SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 1995 HOMESTAKE MINING COMPANY SAVINGS PLAN (Full title of Plan) HOMESTAKE MINING COMPANY (Issuer of Securities Held Pursuant to the Plan) 650 California Street San Francisco, California 94108 (Address of principal executive offices) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Trustees (or other persons who administer the Plan) have duly caused this annual report to be signed by the undersigned thereunto duly authorized. HOMESTAKE MINING COMPANY SAVINGS PLAN By /s/ T.H. Wong ---------------------------- T.H. Wong Assistant Treasurer and Assistant Secretary June 26, 1996 Item 1. Financial Statements and Exhibits a. Financial Statements for the years ended December 31, 1995 and 1994 and Supplemental Schedules as of and for the year ended December 31, 1995 and Independent Auditors' Report. b. Exhibit No. 23 Independent Auditors' Consent HOMESTAKE MINING COMPANY SAVINGS PLAN ------- FINANCIAL STATEMENTS for the years ended December 31, 1995 and 1994 HOMESTAKE MINING COMPANY SAVINGS PLAN ------- TABLE OF CONTENTS Page Financial Statements: Report of Independent Accountants 2 Statements of Net Assets Available for Benefits as of December 31, 1995 and 1994 3 Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 1995 4 Notes to Financial Statements 5-16 Supplemental Schedules: Item 27a - Schedule of Assets Held for Investment Purposes as of December 31, 1995 17 Item 27d - Schedule of Reportable Transactions for the Year Ended December 31, 1995 18 1 REPORT OF INDEPENDENT ACCOUNTANTS The Savings Plan Committee Homestake Mining Company San Francisco, California We have audited the accompanying statements of net assets available for benefits of the Homestake Mining Company Savings Plan (the Plan) as of December 31, 1995 and 1994, and the related statement of changes in net assets available for benefits for the year ended December 31, 1995. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Plan management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 1995 and 1994, and the changes in net assets available for benefits for the year ended December 31, 1995, in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes as of December 31, 1995 and of reportable transactions for the year then ended are presented for the purpose of additional analysis and are not a required part of the basic financial statements, but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ Coopers & Lybrand L.L.P. - ---------------------------- San Francisco, California June 20, 1996 2 HOMESTAKE MINING COMPANY SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1995 and 1994 (in thousands) ASSETS 1995 1994 ------- -------- Cash and cash equivalents: $ 607 $ 518 ------- ------- Investments: Wells Fargo Asset Allocation Fund 9,761 7,107 Wells Fargo S&P 500 Stock Fund - 4,169 Wells Fargo Lifepath Funds 5,046 4,215 Neuberger & Berman Guardian Trust Fund 1,416 - Templeton Foreign Fund 400 - Wells Fargo Stagecoach S&P 500 Stock Fund 5,941 - Homestake Mining Company Stock Fund 10,029 10,165 Participant loans receivable 2,222 2,051 Fixed Income Fund 19,915 21,236 Frozen Confederation Life Guaranteed Investment Contracts (See Note 12) 3,091 3,091 ------ ------ 57,821 52,034 Receivables & Other Assets: - 3 ------ ------ Total assets 58,428 52,555 LIABILITIES Amounts due to brokers for securities purchased 327 144 ------- ------- Net assets available for benefits $58,101 $52,411 ======= ======= The accompanying notes are an integral part of these financial statements. 3 HOMESTAKE MINING COMPANY SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS for the year ended December 31, 1995 (in thousands) Additions to net assets attributed to: Interest and dividends $ 1,383 Interest on participants' loans 186 Mutual fund income 235 Net appreciation in the fair value of investments 4,392 ------- 6,196 ------- Contributions: Company, in cash 1,826 Participants, in cash 2,679 Transfers in from other plans 129 ------- 4,634 ------- Total additions 10,830 ------- Deductions from net assets attributed to: Net depreciation in the fair value of investment in Homestake Mining Company Stock Fund 595 Benefits paid to participants 4,497 Transfers out to other plans 48 ------- Total deductions 5,140 ------- Net increase 5,690 Net assets available for benefits: Beginning of year 52,411 ------- End of year $58,101 ======= The accompanying notes are an integral part of these financial statements. 