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

Engineer looking at mining trucks at a mine site.
Materials Shares

Core Lithium shares rocketed 44% in September! What can ASX investors expect now?

Core Lithium shares smashed the benchmark in September. But how?

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Materials Shares

Why today is a good day to own BHP shares

The Big Australian's shareholders will be smiling on Thursday.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Materials Shares

Up 14% in two weeks: Can Rio Tinto shares keep rising?

Goldman Sachs has given its verdict on the mining giant this morning.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Materials Shares

Why did the Pilbara Minerals share price smash the market in September?

This lithium miner caught the eye last month. Let's see why investors were buying its shares.

Read more »

a group of five engineers wearing hard hats and some in high visibility vests raise their arms in happy celebration atop a building site with construction and equipment in the background.
Materials Shares

Liontown share price surges on full year results, lithium shipment, and spot sale news

This lithium miner has been very busy recently. Here's what's happening.

Read more »

View of a mining or construction worker through giant metal pipes.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

ASX materials shares rose by an extraordinary 9.37% while the ASX 200 lifted 0.68% last week.

Read more »

A young child stands against a wall holding measuring tape behind them as they wish not to be so short
Materials Shares

Should I sell my Pilbara Minerals shares since they're the most shorted on the ASX?

Is the ASX's most shorted stock a sell?

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Materials Shares

Why is this ASX lithium stock jumping 7% on Friday?

This lithium developer made an announcement this morning. Here's what you need to know.

Read more »