Blue Moon Metals (TSXV: MOON; Nasdaq: BMM) has pushed back against short-seller Viceroy Research's critique of its flagship Nussir copper project in Norway, rejecting questions about permits, financing and its broader development strategy, while Haywood Securities says the company remains on track.

Vancouver-based Haywood reaffirmed its buy rating and $15 target price on Friday after Blue Moon management addressed the allegations on a conference call. The broker noted that Norway's government has publicly reaffirmed Nussir as a strategic project, and that the company still targets mill commissioning in the third quarter of 2027 and commercial production in the first quarter of 2028. Nussir, located in Norway's northern Finnmark region, ranks among Europe's larger undeveloped copper deposits, and the EU's Critical Raw Materials Act, which sets benchmarks for domestic extraction and processing of key metals, has added policy weight to developing European copper supply.

"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 wrote 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 moment for Blue Moon as it works to build a Western critical-minerals platform spanning copper, tungsten and antimony. Tungsten and antimony both appear on the U.S. government's list of critical minerals, and supply concerns have sharpened since China, the dominant producer of the two metals, imposed export controls on them. The company is constructing the 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, a day after Viceroy published its report. The firm questioned the legal standing of Nussir's submarine tailings permit, the company's financing arrangements, its acquisition of the Springer tungsten project and its 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.

The submarine tailings permit at the centre of the dispute covers a practice — depositing processed mine waste on the seabed — that has been contested in Norway for years by environmental groups and fishing interests. 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 added that 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 about Blue Moon's balance sheet, noting 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. The United States has had no domestic tungsten mine production since 2015, according to the U.S. Geological Survey, leaving it reliant on imports for much of its supply.

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.