Blue Moon rejects short seller’s claims
Viceroy Research raised concerns about permits and financing, but an analyst firm says the company is on track.
Blue Moon Metals (TSX-V: MOON; Nasdaq: BMM) is defending itself against allegations from short-seller Viceroy Research, which questioned permits, financing and development strategy for the company's Nussir copper project in Norway. Analyst firm Haywood Securities, however, maintains an optimistic outlook, stating that the company remains on track for mill commissioning in Q3 2027 and commercial production in Q1 2028.
Haywood Securities' lead mining analyst, Pierre Vaillancourt, cited Norway's government reaffirming Nussir as a strategic project and the company's commitment to achieving these milestones despite the recent challenges.
Viceroy Research's report came at a time when Blue Moon is trying to establish itself as a Western critical-minerals platform, with projects in copper, tungsten, and antimony. The company is constructing its Nussir mine in Norway, planning to restart the Springer tungsten operation in Nevada in 2027, and recently acquired 33 tungsten and antimony properties across the western U.S. to bolster its domestic supply chain.
Shares of Blue Moon fell 11% to close at $6.85 on Thursday following Viceroy Research's report, which raised concerns over the legal standing of Nussir's submarine tailings permit, financing arrangements, the Springer tungsten acquisition, and corporate governance. However, Blue Moon's management dismissed these allegations as unfounded, with the company noting that no regulator has indicated a need for reassessment similar to another Norwegian mining project.
Haywood Securities also rejected concerns about the company's balance sheet, stating that it has drawn only half of its $25-million Hartree-Oaktree bridge facility and holds C$159 million in cash.
Haywood Securities defended Blue Moon's acquisition of the Springer tungsten project in Nevada, emphasizing that management conducted extensive technical work on the processing plant and infrastructure before purchasing the asset. The analyst firm stated that Springer remains on track for a fourth-quarter 2027 restart and that potential strategic partners have visited the site to assess funding and commercialization opportunities.
Blue Moon's strategic U.S. expansion aims to secure feed for North America's few tungsten processing facilities and broaden its exposure to metals considered strategically important by the U.S. government. Haywood Securities acknowledged that investors may adopt a "show-me" approach until Blue Moon delivers further operational progress, but stated that upcoming milestones at Springer and Apex should help refocus attention on the company's long-term cash flow potential.
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