegger famously signed a landmark bill in 2006 aimed at reducing economy-wide emissions from multiple sources — at the same time, George W was taking little or no action on climate change. The law required companies to have cleaner cars, energy-efficient buildings and alternative fuels.

Nowadays, California is well and truly leading the way. Earlier this month the State Legislature approved a bill mandating that by 2045 all of the state’s electricity will come from renewable and zero carbon sources like wind, solar, hydropower and nuclear. It involves a 60% renewables target by 2030.

Not long after, the Global Climate Action Summit happened in San Francisco, co-hosted by California’s Governor and the former New York Mayor, Michael Bloomberg (the eighth richest person in the US just quietly!). Of course, Bloomberg is also the founder, CEO and owner of global financial services giant, Bloomberg LP.

The point is — whether the US government or the Australian government are committed to taking action could become less relevant as we see companies, industry bodies and everyday people step up and decide to act.

On that note, this week I take a look at one busy little bee of a stock (that’s right, see below...) operating in the green energy space. Apparently running the colour spectrum, this dual-listed NZ company is not only green, it’s also an alarming shade of yellow — and it’s giving renewables a red hot go?

Mercury rising for MCY shares — not the planet

Mercury shares have been rising

The $4.2 billion dual-listed energy play, Mercury NZ Limited (ASX:MCY | NZX:MCY), generates 100% of its power from renewable sources — hydro and geothermal — which is pretty impressive. It sells its electricity through several retail brands like GLOBUG, Tiny Mighty and Bosco.

Not only has the green power play re-branded to look extra young and colourful, it also has an experienced Chair at the helm in Joan Withers, former CEO of Fairfax New Zealand.

Over the past five years the company’s share price is up some ~70%:

The company has performed admirably over the past 5 years.

The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

What’s winning MCY some lime-green-light lately is its surprise takeover of Tilt Renewables (ASX:TLT), a growing Australian and NZ wind power producer, in a joint move with Infratil.

Both MCY and Infratil (ASX:IFT) have been major shareholders of TLT (since listing on the ASX in February at $2.00, TLT’s share price dipped to a low of ~$1.70 but is now up 22% over the last six months) and between them own ~71% of the company. Now they’re teaming up to offer NZ$208.5 million to pick up the remaining shares.

Mid-last week, the JV announced the Offer was now fully unconditional (scheduled to close on 15 October).

Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!