Search

Gold price is an impactful variable in the gold mine project evaluation. The gold price is one of the most discussed variables in the literatures due to its uncertainty. In the gold mine project evaluation, gold price modeling is one activity commonly done to anticipate the project's risk. In this study, the gold prices within certain periods of time were modeled using quantum mechanics (QM) as a particle in a one-dimensional infinite well. Using this analogy, we demonstrate that the associated wave function leads to a Born probability density which could explain the gold price uncertainty. In addition, QM views the gold price distribution having multiple peaks, which actually happened in some periods of time, as a confined particle in an excited state. Essentially, this research proposed a gold mine project risk analysis where the probability distribution of the gold prices follows the QM perspective. The approach can also be used for different mining project and different uncertain variables by adjusting the QM parameters. [ABSTRACT FROM AUTHOR]