4 HOMESTAKE MINING COMPANY SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 1. Description of Plan: The following description of the Homestake Mining Company Savings Plan (the Plan) provides only general information. Participants should refer to the full Plan for a more complete description of the Plan's provisions. General: The Plan is a defined contribution profit sharing plan (designed to be qualified under Internal Revenue Code Sections 401(a) and 401(k)) covering all full-time salaried employees of Homestake Mining Company and its subsidiaries (the Company) who have completed three months of service, and all temporary employees who have completed one year of service. Hourly employees of the Company who are not covered by collective bargaining agreements and have completed three months of service are also eligible to participate in the Plan. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended. The Plan is administered by the Company through a committee of management. Wells Fargo Bank was the Plan's trustee through December 31, 1995, and was replaced by BZW Global Trust Company, N.A., a unit of Barclays Bank P.L.C., effective January 1, 1996. (Wells Fargo's 401(k) Masterworks division was sold to Barclays Bank P.L.C.) In addition, BZW Barclays Global Fund Advisors replaced Wells Fargo Bank as the investment advisor effective January 1, 1996. Contributions: Participation is voluntary. Participants may make pre-tax or after-tax contributions of between 1% and 15% (between 1% and 14% pre-tax) of compensation. Participant contributions not exceeding 6% of wages or of salary are matched by the Company. Effective January 1, 1995, the Company matching rate was increased to 100% from 75%. Participants may also contribute to the Plan amounts previously contributed to another qualified plan. These contributions are not matched by the Company. Each participant may cause some or all of its current or cumulative contributions, including any amounts contributed by the Company to match contributions, to be invested in one or more of the investments made available through the Plan. 5 HOMESTAKE MINING COMPANY SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 1. Description of Plan, continued: Participants' Accounts: Separate accounts are maintained for each participant. Each participant's account is directly credited with the participant's contribution and the Company's matching contribution. Net earnings from each investment fund, including appreciation (depreciation) in fair value, are allocated to each participant's account based on the ratio which the participant's account balance in that investment fund bears to the total of all participants' account balances in that investment fund. Vesting: Participant contributions and any income (loss) thereon are fully vested at all times. Company contributions and any income (loss) thereon are vested 60% after three years of service, 80% after four years of service, and 100% after five years of service, on attainment of age 65, or on the occurrence of death or disability. Payment of Benefits: The Plan permits withdrawal of after-tax contributions. The Plan permits withdrawal of pre-tax contributions upon: (1) Termination of employment; (2) Attainment of age 59 1/2; (3) Death (with vested account balance paid to designated beneficiary); (4) Hardship. The Plan permits withdrawal of vested Company matching contributions made prior to January 1, 1994; however, the right of the participant who makes such a withdrawal to continue participating in the Plan is suspended for twelve months. 6 HOMESTAKE MINING COMPANY SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 1. Description of Plan, continued: Payment of Benefits, continued: Distribution of benefits, except for certain participants that are required to receive annuities, can be in the form of a single-lump-sum cash payment, a portion paid in a lump-sum and the remainder paid later, or by periodic installments. Participant Loans Receivable: Participants may borrow from their vested accounts $1,000 to $50,000 limited to 50% of the value of such accounts. The loan term cannot exceed five years unless the loan is for the purchase of a principal residence, in which case, it cannot exceed ten years. These loans bear interest at bank prime rate plus 1%. Loans are collateralized by the borrower's note and vested interest in the Plan and repayments are made on at least a monthly basis through payroll deductions. Forfeitures: Forfeitures of unvested Company contributions for terminated employees can be utilized to restore participants' accounts, to pay plan fees and expenses, to offset company matching contributions or allocated to participants. 