By: AllPennyStocks.com News

Tuesday, July 10, 2012

Diamond makers – companies that grow synthetic (“cultured” or “cultivated”) diamonds in the lab as opposed to mining them from the earth – are seeing some nice upward pressure today with two juniors in the news. Scio Diamond Technology Corp. (OTCBB:SCIO) updated its shareholders with news that production is exceeding expectations since they starting bringing reactors online in July. Before pre-production began at that time, the company went through significant change to move its reactors from Boston to its new production facilities in South Carolina, a succinct move to substantially cut operational costs and build topline profits. Scio now has seven growers operating using its S3532 technology with yields improving weekly. Since going into pre-production five weeks ago, Scio has produced 625 gross carats of diamond. Running the machines at conservative speeds, the company is averaging 4.44 carats per hour of growth presently with plans to ramp-up production as it builds a self-sustaining seed stock. Scio plans to have ten reactors in full production by the end of its second fiscal quarter.

Scio Diamond employs a patent-protected chemical vapor deposition process to produce high-quality, single-crystal diamonds in a controlled laboratory setting, with such diamonds referred to as "lab-grown" or cultivated diamonds. Through its proprietary technologies, Scio is able to make diamonds in virtually any configuration, size or color for a multitude of uses in the jewelry, commercial and industrial industries. Make no mistakes, the diamonds made by Scio are not flimsy knock-offs of diamonds found in the ground. They have identical properties of hardness, thermal conductivity and electron mobility of mined diamonds and even carry certifications from the Gemological Institute of America (GIA), the world’s foremost authority in gemology, as well as the Institute of Gemology (IGI) and the European Gemological Laboratory (EGL).

Shares of SCIO have slipped lower since hitting highs near $4.50 late in 2011 and even touched an all-time low of $2.10 recently, but are back on the climb in the last couple weeks. Shares are printing $2.75 half-way through trading today.

Also in the news today, Centaurus Diamond Technologies Inc., formerly Sweetwater Resources, (OTCBB:CTDT) is seeing shares soar on big volume as the company has been active in providing the investment community information on the man-made diamond industry recently. From a corporate level, Sweetwater was a developmental company that signed an LOI to acquire the diamond-making technologies of Centaurus Technologies in April 2012, acquired 100-percent of Innovative Sales in June and changed its name and ticker symbol on July 9th. Along with the changes, new directors and a new CEO are now in place as the company looks to broaden its footprint in the cultured diamond industry. A freshly-traded issue, shares of CTDT are flying out of the gates today and at last check were up over 50% today alone on very strong volume.

The GIA has also tested the Centaurus’ diamonds and has confirmed they are diamonds according to their testing protocols.

While Centaurus is several steps behind Scio (Scio is already online and taking orders), both companies represent a unique opportunity as there is very limited competition in the cultured diamond industry. Not only is there always a market for diamonds as precious gems and many other applications being used today in the industrial space, the expansion possibilities is what gives players in the space a special appeal. Because of the incredible thermal conductivity (heat passes through a diamond without damaging it) and incredible hardness (hardest material known to man), uses in the technology industry could explode in the mid-term as cultivated diamonds are being heralded by some as the material operating system of the future. The reality is that tech companies have been aware of the exponential uses of diamonds for years, but applications have been constrained for obvious cost reasons. Cultured diamonds can provide a solution across many verticals which leave juniors in the space extremely well-positioned for growth in both the near and long term.

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