EXHIBIT 11 HOMESTAKE MINING COMPANY AND SUBSIDIARIES Computation of Earnings Per Share (unaudited) (In thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, PRIMARY 1997 1996 1997 1996 ------------- ------------- ------------- ------------- Earnings: Net income (loss) applicable to primary earnings per share calculation $ (163,682) $ 7,427 $ (130,044) $ 27,856 ============= ============= ============= ============= Weighted average number of shares outstanding 146,731 146,672 146,714 146,190 ============= ============= ============= ============= Net income (loss) per share - primary $ (1.12) $ 0.05 $ (0.89) $ 0.19 ============= ============= ============= ============= FULLY DILUTED Earnings: Net income (loss) $ (163,682) $ 7,427 $ (130,044) $ 27,856 Add: Interest relating to 5.5% convertible subordinated notes, net of tax 1,629 1,629 4,888 4,888 Amortization of issuance costs relating to 5.5% convertible subordinated notes, net of tax 111 111 332 332 ------------- ------------- ------------- ------------- Net income (loss) applicable to fully diluted earnings per share calculation $ (161,942) $ 9,167 $ (124,824) $ 33,076 ============= ============= ============= ============= Weighted average number of shares outstanding: Common shares 146,731 146,672 146,714 146,190 Additional shares relating to conversion of 5.5% convertible subordinated notes 6,505 6,505 6,505 6,505 ------------- ------------- ------------- ------------- 153,236 153,177 153,219 152,695 ============= ============= ============= ============= Net income (loss) per share - fully diluted (a) $ (1.06) $ 0.06 $ (0.81) $ 0.22 ============= ============= ============= ============= <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>