2. Significant Accounting Policies: Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of net assets available for benefits at the date of the financial statements and the reported amounts of changes in net assets available for benefits during the reporting period. Actual results could differ from those estimates. Basis of Accounting: The financial statements of the Plan are prepared under the accrual basis of accounting in accordance with generally accepted accounting principles. 7 HOMESTAKE MINING COMPANY SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 2. Significant Accounting Policies, continued: Investment Valuation and Income Recognition: Shares and units in investment funds are valued at quoted market prices, representing the net asset value of the shares or units held by the Plan at year end. Guaranteed investment contracts are stated at contract value (cost plus accrued interest). Participant notes receivable are valued at cost which approximates market value. Purchases and sales of securities are recorded on a trade-date basis, utilizing the average cost method in determining the basis of investments sold. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Withdrawals: Withdrawals of securities from the Homestake Mining Company Common Stock Fund may be made in cash, common stock, or both, and are reported at market valuation. Withdrawals from the Wells Fargo Asset Allocation Fund, Wells Fargo Lifepath Funds, Neuberger & Berman Guardian Trust Fund, Templeton Foreign Fund, Wells Fargo Stagecoach S&P 500 Stock Fund, and Fixed Income Fund are made in cash. Net Appreciation (Depreciation) in Fair Value of Investments: The Plan presents in the statement of changes in net assets available for benefits the net appreciation (depreciation) in the fair value of its investments, which consists of realized gains (losses) and the unrealized appreciation (depreciation). 3. Concentration of Investments: A significant portion of the Plan's assets are invested in the Homestake Mining Company Common Stock Fund and are, therefore, subject to fluctuations in the market value of such stock, which is, in turn, impacted by the price of gold. 8 HOMESTAKE MINING COMPANY SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 4. Plan Termination: Although the Company has not expressed any intent to do so, it has the right under the Plan and subject to applicable law, to discontinue its contributions at any time and to terminate the Plan. In the event of Plan termination, all accumulated plan benefits will be fully vested and will be distributed to participants based on their respective account balances. 5. Reclassifications: Certain reclassifications were made to 1994 balances to conform with the 1995 presentation, with no effect on the net assets available for benefits or net change in net assets available for benefits, as previously reported. 6. Plan Tax Status: The Plan obtained its latest determination letter in July 1995, in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with Sections 401(a) and 401(k) of the Internal Revenue Code. The Plan has been amended since receiving the determination letter; however, the Plan administrator and the Plan's tax counsel are not aware of circumstances creating a material risk of Plan disqualification. Therefore, no provision for income taxes has been included in the Plan's financial statements. Participants are not subject to federal income taxes on their pre-tax contributions, Company matching contributions, or investment earnings allocated to their accounts until withdrawals are made. 7. Related Party Transactions: Certain Plan investments are units in investment funds managed by the Trustee. Therefore, these transactions are transactions with a party-in-interest. 