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

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

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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.

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