Canadian Halal Investor.

TSX Shariah screener · October 2026

Is NextSource Materials Inc. (NEXT) Halal?

FAIL

NextSource Materials Inc. · TSX: NEXT · Materials

The short answer

NextSource Materials Inc. (TSX: NEXT) is a FAIL in our October 2026 screen. The debt gate fails: interest-bearing debt of ~US$41.6M (≈C$59.2M) at March 31, 2026 is about 91% of its ~C$65.1M market cap, far above the ~33% ceiling. The income gate also fails: finance income of US$85,908 is ~12.4% of US$694,289 nine-month revenue, above the ~5% ceiling. The business gate passes (graphite mining and battery materials — Molo mine, Madagascar).

Gate 1 — Business activity: PASS

NextSource is a battery-materials company: it owns and operates the Molo graphite mine in Madagascar (Phase 1 in production, 17,000 tpa nameplate) and is developing a Battery Anode Facility in Abu Dhabi (Phase 1: 14,000 tpa, targeted H2 2027). On September 28, 2026 it announced a binding US$30M subscription by Hanwa Co. and JOGMEC for 15% of the anode-facility project company. No alcohol, pork, gambling, conventional finance, tobacco, cannabis or weapons lines. Facts only.

Gate 2 — Debt and cash: FAIL

Interest-bearing debt was US$41.6M at March 31, 2026 (borrowings US$32.69M + lease obligations US$8.91M), per the Q3 FY2026 interim financial statements (nine months ended March 31, 2026; fiscal year ends June 30 — the latest filed statements retrievable). That is approximately C$59.2M at USD/CAD 1.42335 (xe.com, Sep 30, 2026) vs a market cap of ~C$65.08M (Finnhub, ~Oct 1, 2026) — about 91%, far above the ~33% ceiling, so the debt gate FAILS. Borrowings alone (US$32.69M, ~C$46.5M) would be ~71%. Royalty obligations of US$10.26M (Vision Blue financing) are debt-like and excluded from the gate figure, noted for context. Facts only.

Gate 3 — Non-compliant income: FAIL

Finance income was US$85,908 vs revenue of US$694,289 for the nine months ended March 31, 2026 — about 12.4%, above the ~5% ceiling, so the income gate FAILS. Facts only.

Key figures used

Frequently asked questions

Is NextSource Materials (NEXT) halal?

Our October 2026 screen gives NextSource Materials (NEXT) a FAIL. Interest-bearing debt of ~US$41.6M is about 91% of its ~C$65.1M market cap, far above the ~33% ceiling, and finance income of ~12.4% of revenue exceeds the ~5% ceiling. Its graphite and battery-materials business passes the business gate.

Why did NextSource fail the debt gate?

At March 31, 2026 it carried US$41.6M of interest-bearing debt (borrowings US$32.69M + lease obligations US$8.91M), about C$59.2M, against a market cap of only ~C$65.1M — a ~91% ratio. Borrowings alone would be ~71% of market cap.

Why did it fail the income gate?

Finance income was US$85,908 vs revenue of US$694,289 for the nine months ended March 31, 2026 — about 12.4%, above the ~5% ceiling.

What does NextSource do?

Battery materials: it owns and operates the Molo graphite mine in Madagascar (Phase 1 in production, 17,000 tpa nameplate) and is developing a Battery Anode Facility in Abu Dhabi (Phase 1 14,000 tpa, targeted H2 2027). In September 2026 Hanwa Co. and JOGMEC agreed a binding US$30M subscription for 15% of the anode-facility project company. A permissible business — the business gate passes.

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

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.