Is Harmony Gold Mining (HMY) stock Halal?

Harmony Gold Mining represents ownership in Harmony Gold Mining Company Limited, a major gold mining and exploration enterprise. The company is headquartered in Randfontein, South Africa, and operates extensive mining projects in both South Africa and Papua New Guinea. Its business primarily involves the exploration, extraction, and processing of gold, positioning it as a significant player in the global precious metals sector. For Muslim investors, though, the most pressing question is simpler: is Harmony Gold Mining a Halal investment?

Is Harmony Gold Mining Shariah compliant?

Extracting and selling oil, gas or materials is a permissible business, so companies like Harmony Gold Mining rarely stumble on the activity screen. The pressure point is capital structure: energy is a capital hungry industry that borrows heavily, and AAOIFI Shariah Standard No. 21 caps interest bearing debt at 30% of market capitalisation, a line that moves as commodity cycles move the share price.

Does Harmony Gold Mining pass the business activity test?

The activity screen is only part of the picture this month: Harmony Gold Mining currently fails the non-permissible income screen, so the overall verdict is not compliant regardless of the business itself. The activity itself, extracting and selling resources, raises no Shariah objection; the scrutiny belongs to the financing.

Is Harmony Gold Mining's income Halal?

No. Harmony Gold Mining's income from impermissible sources currently exceeds AAOIFI's 5% revenue ceiling, which makes the stock non-compliant on this screen regardless of the others. The screen is reassessed monthly, so the status can change when new financial statements arrive.

Does Harmony Gold Mining meet AAOIFI's debt and investment ratio requirements?

Yes. Both caps hold this month: interest bearing investments and interest bearing debt each stay below 30% of market capitalisation. Because the caps move with the share price, our Shariah Supervisory Board has HMY re-screened every month, and the result above always shows the latest verdict.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the four screens? Read AAOIFI Standards Explained: What Makes a Stock Halal?