TSX Shariah screener · October 2026
Is Focus Graphite Inc. (FMS) Halal?
Focus Graphite Inc. · TSXV: FMS · Materials
The short answer
Focus Graphite Inc. (TSXV: FMS) is a FAIL in our October 2026 screen. The business gate passes (graphite exploration and development in Quebec, no haram lines) and the debt gate passes (zero interest-bearing debt at June 30, 2026, so 0% of its ~C$45.9M market cap — far under the ~33% ceiling). But the income gate fails: interest income of C$16,385 in the nine months ended June 30, 2026 is ~36.7% of all positive P&L income items, far over the ~5% ceiling.
Gate 1 — Business activity: PASS
Focus Graphite Inc. is an exploration-stage graphite developer in Quebec, Canada — its 100%-owned Lac Knife graphite project south of Fermont, the Manicouagan properties (Lac Tetepisca, Lac Tetepisca North, Lac Guinecourt), and silicon-enhanced spheroidized graphite development for battery anodes. Graphite mineral exploration and development is a permissible business; no alcohol, pork, gambling, conventional finance, tobacco, cannabis or weapons lines (graphite is a raw material, not a weapons business). Gate 1 passes. Facts only.
Gate 2 — Debt and cash: PASS
At June 30, 2026, the company had zero interest-bearing debt — no long-term debt, bank debt, notes, convertible debentures, or lease liabilities (the C$835,000 owed to related parties is explicitly stated as unsecured, non-interest-bearing and due on demand; payables and flow-through provisions are likewise non-interest-bearing). With C$0 of debt, the debt-to-market-cap ratio is 0% against a ~C$45.9M market cap (110,641,731 shares x C$0.415, September 30, 2026) — far under the ~33% ceiling. Gate 2 passes. Facts only.
Gate 3 — Non-compliant income: FAIL
For the nine months ended June 30, 2026, interest income (earned on cash in bank accounts) was C$16,385. As a pre-revenue explorer, the company's only other positive P&L income item was C$28,243 of other income related to flow-through shares (a non-cash reversal) — total positive income C$44,628. Interest income is about 36.7% of that total — far over the ~5% ceiling. Gate 3 fails. Facts only.
Key figures used
- Zero interest-bearing debt at Jun 30, 2026 ≈ 0% of ~C$45.9M market cap (110,641,731 shares x C$0.415, Sep 30, 2026).
- Gate 3 FAIL: interest income C$16,385 ≈ 36.7% of C$44,628 in positive P&L income items (9 months ended Jun 30, 2026) - pre-revenue explorer, no property revenue.
- C$835,000 due to related parties is explicitly non-interest-bearing (excluded from debt).
- C$2.0M secured CIBC revolving facility established Sep 14, 2026 (undrawn as of Oct 1, 2026); even fully drawn, ~4.4% of market cap - still under the 33% ceiling.
- Lac Knife graphite project (Quebec); developing silicon-enhanced spheroidized graphite for battery anodes.
- Going-concern warning and TSXV working-capital non-compliance disclosed (Note 13) - a financial-risk flag, not a Shariah gate.
- No Zoya, Musaffa, or ShariaPortfolio coverage found for FMS.
Frequently asked questions
Is Focus Graphite (FMS) halal?
Our October 2026 screen gives Focus Graphite (FMS) a FAIL. The business gate passes (pure graphite exploration and development) and the debt gate passes (zero interest-bearing debt at June 30, 2026). But the income gate fails: interest income of C$16,385 is ~36.7% of the C$44,628 in positive P&L income items for the nine months ended June 30, 2026 - far over the ~5% ceiling. No Zoya, Musaffa, or ShariaPortfolio coverage was found.
Why did Focus Graphite fail the income gate?
The nine months ended June 30, 2026 is the most recent filed interim period (Q3 2026 statements filed August 31, 2026). Focus is a pre-revenue explorer, so its positive P&L income items were only interest income of C$16,385 (interest earned on cash in bank accounts) and C$28,243 of other income related to flow-through shares (a non-cash reversal) - totalling C$44,628. Interest income of C$16,385 divided by C$44,628 is ~36.7% - more than seven times the site's ~5% ceiling. Pre-revenue companies have thin income denominators, so any interest income dominates. Gate 3 fails.
What does Focus Graphite do?
Focus Graphite Inc. is an exploration-stage graphite developer in Quebec, Canada. Its 100%-owned Lac Knife graphite project sits south of Fermont, Quebec, alongside the Manicouagan properties (Lac Tetepisca, Lac Tetepisca North, Lac Guinecourt). It is developing silicon-enhanced spheroidized graphite for battery anodes, and holds a 6.7% equity stake in Grafoid Inc., a privately held graphene R&D company. It filed its Q3 2026 interim statements in August 2026 and continues field programs, including a September 2026 program at Lac Knife. Graphite mineral exploration and development is a permissible business.
Do Zoya, Musaffa, or ShariaPortfolio cover Focus Graphite?
No. Web searches surfaced no Zoya rating page, no Musaffa stock page, and no ShariaPortfolio ticker coverage for Focus Graphite (FMS) - ShariaPortfolio covers a different graphite company (GrafTech EAF). We report third-party ratings honestly: for this stock, none of the three services cover it.
Where can I find more materials stock screeners?
See our full list of stock screeners at halal-stock-verdicts.html, which covers every company screened so far.
Sources
- Q3 2026 interim financial statements (3 & 9 months ended Jun 30, 2026; filed Aug 31, 2026)
- Stockwatch live quote - FMS last C$0.415, last trade Sep 30 (viewed Oct 1, 2026)
- Stockwatch news - Focus arranges $2M revolving line of credit (Sep 14, 2026); 110,641,731 shares issued
- Stockopedia - FMS profile, listing details, market cap
- C$2.0M CIBC revolving facility release (Sep 14, 2026)
Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.