How much of Piedmont Lithium’s revenue comes from haram?

Piedmont currently does not generate any revenue.

It is the 100% owner of the Piedmont Lithium Project, a lithium exploration project seeking to supply battery-grade lithium hydroxide to the electric vehicle and battery storage markets.

Practical Islamic Finance concludes:

None of Piedmont Lithium’s revenue comes from anything inherently haram.

Does Piedmont Lithium rely on interest to operate?

Most Recent Quarter
ended
3/31/2022
Fiscal year
ended
12/31/2021
Fiscal year
ended
6/30/2021
Interest Expense $42 $225 $267
Total Operating Expenses $5,745 $41,169 $19,735
Interest Expense /
Total Operating Expenses
0.74% 0.55% 1.36%
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes:

Riba is used but not relied upon in Piedmont Lithium Inc. operations.

What is Piedmont Lithium’s Environmental, Social, and Governance (ESG) impact?

Environment

According to Piedmont, the company will obtain it’s electricity supply from low-carbon sources including a newly constructed, advanced natural gas generating station. 

Social

No notable social highlights.

Governance

No notable governance highlights.

Practical Islamic Finance concludes:

Piedmont Lithium has a net positive ESG impact.

Comfort Rating

From Piedmont Lithium’s business, financial, and ESG reviews, Practical Islamic Finance rates Piedmont Lithium stock as: 

Comfortable to invest in from a halal perspective.

Sources

Piedmont 2020 20-F 

Authors