"At $0.50/share, I value Castle Gold's current IRR between 40-54% for a payback of 1.8-2.5 years going out from 2008."

IRR is usually fixed and is used by a company to determined if a project should be invested upon or not. It is the return necessary to satisfy shareholders over the long term.

I have never heard of an outsider (why it is called internal) calculating the IRR of a company ... IRR by definition is the rate of return by a company to determine if capital should be employed in the decision making process.

Generally .... this implies when a project is evaluated, if the expected rate of return is greater or equal than the IRR, the project is a go ... otherwise the project is a no go.

Accordingly, I do not view the valuation made as being based upon appropriate commonly used methods ... it does use however a lot of financial jargon.

I agree with the general sentiment the CSG's price is undervalued, but I do not agree with the methodology for your conclusion.

Orgy