NEW YORK (TheStreet) -- Capital Gold (CGC), Uranerz Energy (URZ), Richmont Mines (RIC), Ur-Energy (URG), Brigus Gold (BRD), Uranium Resources (URRE) and Golden Minerals (AUMN) are seven mining stocks with potential upside of 10%-220%. Being analysts' favorites, most of these stocks have no sell ratings.
As these companies are uranium and gold miners, a peek into the fundamentals of the underlying metals is warranted. Uranium demand is currently outstripping supply in the U.S. During 2010, uranium demand from U.S. utilities was approximately 57 million pounds while production stood at 4.2 million pounds, according to the U.S. Energy Information Administration. However, secondary supply from Russia circumvents this supply shortfall.
Moreover, the long-term market fundamentals and uranium price outlook remain robust, given the growing emphasis on clean energy and fuel demand from nuclear reactors for electricity generation in developing countries such as China, India and South Korea.
The total new builds (under construction, planned and proposed) of nuclear reactors have grown from 250 as of Jan. 2007 to 544 as of March 2011, according to the World Nuclear Association (WNA). This increase will act as a demand driver for uranium as nuclear fuel.Gold, on the other hand, has gained 30% during the past one year, primarily attributable to fears of a double-dip recession, Europe's debt crisis and growing demand India and China. This safe-haven buying may extend as tension mounts in Libya and the Middle East.
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