EXHIBIT 11 HOMESTAKE MINING COMPANY AND SUBSIDIARIES Computation of Earnings Per Share (unaudited) (In thousands, except per share amounts) Three Months Ended March 31, PRIMARY 1997 1996 --------------- --------------- Earnings: Net income applicable to primary earnings per share calculation $ 49,860 $ 13,653 =============== =============== Weighted average number of shares outstanding 146,682 145,236 =============== =============== Net income per share - primary $ 0.34 $ 0.09 =============== =============== FULLY DILUTED Earnings: Net income $ 49,860 $ 13,653 Add: Interest relating to 5.5% convertible subordinated notes, net of tax 1,630 1,630 Amortization of issuance costs relating to 5.5% convertible subordinated notes, net of tax 111 111 --------------- --------------- Net income applicable to fully diluted earnings per share calculation $ 51,601 $ 15,394 =============== =============== Weighted average number of shares outstanding: Common shares 146,682 145,236 Additional shares relating to conversion of 5.5% convertible subordinated notes 6,505 6,505 --------------- --------------- 153,187 151,741 =============== =============== Net income per share - fully diluted (a) $ 0.34 $ 0.10 =============== =============== <FN> (a) This calculation is submitted in accordance with Regulation S-K item 601 (b)(11) although it is contrary to paragraph 40 of APB Opinion No. 15 because it produces an anti-dilutive result.