Is Ivanhoe Mines (IVN) stock Halal?

Ivanhoe Mines is a mineral exploration and development company primarily focusing on the mining industry. The company's principal goal is to explore, develop, and operate its major mining ventures, concentrating mainly on copper, zinc, and platinum group metals. Ivanhoe Mines plays a significant role in the mining sector with its substantial activities in Africa, where it operates some of the world's largest and highest-grade copper projects. Before any of that matters to a Muslim investor, one question comes first: is Ivanhoe Mines stock Halal?

Is Ivanhoe Mines Shariah compliant?

For a resources company like Ivanhoe Mines, AAOIFI Shariah Standard No. 21 has little quarrel with the product; the scrutiny falls on the financing. Heavy machinery and long project cycles are usually funded with debt, and the standard tolerates interest bearing borrowing only below 30% of market capitalisation.

Does Ivanhoe Mines pass the business activity test?

The activity screen is only part of the picture this month: Ivanhoe Mines 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 Ivanhoe Mines' income Halal?

No. Ivanhoe Mines' 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 Ivanhoe Mines 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 IVN 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?