Blue Moon Metals (TSXV: MOON; Nasdaq: BMM) is defending its main Nussir copper project after short-seller Viceroy Research questioned permits, financing and broader development strategy, while an analyst firm says the company remains on track.
Vancouver-based Haywood Securities maintained its buy rating and $15 target price Friday after management addressed the allegations during a conference call. The broker said Norway’s government publicly reaffirmed Nussir as a strategic project and that the company continues to target mill commissioning in the third quarter of 2027, with commercial production in the first quarter of 2028.
“We maintain our constructive outlook for Blue Moon as Nussir issues are clarified and progress is made at the Springer and Apex projects,” lead Haywood mining analyst Pierre Vaillancourt said in a note. “We recognize a recovery in the stock will take time, supported by tangible progress at Nussir as well as U.S. projects.”
The allegations come at a pivotal time for Blue Moon as it tries to build a Western critical-minerals platform spanning copper, tungsten and antimony. The company is constructing its Nussir mine in Norway, plans to restart the Springer tungsten operation in Nevada in 2027 and this week added 33 tungsten and antimony properties across the western U.S. to expand its domestic supply chain.
Shares slide
Blue Moon’s stock fell 11% to close at $6.85 on Thursday after Viceroy’s report a day earlier. It questioned the legal standing of Nussir’s submarine tailings permit, the company’s financing arrangements, the Springer tungsten acquisition and corporate governance.
Viceroy Research is an activist short seller that publishes reports on companies it says are overvalued, seeking to profit if their shares decline.
Blue Moon said the concerns are unfounded and that no regulator has indicated Nussir faces a reassessment similar to one involving another Norwegian mining project. Management said any future application of updated EU water rules would likely require strengthening the permit’s justification rather than redesigning the mine.
Haywood also rejected concerns over Blue Moon’s balance sheet. The broker noted the company has drawn only half of its US$25-million (C$34.7-million) Hartree-Oaktree bridge facility and held C$159 million in cash at the end of the second quarter.
Management said it could repay the drawn amount if necessary, while discussions continue on US$140 million of project financing for Nussir and US$150 million to US$200 million of financing for Springer and Apex, potentially including strategic investors.
Springer project
The analysts also defended Blue Moon’s acquisition of the Springer tungsten project in Nevada, saying management carried out extensive technical work on the processing plant and infrastructure before buying the asset. Management said Springer remains on track for a fourth-quarter 2027 restart and that potential strategic partners have visited the site as they assess funding and commercialization opportunities.
Springer has become central to Blue Moon’s plan to build a U.S.-focused critical-minerals platform. Earlier this week the company expanded that strategy by acquiring 33 tungsten and antimony properties across the western U.S., including several projects near the Springer processing complex.
The company sees the portfolio as a way to secure feed for one of North America’s few tungsten processing facilities while broadening its exposure to metals the U.S. considers strategically important.
Haywood acknowledged that investors are likely to adopt a “show-me” approach until Blue Moon delivers further operational progress, but said upcoming milestones at Springer and Apex should help refocus attention on the company’s longer-term cash flow potential.
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