THE Canadian stockbroking group RBC Dominion Securities believes that Ivernia West is substantially undervalued and has set a one-year share price target of 200p for the shares and a three-year price target of 350p. Ivernia is trading at 113p.

In its first analysis of Ivernia, the brokers said that the Lisheen mine would be among the most cost-effective in the world "based on the high grade of the deposit, its shallow depth, its straightforward mining method and high levels of extraction."

RBC Dominion sees full production revenues coming through to Ivernia in 2000 when the mine would be generating revenues for the company of almost £60 million and pre-tax profits of £31.5 million.

Free cash from the mine operation would be generated quickly allowing Ivernia to expand through acquisition or further exploration.