EXHIBIT 11 HOMESTAKE MINING COMPANY AND SUBSIDIARIES Computation of Earnings Per Share (unaudited) (In thousands, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, PRIMARY 1997 1996 1997 1996 ------------- ------------- ------------- ------------- Earnings: Net income (loss) applicable to primary earnings per share calculation $ (16,222) $ 6,776 $ 33,638 $ 20,429 ============= ============= ============= ============= Weighted average number of shares outstanding 146,728 146,662 146,705 145,949 ============= ============= ============= ============= Net income (loss) per share - primary $ (0.11) $ 0.05 $ 0.23 $ 0.14 ============= ============= ============= ============= FULLY DILUTED Earnings: Net income (loss) $ (16,222) $ 6,776 $ 33,638 $ 20,429 Add: Interest relating to 5.5% convertible subordinated notes, net of tax 1,629 1,629 3,259 3,259 Amortization of issuance costs relating to 5.5% convertible subordinated notes, net of tax 110 110 221 221 ------------- ------------- ------------- ------------- Net income (loss) applicable to fully diluted earnings per share calculation $ (14,483) $ 8,515 $ 37,118 $ 23,909 ============= ============= ============= ============= Weighted average number of shares outstanding: Common shares 146,728 146,662 146,705 145,949 Additional shares relating to conversion of 5.5% convertible subordinated notes 6,505 6,505 6,505 6,505 ------------- ------------- ------------- ------------- 153,233 153,167 153,210 152,454 ============= ============= ============= ============= Net income (loss) per share - fully diluted (a) $ (0.09) $ 0.06 $ 0.24 $ 0.16 ============= ============= ============= ============= <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. </FN>