Is FRES.L (Fresnillo plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, FRES.L is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (2.73% vs ≤33% threshold), interest income ratio (1.30% vs ≤5% threshold), and cash & securities ratio (4.15% vs ≤33% threshold).

Fresnillo plc is the world's leading primary silver producer and Mexico's largest gold producer, focusing on the extraction and processing of non-ferrous minerals. The company operates major mining assets including the Fresnillo, Saucito, and San Julián mines in Zacatecas and Durango, primarily selling silver and gold concentrates alongside secondary lead and zinc by-products. Its operations are concentrated in Mexico, where it manages a portfolio of high-quality, low-cost mines that form the backbone of its revenue stream. For Muslim investors seeking exposure to the precious metals sector, Fresnillo plc is considered Halal under AAOIFI standards. The company passed all four primary financial screens, meaning its business activities are permissible and its financial ratios are within the acceptable limits set by Islamic scholars . This makes it a viable option for those looking to diversify their portfolio with commodities like gold and silver without compromising shariah principles. From a financial health perspective, Fresnillo demonstrates strong alignment with Islamic finance values due to its conservative use of leverage. The company's interest-bearing debt relative to its market capitalization is remarkably low at 2.7%, far below the 3 3% limit, indicating it does not rely heavily on prohibited interest-based loans. Furthermore, its liquidity position is solid , with cash and short-term securities making up just 4.2% of its market cap, avoiding the hoarding of cash which is often discouraged. Investors should continue to monitor the company's treasury management strategies, particularly regarding how it invests its surplus cash. While current interest income is a negligible 1.30% of revenue, ensuring this figure remains below the 5% purification threshold is essential for continued compliance. As with all halal stocks, any small portion of dividend income derived from interest should be purified by donating that percentage to charity. Fresnillo plc operates in the Basic Materials sector under the Other Precious Metals industry and is headquartered in Mexico City, DF, MX. The company is led by CEO Octavio Alvidrez and employs approximately 7,179 people.

FRES.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. FRES.L passed 4 of these 4 screens.

Although FRES.L passes all shariah screens, it does earn $45.3M in interest income (1.30% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $1.30 to purify the income.

FRES.L was last screened on 2026-03-01. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.