TSX Shariah screener · September 2026
Is Sherritt International (S) Halal?
Sherritt International Corp. · TSX: S · Materials
The short answer
Sherritt International (S) is a FAIL. The business gate passes: it is a nickel and cobalt miner and refiner (the 50/50 Moa joint venture in Cuba, refinery in Fort Saskatchewan, Alberta) plus a Cuban power business (Energas), with no disclosed alcohol, gambling, weapons, cannabis or conventional-lending lines. The debt gate fails decisively: about C$323.2M of interest-bearing debt (C$248.8M senior secured notes + C$74.4M credit facility + C$2.1M leases) at June 30, 2026 is roughly 165% of the ~C$197.1M market cap (C$0.28, September 30, 2026), against a ~33% ceiling - five times the limit. The income gate passes: separately disclosed interest income of C$0.3M in Q2 2026 is about 0.51% of C$59.3M revenue, under the ~5% ceiling. The FAIL rests on leverage alone, and the company carries a going-concern warning plus two competing recapitalization proposals (Gillon Capital and a Glencore-backed consortium), neither closed. No public Zoya, Musaffa or ShariaPortfolio rating for S was found as of September 2026. As with every screener here, this is a rules-based screening of published figures, not a religious ruling - consult a qualified scholar for personal guidance.
Gate 1 — Business activity: PASS
Sherritt International Corp. is a Canadian resources company built on three pillars: the 50/50 Moa joint venture with General Nickel Company S.A. of Cuba, which mines, processes and refines nickel and cobalt (the refinery is in Fort Saskatchewan, Alberta - Canada's only domestic battery-grade cobalt refinery); a one-third interest in Energas S.A., which processes raw natural gas and sells electricity to the Cuban grid; and fertilizer/sulphuric acid production at its Fort Saskatchewan site, plus legacy oil & gas assets. None of the Q2 2026 disclosures, press releases or IR materials describe alcohol, tobacco, gambling, weapons or conventional-lending businesses. The business-activity gate passes. Facts only, no fatwa.
Gate 2 — Debt: FAIL
Decisively. Note 12 of the Q2 2026 interim financial statements (as at June 30, 2026) shows C$248.8M of Amended Senior Secured Notes (principal C$249.0M), C$74.4M drawn on the Credit Facility - total loans and borrowings of C$323.2M (C$86.9M current, including a C$12.5M note repurchase due December 15, 2026) - plus C$2.1M of lease liabilities, for total interest-bearing debt of about C$323.2M. Against a market capitalization of about C$197.1M (C$0.28, September 30, 2026, on about 704.0M shares outstanding after ~207.4M shares were issued April 7, 2026 at C$0.21), the debt-to-market-cap ratio is roughly 165% - against a ~33% ceiling. Even at the 52-week high price of C$0.50 (roughly C$352M market cap), the ratio would be about 92% - still a fail. The company disclosed a going-concern warning, credit-facility borrowing-base deficiencies and an EBITDA-to-interest covenant breach in the same filing.
Gate 3 — Non-compliant income: PASS
The Q2 2026 statements of comprehensive loss separately disclose "interest income on financial assets measured at amortized cost" of C$0.3M for Q2 2026 against revenue of C$59.3M - about 0.51% - and C$0.5M for the six months ended June 30, 2026 against revenue of C$93.3M - about 0.54%, under the ~5% ceiling. So the non-compliant income gate passes.
Key figures used
- Business: nickel/cobalt mining and refining (Moa JV, Cuba) + Cuban power (Energas) + fertilizer/sulphuric acid — no prohibited lines — PASS
- Total debt: ~C$323.2M at June 30, 2026 (C$248.8M senior secured notes + C$74.4M credit facility + C$2.1M leases)
- Market cap: ~C$197.1M (C$0.28, September 30, 2026, on ~704.0M shares)
- Debt ÷ market cap: ~164.0% vs ~33% ceiling — FAIL
- Interest income ÷ revenue: C$0.3M ÷ C$59.3M ≈ 0.51% (Q2 2026) vs ~5% ceiling — PASS
- Cash: C$203.8M at June 30, 2026 (Canada C$80.1M; Cuba C$119.8M, access-constrained)
- Material context: going-concern warning; two competing recapitalization proposals (Gillon Capital warrant placement toward 55% ownership; Glencore-backed consortium bid at C$0.12/share for 55%) — neither closed as of September 2026; Fort Saskatchewan refinery in shutdown state from ~June 2026; TSX: S; no public Zoya, Musaffa or ShariaPortfolio rating found
Frequently asked questions
Is Sherritt International (S) halal?
