How much could $10,000 invested in Core Lithium shares be worth next year?

Is this lithium share the place to put $10,000?

| More on:
A woman looks nonplussed as she holds up a handful of Australian $50 notes.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Core Lithium Ltd (ASX: CXO) shares have been under the pump recently.

At the time of writing, the lithium miner's shares are down 4.5% to 87.5 cents.

This means that its shares are now down over 50% from the 52-week high they reached in November.

While this is disappointing, every cloud has a silver lining.

The silver lining on this occasion is that you certainly will get more bang for your buck when investing at current levels.

For example, if you had invested $10,000 into Core Lithium shares in the middle of November at its peak, you would have picked up a total of 5,319 shares.

Whereas today, a $10,000 investment would pocket you approximately 11,428 shares in the lithium miner.

What could those Core Lithium shares be worth in a year?

Opinion remains divided on where the Core Lithium share price is heading from here. So, it certainly is a riskier-than-average proposition for investors.

However, if analysts at Macquarie are on the money with their recommendation, then Core Lithium shares could be as valuable a commodity as the lithium it pulls out of the ground.

What is the broker saying?

According to a recent note, the broker currently has an outperform rating and a $1.20 price target on the company's shares.

If the Core Lithium share price were to climb to that level, your 11,428 shares would have a market value of just over $13,700.

That's a return of approximately $3,700 or 37% on your original investment. Not bad to say the least!

But once again, it is worth remembering that brokers don't always get it right and that lithium shares are high up on the risk scale. So, it may only be suitable for those with a higher tolerance for risk.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

Two young African mine workers wearing protective wear are discussing coal quality while on site at a coal mine.
Materials Shares

Macquarie tips more than 120% upside for this ASX mining stock

Is this stock worth a buy?

Read more »

A mine worker looks closely at a rock formation in a darkened cave with water on the ground, wearing a full protective suit and hard hat.
Materials Shares

This ASX small-cap mining stock is tipped to rocket 160% higher

The rare earths producer recently kicked off production.

Read more »

Factory worker wearing hardhat and uniform showing new metal products to the manager supervisor.
Materials Shares

Looking for 100% gains? These strategic minerals companies might be worth a look, Bell Potter says

Trade and geopolitical tensions spell good news for companies in the strategic minerals sector.

Read more »

Businessman looks with one eye through magnifying glass
Materials Shares

Why is everyone talking about Fortescue shares today?

This mining giant has announced some big news this morning. Here's what you need to know.

Read more »

Two miners standing together with a smile on their faces.
Resources Shares

ASX 200 mining shares lead the market for a second week

BHP, Fortescue, and Rio Tinto shares reset their 52-week highs while the ASX 200 rose 0.73%.

Read more »

A man looking at his laptop and thinking.
Materials Shares

Forget Fortescue shares, this ASX iron ore stock is better

Let's see why Bell Potter is bullish on this under the radar miner.

Read more »

A mine worker looks closely at a rock formation in a darkened cave with water on the ground, wearing a full protective suit and hard hat.
Materials Shares

Lynas shares crash 41% from their peak: Buy, hold or sell?

Demand for rare earths has soared this year.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Bell Potter names the best ASX critical minerals stocks to buy

Let's see what the broker is saying about these in-demand commodities.

Read more »