Is Sibanye Stillwater (SBSW) stock Halal?

Sibanye Stillwater represents shares in Sibanye Stillwater a prominent multinational precious metals mining company. Renowned for its diversified portfolio, the company specializes in the mining of platinum group metals (PGMs) and gold. Its primary operations are based in South Africa, with significant assets in the United States, particularly in Montana's Stillwater and East Boulder mining complexes. Before any of that matters to a Muslim investor, one question comes first: is Sibanye Stillwater stock Halal?

Is Sibanye Stillwater Shariah compliant?

For a resources company like Sibanye Stillwater, 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 Sibanye Stillwater pass the business activity test?

The activity screen is only part of the picture this month: Sibanye Stillwater currently fails the non-permissible income and interest-bearing debt screens, 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 Sibanye Stillwater's income Halal?

No. Sibanye Stillwater'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 Sibanye Stillwater meet AAOIFI's debt and investment ratio requirements?

Not in full. Interest bearing debt currently exceeds the 30% cap, while the other ratio stays within it. One breach is enough to fail the screening; the ratios are reassessed monthly under our Shariah Supervisory Board.

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?