When the visible part of the mold (the fruit bodies creating the spores) shows up the tobacco in the cigar is already invaded by the fungus and whiping it or cutting away a small part of the foot will not help much!I've wondered about that--can you smoke moldy cigars? Ok, obviously you can... but are there health issues?
But, I´m totally convinced that the pyrolysis (burning) of fungus will not produce anything more harmful than what is already in the smoke from the tobacco. Eating mold or breathing large quantities of spores is completely different and can be bad for you, depending on what kind of fungus you were exposed to!