9 HOMESTAKE MINING COMPANY SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 8. Investments: Investments at December 31, 1995 and 1994 are comprised of the following (in thousands): Number Value Reported of Per Value 1995: Units Unit (in thousands) - ---- ------- ------- --------- Wells Fargo Bank Investment Funds, at fair value: Wells Fargo Asset Allocation Fund 507,334 $19.24 $ 9,761 Wells Fargo Lifepath Funds 421,389 11.39-12.93 5,046 Wells Fargo Income Accumulation Fund 839,520 12.42 10,429 ------- 25,236 Mutual Funds, at fair value: Neuberger & Berman Guardian Trust Fund 102,558 13.81 1,416 Templeton Foreign Fund 43,529 9.19 400 Wells Fargo Stagecoach S&P 500 Stock Fund 442,004 13.44 5,941 ------ 7,757 Fixed Income Fund, Guaranteed Investment Contracts, at contract value: Allstate Life Insurance Company 2,014,325 1.00 2,014 Bankers Trust Company 3,416,528 1.00 3,417 Crown Life Insurance Company 1,041,937 1.00 1,042 John Hancock Mutual Life Insurance Company 3,013,143 1.00 3,013 ------ 9,486 Confederation Life Guaranteed Investment Contracts, at contract value (see Note 12) 3,090,586 1.00 3,091 ------ Homestake Mining Company Stock Fund, at fair value 1,437,671 6.98 10,029 ------ Participant loans receivable, at book value, which approximates fair value - - 2,222 ------- Total investments $57,821 ======= 10 HOMESTAKE MINING COMPANY SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 8. Investments, continued: Number Value Reported of Per Value 1994 Units Unit (in thousands) - ---- ------- -------- --------- Wells Fargo Bank Investment Funds, at fair value: Wells Fargo Asset Allocation Fund 477,636 $14.88 $7,107 Wells Fargo S&P 500 Stock Fund 253,440 16.45 4,169 Wells Fargo Lifepath Funds 430,268 9.80 4,215 Wells Fargo Income Accumluation Fund 193,434 11.65 2,253 ------ 17,744 Fixed Income Fund, Guaranteed Investment Contracts, at contract value: Allstate Life Insurance Company 2,015,205 1.00 2,015 Massachusetts Mutual Life Insurance Company 2,107,174 1.00 2,107 Bankers Trust Company 3,230,702 1.00 3,231 Canada Life Assurance Company 2,055,325 1.00 2,055 Crown Life Insurance Company 1,168,226 1.00 1,168 John Hancock Mutual Life Insurance Company 2,865,594 1.00 2,866 New York Life Insurance Company 5,541,050 1.00 5,541 ------ 18,983 Confederation Life Guaranteed Investment Contracts, at contract value (see Note 12) 3,090,586 1.00 3,091 ------ Homestake Mining Company Stock Fund, at fair value 1,354,445 7.50 10,165 ------ Participant loans receivable, at book value, which approximates fair value - - 2,051 ------- Total investments $52,034 ======= 11 HOMESTAKE MINING COMPANY SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 8. Investments, continued: All earnings on the investment funds are reinvested in and credited to each fund daily. These earnings include interest, dividends, and appreciation (depreciation) in fair value. The Asset Allocation Fund invests in a changing mix of stocks, bonds, and money market securities and aims for a high level of total return over the long term, consistent with reasonable risk. The Lifepath Funds invest in a changing mix of US and international stocks, bonds, and money market securities and aim for greater growth potential in early years and then gradually reduce risk to exposure over time. The Neuberger & Berman Guardian Trust Fund is a growth and income fund that emphasizes investments in stocks of established, high quality companies considered to be under valued in comparison to stocks of similar companies. The Templeton Foreign Fund seeks long-term capital growth through a flexible policy of investing in stocks and debt obligations of companies and governments outside the United States. The Wells Fargo Stagecoach S&P 500 Stock Fund is a mutual fund that invests in substantially the same stocks in substantially the same percentages as the Standard & Poor's 500 Composite Stock Price Index and seeks to approximate as closely as practicable the rate of return of that index. The Homestake Mining Company Stock Fund invests in shares of Homestake Mining Company. The Fixed Income Fund consists of guaranteed investment contracts previously purchased by the Plan from bank and insurance companies and shares in the Wells Fargo Income Accumulation Fund. Guaranteed investment contracts of Confederation Life Insurance Company have been separated from the Fixed Income Fund into a separate fund as detailed in Note 12. 