Is Northern Graphite Corporation (NGC) halal?
Northern Graphite Corporation (TSXV: NGC) is North America's only flake-graphite producer — a permissible business — and its income gate passes (interest income C$21K vs C$8,906K other revenue = 0.24%). But interest-bearing debt of ~C$54.2M against a ~C$13.28M market cap gives a debt ratio of ~408%, far above the 33% ceiling. The FAIL comes from the debt gate alone. Data from Q2 2026 results, screened September 30, 2026. (Note: NGC trades on the TSX Venture Exchange, TSXV: NGC — not the TSX main board.)
The two-gate Shariah screen
Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).
Gate one: the business — graphite mining, permissible
Northern Graphite (TSXV: NGC; also OTCQB: NGPHF), based in Ottawa, Ontario, is the only flake-graphite producer in North America. Its assets are the producing Lac des Iles (LDI) mine in Quebec (temporarily shut down in H1 2026 for critical maintenance and pit-expansion preparation), the advanced-stage Bissett Creek project in Ontario, the permitted Okanjande mine in Namibia (care & maintenance), the Mousseau project in Quebec, and the NGC Battery Materials Group in Germany developing proprietary battery anode materials (plus carbon material processing technology licensing). The business is graphite mining and battery-material development only — no alcohol, tobacco, gambling, conventional finance or insurance, pork, adult entertainment, weapons, or cannabis business lines. The business gate passes.
Gate two: the ratios — debt gate FAILS
- Interest-bearing debt: about C$54.2M at June 30, 2026 — senior secured loan C$31.79M (US$15,969 face plus capitalized/accreted interest; in covenant default, waived effective June 30, 2026), royalty financing C$18.91M (financial liability at amortized cost), other long-term debt C$0.84M, leases C$0.90M, and a repayable government contribution C$1.79M.
- Market cap: 166,013,668 shares outstanding (June 30, 2026) × C$0.08 (TSXV, September 29, 2026) = about C$13.28M.
- Debt ÷ market cap: C$54.2M ÷ C$13.28M = about 408% — far above the ~33% AAOIFI ceiling (fails). Even the narrowest defensible debt definition (senior loan + other LTD + leases only, ~C$33.5M) gives ~252% — still a fail.
- Interest income (Q2 2026 income statement): a separately disclosed "Interest income" line of C$21K — against C$8,906K of "Other revenue" (technology transfer fees, since the "Revenue" line was nil this quarter while LDI was shut down) = 0.24% — under the ~5% AAOIFI ceiling (passes).
- Cash: C$0.24M of cash plus C$2.01M of restricted cash and reclamation deposits = C$2.25M — about 16.9% of market cap, under the ~33% cash-plus-securities ceiling (passes).
The FAIL comes from the debt gate alone. (Context: the company carries a going-concern warning — shareholders' deficiency of C$(47.7)M and negative working capital of C$56.6M.)
What other screeners say
- Zoya: no public rating page found for NGC. Musaffa: no public rating page found for NGC. ShariaPortfolio: publishes no per-stock screening tool — no coverage found. None of the three verifiably covers the ticker as of September 30, 2026.
The bottom line
This screener gives Northern Graphite Corporation (TSXV: NGC) a FAIL. A clean graphite business, an income ratio of 0.24% and cash at 16.9% — but debt of ~C$54.2M against a ~C$13.28M market cap (~408%) breaches the debt gate decisively. Watch the April 2026 Sprott Streaming restructuring (~US$22.5M of debt/interest removal once closed) for a possible re-screen. Snapshot dated September 30, 2026; re-checked quarterly after earnings.
Sources
- Northern Graphite Q2 2026 condensed interim consolidated financial statements (three and six months ended June 30, 2026; approved August 31, 2026) — interest-bearing debt ~C$54.2M (Note 11 senior secured loan C$31.79M; Note 12 royalty financing C$18.91M; Note 14 other LTD C$0.84M; Note 16 leases C$0.90M; Note 15 repayable government contribution C$1.79M), interest income C$21K (Q2), other revenue C$8,906K (Note 20), cash C$0.24M + restricted C$2.01M, 166,013,668 shares outstanding, going-concern warning (Note 1).
- Northern Graphite Q2 2026 results press release (Newsfile, September 1, 2026).
- April 29, 2026 binding Debt Agreement with Sprott Streaming (~US$22.5M senior loan + accrued interest cancellation, 12.5M new shares).
- Market data: TSXV:NGC C$0.08 on September 29, 2026.
Related screeners
Frequently asked questions
Is Northern Graphite (NGC) halal?
Our screener gives Northern Graphite Corporation a FAIL screening result. The business — North America's only flake-graphite producer, plus graphite battery-material development — is clean, and the income gate passes (interest income C$21K vs C$8,906K other revenue = 0.24%). But interest-bearing debt of ~C$54.2M against a ~C$13.28M market cap gives a debt ratio of ~408%, far above the ~33% AAOIFI ceiling. Note: NGC trades on the TSX Venture Exchange (TSXV: NGC), not the TSX main board.
Why does Northern Graphite fail the debt gate?
At June 30, 2026 the company carried about C$54.2M of interest-bearing debt (senior secured loan C$31.79M, royalty financing C$18.91M, other long-term debt C$0.84M, leases C$0.90M, repayable government contribution C$1.79M) against a market cap of only ~C$13.28M (166,013,668 shares at C$0.08). The ratio is ~408% — over twelve times the ~33% AAOIFI ceiling. Even the narrowest defensible debt definition (senior loan + other LTD + leases, ~C$33.5M) gives ~252%, still a fail. The company carries a going-concern warning (shareholders' deficiency C$(47.7)M, negative working capital).
How much debt does Northern Graphite have?
Interest-bearing debt was about C$54.2M at June 30, 2026: a C$31.79M senior secured loan (US$15,969 face plus capitalized interest; in covenant default, waived), C$18.91M royalty financing, C$0.84M other long-term debt, C$0.90M leases, and a C$1.79M repayable government contribution. (A C$46.77M deferred-revenue stream deposit is a contract liability, not counted as debt.)
What do Zoya, Musaffa and ShariaPortfolio say about Northern Graphite?
As of September 30, 2026 we found no public Zoya rating page, no Musaffa rating page, and no ShariaPortfolio coverage for NGC — none of the three verifiably covers the ticker. Our screener reports its own figure-by-figure analysis above.
Could Northern Graphite become halal?
Yes, if the debt load shrinks. On April 29, 2026 Northern Graphite agreed with Sprott Streaming to cancel a US$16M senior loan plus ~US$6.5M of accrued interest in exchange for amended stream terms and 12.5M new shares — removing ~US$22.5M of debt/interest once closed. Re-screen after the restructuring closes or the market cap recovers materially.