Is it irrelevant, or will the Upgrade make the SolGold share price more attractive?

• JP Morgan has initiated at Overweight/Buy with a 90p target
• Consensus: 7 Buys, 0 Holds, 0 Sells; Average target: 72.15p (Source: Bloomberg).
• Current share price 36.17p (at time of writing).
• Shares -20.1% from 2018 highs; +82.2% from 2018 lows; -1.6% year-to date
• 2 Jan: SolGold discovers copper-gold mineralization at Ecuador project
• 20 Nov: SolGold shares rise on increased estimates at Ecuador deposit
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading SolGold – An Example

Let’s say you think that SolGold shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of SolGold using a CFD, at the current price of 36.17p. To do this, you need £2,000.

For the purpose of this example, let’s assume the SolGold share price rises to 39.27p (+8.6%). Your profit would be £860 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. SolGold shares break lower, they fall 3% and hit your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.