9. Administrative Expenses: Certain costs associated with administering the Plan are paid directly by the Company. 12 HOMESTAKE MINING COMPANY SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 10. Net Assets Available for Benefits by Investment Type (in thousands), continued: Neuberger Wells Confederation Wells Fargo Wells & Berman Fargo Life Asset Fargo Guardian Templeton Stagecoach Fixed Guaranteed Allocation Lifepath Trust Foreign S&P 500 Income Investment Fund Funds Fund Fund Fund Fund Contracts ------------ -------- --------- ---------- ---------- ------- -------------- December 31, 1995: - ----------------- ASSET Cash and cash equivalents - - - - - $ 11 - ------- ------- ------- ----- -------- ---- ------- Investments, at fair value: Fund investments held by trustee $ 9,761 $ 5,046 $ 1,416 $ 400 $ 5,941 - - Common stock of the Company - - - - - - - Participant loans receivable - - - - - - - ------- ------- ------- ----- ------- ---- ------- 9,761 5,046 1,416 400 5,941 - - ------- ------- ------- ----- ------- ---- ------- Investments, at contract value: Fund investments held by trustee - - - - - 19,915 $ 3,091 ------- ------- ------- ----- ------- ------ ------- Total assets 9,761 5,046 1,416 400 5,941 19,926 3,091 LIABILITIES Amounts due to brokers for securities purchased - - - - - 1 - ------- ------- ------- ----- ------- -------- ------- Net assets available for benefits $ 9,761 $ 5,046 $ 1,416 $400 $ 5,941 $ 19,925 $ 3,091 ======= ======= ======= ===== ======= ======== ======= Homestake Mining Company Participant Short Term Stock Loan Investment Fund Fund Account Total --------- ------------- ----------- ----- December 31, 1995: - ----------------- ASSET Cash and cash equivalents $ 576 - $ 20 $ 607 ------ ------- ---- ------ Investments, at fair value: Fund investments held by trustee - - - 22,564 Common stock of the Company 10,029 - - 10,029 Participant loans receivable - 2,222 - 2,222 ------ ----- ---- ------ 10,029 2,222 - 34,815 ------ ----- ---- ------ Investments, at contract value: Fund investments held by trustee - - - 23,006 ------ ----- ---- ------ Total assets 10,605 2,222 20 58,428 LIABILITIES Amounts due to brokers for securities purchased 326 - - 327 ------- ------- ----- -------- Net assets available for benefits $10,279 $ 2,222 $ 20 $ 58,101 ======= ======= ===== ======== 13 HOMESTAKE MINING COMPANY SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 10. Net Assets Available for Benefits by Investment Type (in thousands), contiinued: Wells Homestake Wells Fargo Fargo Wells Mining Asset S&P 500 Fargo Company Allocation Stock Lifepath Stock December 31, 1994: Fund Fund Funds Fund - ------------------ ----------- ------ --------- ---------- ASSETS Cash and cash equivalents - - - $ 413 -------- -------- -------- ------- Investments, at fair value: Fund investments held by trustee $ 7,107 $ 4,169 $ 4,215 - Company stock of the Company - - - 10,165 Participant loans receivable - - - - -------- -------- -------- ------ 7,107 4,169 4,215 10,165 -------- -------- -------- ------ Investments, at contract value: Fund investments held by trustee - - - - Receivables: Participants' contributions 1 1 1 - -------- -------- -------- ------ Total assets 7,108 4,170 4,216 10,578 LIABILITIES Amounts due to brokers for securities purchased - - - - -------- -------- ------ ------- Net assets available for benefits $7,108 $4,170 $4,216 $10,578 ======== ======== ====== ======= Confederation Life Participant Fixed Guaranteed Short Term Loan Income Investment Investment Fund Fund Contracts Account Total December 31, 1994: - ----------------- ---------- ------- ------------ ----------- ------ Cash and cash equivalents - - - $ 105 $ 518 -------- -------- --------- ----- -------- Investments, at fair value: Fund investments held by trustee - - - - 15,491 Common stock of the Company - - - - 10,165 Participant loans receivable $ 2,051 - - - 2,051 -------- -------- -------- ----- ------- 2,051 - - - 27,707 -------- -------- -------- ----- ------- Investments, at contract value: Fund investments held by trustee - $ 21,236 $ 3,091 - 24,327 Receivables: Participants' contributions - - - - 3 -------- -------- -------- ---- ------ Total assets 2,051 21,236 3,091 105 52,555 LIABILITIES Amounts due to brokers for