Shares digital

The shares of gold producer Serabi Mining (SRB:AIM) have more than halved since last summer after changing mining methods resulted in lower production and higher cash costs. An operations revamp is under way and should improve gold output significantly by the time it reports interims mid-year, says independent stockbroker Ambrian. Serabi is looking to produce 45,000 ounces of gold this year, 60% up on current processing rates. House broker Numis believes Serabi's share price could approximately double in the next 12 months to 40p. Serabi now deserves a positive rerating as it fixes production issues. Worth buying in light of a stronger outlook for gold and operational recovery potential.

by Dan Coatsworth