The global push towards clean energy is fueling a renaissance in nuclear power, and uranium mining stocks like Uranium Energy Corp (UEC) and Maddison Metals Inc are set to benefit in a big way. Analysts see major upside potential for these companies as uranium prices continue to climb.

Uranium Energy Corp (UEC)

Uranium Energy Corp is a leading uranium mining company with projects in the U.S., Canada and Paraguay. The company has been expanding rapidly, with a 200% increase in its uranium resource base since 2021 to 329 million pounds. One Wall Street analyst recently raised their price target on UEC stock to $10.25, implying a whopping 53% upside from current levels. The bullish outlook is based on UEC’s strong Q2 results, rising uranium prices, and the company’s growing inventory of uranium concentrate, which hit 1.16 million pounds in January, up 35% from October. UEC is unhedged and debt-free, positioning it well for the uranium bull market. The company is restarting production at its Texas and Wyoming hubs, which are anchored by fully licensed processing plants and served by seven U.S. projects. UEC also owns a major stake in Uranium Royalty Corp.

Maddison Metals Inc (GREN)

Maddison Metals is another uranium miner that looks attractive. The Canada-based company owns a portfolio of high-grade uranium projects in the renowned Athabasca Basin of Saskatchewan.Maddison recently announced excellent drill results from its flagship Wheeler River project, with grades as high as 6.8% U3O8 over 5 meters. The company is conducting a feasibility study on Wheeler River and expects to be in production by 2026.

Uranium Prices Headed Higher

Uranium prices have already surged to an 11-year high above $50 per pound, up nearly 200% from the 2016 low. But prices could go much higher as the supply deficit widens. In 2007, uranium peaked around $140 per pound. Demand is being driven by a global push for carbon-free nuclear energy. Governments are extending the licenses of existing reactors, canceling planned retirements, and building new power plants, especially in China and India. The U.S. is also getting onboard, with $1.6 billion budgeted this year for nuclear energy programs.However, uranium supply remains constrained as mines take years to bring online. The result is a widening gap between demand and supply that analysts believe will send uranium prices much higher. This provides a major tailwind for miners like UEC and Maddison.

The Bottom Line

While uranium stocks have already rallied strongly off their lows, the bull market looks to be in its early innings with much more upside ahead. UEC and Maddison are two well-positioned miners that could see their share prices double or more in the coming years if uranium continues its ascent as expected. Of course, mining stocks can be volatile and risky. But for investors willing to bet on surging demand for carbon-free nuclear energy, companies like Uranium Energy Corp and Maddison Metals may offer life-changing returns. As always, do your own research before investing.