securities purchased - 144 - - 144 -------- -------- -------- ----- ------- Net assets available for benefits $2,051 $21,092 $3,091 $105 $52,411 ======== ======== ======== ===== ======= 14 HOMESTAKE MINING COMPANY SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (in thousands) 11. Changes in Net Assets Available for Benefits by Investment Type: During the year ended December 31, 1995, changes in net assets available for benefits by participant-designated investment types were as follows: Wells Wells Neuberger Wells Fargo Fargo Wells & Berman Fargo Asset S&P 500 Fargo Guardian Templeton Stagecoach Allocation Stock Lifepath Trust Foreign S&P 500 Fund Fund Funds Fund Fund Fund ---------- ------- -------- --------- --------- ---------- Additions to net assets attributed to: Interest and dividends - - - - - - Interest on participants' loans - - - - - - Mutual Fund Income - - - $ 24 $ 38 $ 173 Net appreciation in the fair value of assets $ 2,070 $ 462 $ 900 62 - 898 Contributions: Company, in cash 331 93 233 33 15 203 Participants, in cash 511 124 382 56 37 306 Transfers in from other plans 5 1 7 - - - ------- ----- ------ ---- ----- ----- Total additions 2,917 680 1,522 175 90 1,580 Deductions from net assets attributed to: Net depreciation in the fair value of investment in Homestake common stock - - - - - - Benefits paid to participants 482 136 375 8 - 105 Transfers out to other plans - - - - - - ------- ------- ------ ----- ----- ------ Total deductions 482 136 375 8 - 105 ------- ------- ------ ----- ----- ------ Interfund transfers 45 (4,815) (317) 1,249 310 4,466 ------- ------- ------ ----- ----- ------ Net increase (decrease) 2,480 (4,271) 830 1,416 400 5,941 ------- ------- ------ ----- ----- ------ Net assets available for benefits: Beginning of year 7,281 4,271 4,216 - - - End of year $ 9,761 - $ 5,046 $ 1,416 $ 400 $ 5,941 ======= ======= ======= ======= ===== ======= Confederation Homestake Life Mining Fixed Guaranteed Company Participant Short Term Income Investment Stock Loan Investment Fund Contracts Fund Fund Account Total -------- ------------- ------ ----------- ---------- ------ Additions to net assets attributed to: Interest and dividends $ 1,241 - $ 140 - $ 2 $ 1,383 Interest on participants' loans - - - $ 186 - 186 Mutual Fund Income - - - - - 235 Net appreciation in the fair value of assets - - - - - 4,392 Contributions: Company, in cash 776 - 253 - (111) 1,826 Participants, in cash 917 - 346 - 2,679 Transfers in from other plans 42 - 74 - - 129 ------- --------- ------ ------ ----- ------ Total additions 2,976 - 813 186 (109) 10,830 Deductions from net assets attributed to: Net depreciation in the fair value of investment in Homestake common stock - - 595 - - 595 Benefits paid to participants 2,906 - 326 148 11 4,497 Transfers out to other plans 26 - 22 - - 48 -------- -------- -------- ------- ------- ------ Total deductions 2,932 - 943 148 11 5,140 -------- -------- -------- ------- ------- ------- Interfund transfers (1,882) - 802 191 (49) - -------- -------- -------- ------- ------- ------- Net increase (decrease) (1,838) - 672 229 (169) 5,690 -------- -------- -------- ------- ------- ------- Net assets available for benefits: Beginning of year 21,763 3,091 9,607 1,993 189 52,411 End of year $ 19,925 $ 3,091 $ 10,279 $ 2,222 $ 20 $58,101 ======== ======== ======== ======= ====== ======= 15 HOMESTAKE MINING COMPANY SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 12. Confederation Life Guaranteed Investment Contracts: Confederation Life Insurance Company (CLIC) was seized by insurance regulators on August 12, 1994, to protect the financial interest of all policyholders. The Plan's investment contracts with CLIC will be paid out as part of a rehabilitation plan, the timing and value of which is uncertain at this time. On August 18, 1994, the Plan suspended withdrawals and transfers by participants of amounts in the Plan held by CLIC and froze the value of its CLIC guaranteed investment contracts at their then-current book values (cost plus accrued interest through August 15, 1994). The Plan has not accrued any interest on these contracts since they were frozen. These frozen contracts have been separated from the Fixed Income Fund into a separate frozen fund. Until a Rehabilitation Plan is finalized and approved, or other additional relevant information becomes available, the ultimate effect on the Plan's CLIC investments and the participants' ability to withdraw funds from CLIC cannot be determined. Based on the information received from the Rehabilitator and the Plan's advisors as of June 20, 1996, Plan management believes that such effect would not result in a material impact on the Plan's financial statements. Consequently, adjustments, if any, which may arise as a result of the ultimate outcome of the rehabilitation have not been reflected in the accompanying financial statements. 