TSX Shariah screener · October 2026
Is Frontier Lithium Inc. (FL) Halal?
Frontier Lithium Inc. · TSXV: FL · Materials
The short answer
No — Frontier Lithium (FL) fails this Shariah stock screen. Its PAK lithium project exploration and development business is permissible and its debt is modest (~3.1% of market cap) — but interest income of C$67K in the quarter ended June 30, 2026, against nil revenue, is the company's only income, breaching the 5% non-compliant income limit. No Zoya, Musaffa, or ShariaPortfolio rating was found for this ticker — honestly reported as absent, not invented.
Gate 1 — Business activity: PASS
Frontier Lithium Inc. (TSX-V:FL) is a lithium exploration and development company focused on the PAK Lithium Project in northwestern Ontario (the 'Electric Avenue' district). The company has no production and is pre-revenue — its MD&A quarterly table shows revenue of $Nil for the quarters ended June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 2025. No alcohol, pork, gambling, conventional interest-based lending, tobacco, cannabis, weapons, or adult-entertainment lines were disclosed. Gate 1 passes. Facts only.
Gate 2 — Debt and cash: PASS
The company carries an unsecured convertible loan of C$3.35M (maturity extended to February 25, 2028, per the August 13, 2026 news release) plus small lease liabilities — total interest-bearing debt of about C$3.4M (a PitchBook total-debt figure of US$3,987K at March 31, 2026, roughly C$5.7M, is an upper bound). Against a market capitalization of roughly C$107.7 million (250,567,041 shares at C$0.43, October 1, 2026), debt ÷ market cap ≈ 3.1% (≈5.3% on the upper bound), well under the ~33% ceiling. Gate 2 passes. Facts only.
Gate 3 — Non-compliant income: FAIL
For the three months ended June 30, 2026, the interim financial statements and MD&A report a separate interest-income line of C$67 thousand, while revenue was $Nil. Interest is effectively 100% of the company's income, far above the 5% non-compliant income limit. Gate 3 fails. Facts only.
Key figures used
- Interest-bearing debt: unsecured convertible loan C$3.35M (maturity extended to Feb 25, 2028) + small lease liabilities ≈ C$3.4M
- Market cap: ~C$107.7M (250,567,041 shares × C$0.43, Oct 1, 2026); debt ÷ market cap ≈ 3.1% (~5.3% on the PitchBook US$3,987K upper bound)
- Cash & equivalents: C$20.9M (Jun 30, 2026) ≈ 19.4% of market cap
- Q1 FY2027 (3 months ended Jun 30, 2026): revenue $Nil; interest income C$67K — the company's only income
- Listed: TSX-Venture (FL.V); also OTCQB (LITOF), Frankfurt (HL2)
- Material: PAK Lithium Project, northwestern Ontario ('Electric Avenue' district)
Frequently asked questions
Is Frontier Lithium (FL) halal?
No. Frontier Lithium fails this Shariah stock screen. Its lithium exploration and development business is permissible — the PAK Lithium Project in northwestern Ontario — and its debt is modest, but interest income of C$67K in the quarter ended June 30, 2026 was the company's only income (nil revenue), far above the 5% limit for non-compliant income. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.
What is Frontier Lithium's debt-to-market-cap ratio?
About 3.1%. The company carries an unsecured convertible loan of C$3.35M (maturity extended to February 25, 2028) plus small lease liabilities — about C$3.4M total (a PitchBook total-debt figure of US$3,987K at March 31, 2026, roughly C$5.7M, is an upper bound) — against a market cap of roughly C$107.7 million (250,567,041 shares at C$0.43, October 1, 2026), well under the ~33% ceiling.
What does Frontier Lithium do?
Frontier Lithium Inc. (TSX-V:FL) is a lithium exploration and development company focused on the PAK Lithium Project in northwestern Ontario (the 'Electric Avenue' district). It has no production and is pre-revenue — its MD&A quarterly table shows revenue of $Nil for the four quarters ended June 30, 2026.
How much interest income does Frontier Lithium earn relative to revenue?
For the three months ended June 30, 2026, the interim financial statements and MD&A report a separate interest-income line of C$67 thousand, while revenue was $Nil. Interest is effectively 100% of the company's income, far above the 5% ceiling.
Where can I find more materials stock screeners?
See halal-stock-verdicts.html for the full list of stock screeners, including the other materials-sector entries.
Sources
- Frontier Lithium — interim FS, 3 months ended Jun 30, 2026 (C$67K interest income; $Nil revenue)
- Frontier Lithium — interim MD&A, 3 months ended Jun 30, 2026 (nil revenue quarterly table; C$3.35M convertible loan)
- Frontier Lithium — Q1 FY2027 results news release (Aug 26, 2026)
- Finnhub — CVE:FL quote (C$0.43, Oct 1, 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.