Is Perseus Mining (PRU) stock Halal?

Perseus Mining is an Australia-based gold mining company focused on the exploration, development, and operation of gold assets across West Africa. The company operates three major mines: the Edikan Gold Mine in Ghana, and the Sissingue and Yaouré Gold Mines in Côte d’Ivoire. Perseus Mining also holds interests in advanced-stage projects such as the Nyanzaga Gold Project in Tanzania and the Meyas Sand Gold Project in Sudan. Before any of that matters to a Muslim investor, one question comes first: is Perseus Mining stock Halal?

Is Perseus Mining Shariah compliant?

For a resources company like Perseus Mining, 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 Perseus Mining pass the business activity test?

The activity screen is only part of the picture this month: Perseus 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 Perseus Mining's income Halal?

No. Perseus 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 Perseus 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 PRU 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?