13. Subsequent Events: Amendment No. 4 to the Plan was executed on April 23, 1996 and is effective from January 1, 1996. This amendment provides for full vesting to participants' accounts that are terminated as part of certain specified reductions in labor force on the date of such termination. A new fund was added to the investment options of the Plan on January 15, 1996. The Money Market Fund invests in high-quality securities maturing in 13 months or less. 16 HOMESTAKE MINING COMPANY SAVINGS PLAN Item 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES as of December 31, 1995 (c) Description of Investment including (b) Identity of Maturity Date, Rate Issuer, Borrower, of Interest, (e) Current Lessor, or Collateral, Par (d) Cost Value (a) Similar Party or Maturity Value (in thousands) (in thousands) - --- ------------------------------- -------------------------------- -------------- ------------ Allstate Life Insurance Company GIC (maturing 11/12/98, 5.46%) $ 2,014 $ 2,014 Bankers Trust Company GIC (maturing 09/30/00, 5.87%) 3,417 3,417 Crown Life Insurance Company GIC (maturing 03/03/98, 4.04%) 1,042 1,042 John Hancock Mutual Life GIC (maturing 06/30/98, 5.16%) Insurance Company 3,013 3,013 * Wells Fargo Bank Wells Fargo Income Accumulation Fund (839,520 units) 10,428 10,429 Confederation Life Insurance GIC (frozen 08/15/94, originally maturing Company 01/02/95, 8.70%) 1,052 1,052 GIC (frozen 08/15/94, originally maturing 07/24/95, 9.14%) 1,005 1,005 GIC (frozen 08/15/94, originally maturing 03/15/96, 8.54%) 1,034 1,034 * Wells Fargo Bank Wells Fargo Asset Allocation Fund (507,334 units) 8,023 9,761 Wells Fargo Lifepath 2000 Fund (153,450 units) 1,536 1,748 Wells Fargo Lifepath 2010 Fund (94,848 units) 970 1,133 Wells Fargo Lifepath 2020 Fund (102,615 units) 1,048 1,266 Wells Fargo Lifepath 2030 Fund (37,497 units) 390 473 Wells Fargo Lifepath 2040 Fund (32,979 units) 353 426 Wells Fargo Stagecoach S&P 500 Stock Fund (442,004 units) 5,094 5,941 * Wells Fargo Bank Homestake Mining Company Stock Fund (1,437,671 units) 10,749 10,029 Neuberger & Berman Management, Inc. Neuberger & Berman Guardian Trust (102,558 units) 1,386 1,416 Franklin Templeton Distributors, Inc. Templeton Foreign Fund (43,529 units) 400 400 * Participant notes Repayable over a term of up to five years at an interest rate set at the time of issue of the loan. Rate during 1995 ranged from 5.5% to 12.6% 2,222 2,222 * Represents party-in-interest to Plan Note: GIC has been used above as an abbreviation for Guaranteed Investment Contract. 17 HOMESTAKE MINING COMPANY SAVINGS PLAN Item 27d - SCHEDULE OF REPORTABLE TRANSACTIONS for the year ended December 31, 1995 (in thousands) (f) Expenses (b) Description of Assets Incurred (a) Identity of (Include Interest Rate and (c) Purchase (d) Selling (e) Lease with Party Involved Maturity in Case of a Loan) Price Price Rental Transaction - --------------- -------------------------- ------------ ----------- --------- --------------- Wells Fargo Bank Homestake Mining Company Stock Fund $20,192 - - - - $19,914 - - Wells Fargo Bank Fixed Income Fund 19,469 - - - - 21,606 - - Wells Fargo Bank S&P 500 Stock Fund - 4,867 - - Wells Fargo Bank Stagecoach S&P 500 Stock Fund 5,631 - - - (h) Current Value of (i) Net (b) Description of Assets Asset on Gain (a) Identity of (Include Interest Rate and (g) Cost Transaction or Party Involved Maturity in Case of a Loan) of Asset Date (Loss) - --------------- ----------------------------- --------- --------------- -------- Wells Fargo Bank Homestake Mining Company Stock Fund - - - $19,714 $19,914 $200 Wells Fargo Bank Fixed Income Fund - - - 21,591 21,606 15 Wells Fargo Bank S&P 500 Stock Fund 4,373 4,867 494 Wells Fargo Bank Stagecoach S&P 500 Stock Fund - - - 18