Is NEM (Newmont Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, NEM 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 (0.35% vs ≤33% threshold), interest income ratio (0.94% vs ≤5% threshold), and cash & securities ratio (5.67% vs ≤33% threshold).

Newmont Corporation stands as the world's leading gold company, with a massive operational footprint spanning North and South America, Australia, and Africa. Beyond its primary focus on gold production, the company diversifies its resource base by exploring and mining essential industrial metals like copper, silver, zinc, and lead. Founded in 1916 and headquartered in Denver, Newmont holds the distinction of being the only gold producer listed in the S&P 500 index. For Muslim investors seeking exposure to precious metals, Newmont is currently deemed Halal based on AAOIFI standards. The company successfully passed all four critical screening metrics, ensuring its core business of mining is permissible and its financial structure meets Islamic guidelines. This makes NEM a viable option for those looking to hedge against inflation or diversify their portfolio with hard assets without compromising religious values. From a financial health perspective, Newmont demonstrates exceptional discipline that aligns well with Islamic finance principles. The company maintains an extremely low interest-bearing debt load relative to its market cap (0.4%), far below the 33% threshold, which suggests a conservative balance sheet less reliant on impermissible financing. Additionally, the company's cash and interest-bearing securities sit at a healthy 5.7%, and income derived from interest is minimal at 0.94%, reflecting a focus on operational revenue rather than financial engineering. While the stock is currently compliant, investors should always monitor quarterly reports for changes in debt structure or acquisition strategies. Mining companies can sometimes take on significant leverage to fund new projects, which could alter compliance ratios. However, given Newmont's current strong reserve position of over 92 million ounces and low leverage, it remains a robust candidate for a Shariah-compliant portfolio. Newmont Corporation operates in the Basic Materials sector under the Gold industry and is headquartered in Denver, CO, US. The company is led by CEO Natascha Viljoen and employs approximately 22,200 people.

NEM 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. NEM passed 4 of these 4 screens.

Although NEM passes all shariah screens, it does earn $214.0M in interest income (0.94% 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 $0.94 to purify the income.

NEM was last screened on 2026-02-24. 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.