Our September 2026 screen gives Sherritt International Corp. (TSX: S) a FAIL. The business gate passes: it is a nickel and cobalt miner and refiner (the 50/50 Moa joint venture in Cuba, refinery in Fort Saskatchewan, Alberta) plus a Cuban power business, with no disclosed alcohol, gambling, weapons, cannabis or conventional-lending lines. The debt gate fails decisively: about C$323.2M of interest-bearing debt at June 30, 2026 is roughly 165% of the ~C$197.1M market cap (C$0.28, September 30, 2026), against a ~33% ceiling. The income gate passes: separately disclosed interest income of C$0.3M in Q2 2026 is about 0.51% of C$59.3M revenue, under the ~5% ceiling. The FAIL rests on leverage alone; the company also carries a going-concern warning and two unclosed recapitalization proposals. No public Zoya, Musaffa or ShariaPortfolio rating for S was found as of September 2026. This is a rules-based screening of published figures, not a religious ruling.
What business is Sherritt in?
Sherritt International Corp. is a Canadian resources company built on three pillars: the 50/50 Moa joint venture with General Nickel Company S.A. of Cuba, which mines, processes and refines nickel and cobalt (the refinery is in Fort Saskatchewan, Alberta - Canada's only domestic battery-grade cobalt refinery); a one-third interest in Energas S.A., which processes raw natural gas and sells electricity to the Cuban grid; and fertilizer/sulphuric acid production at its Fort Saskatchewan site, plus legacy oil & gas assets. None of the Q2 2026 disclosures, press releases or IR materials describe alcohol, tobacco, gambling, weapons or conventional-lending businesses.
Why does Sherritt fail the debt gate?
Because it owes far more than it is worth on the market. Note 12 of the Q2 2026 interim financial statements (June 30, 2026) shows C$248.8M of senior secured notes and C$74.4M drawn on the credit facility - C$323.2M of loans and borrowings - plus C$2.1M of lease liabilities, for about C$323.2M of interest-bearing debt. Against a market cap of about C$197.1M (C$0.28, September 30, 2026, on ~704.0M shares), that is roughly 165% debt to market cap versus a ~33% ceiling - five times the limit. Even at the 52-week high price of C$0.50 it would be about 92% - still a fail. The same filing carries a going-concern warning, borrowing-base deficiencies and an EBITDA-to-interest covenant breach.
How much interest income does Sherritt earn?
Very little. The Q2 2026 statements of comprehensive loss separately disclose "interest income on financial assets measured at amortized cost" of C$0.3M for Q2 2026 against revenue of C$59.3M - about 0.51% - and C$0.5M for the six months ended June 30, 2026 against revenue of C$93.3M - about 0.54%, under the ~5% ceiling. So the non-compliant income gate passes.
What do Zoya, Musaffa or ShariaPortfolio say about S?
No public Zoya, Musaffa or ShariaPortfolio rating for S (TSX) was found as of September 2026, so this screen relies entirely on the company's published financial statements and disclosures. Other Canadian materials names on this site - Algoma Steel, Endeavour Mining, Galiano Gold, Major Drilling, Western Forest Products and Acadian Timber - are screened on the same business, debt and income basis.
Sources
- Sherritt Q2 2026 consolidated statements of comprehensive loss (Note 8: interest income on financial assets measured at amortized cost C$0.3M Q2 / C$0.5M H1) and Note 12 (loans and borrowings C$323.2M at June 30, 2026) — via SEDAR-filed interim financial statements
- Sherritt Reports Second Quarter 2026 Results (revenue C$59.3M Q2; loans and borrowings C$323.2M; credit-facility excess borrowings; going-concern material uncertainty; Gillon Capital + Glencore-backed recapitalization proposals)
Screened 2026-09-30 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.