EXHIBIT 11
HOMESTAKE MINING COMPANY AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In thousands, except per share amounts)
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1997 1996 1995
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BASIC:
Earnings:
Net income (loss) $(168,879) $ 30,281 $ 30,327
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Net income (loss) applicable to basic earnings
per share calculation $(168,879) $ 30,281 $ 30,327
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Weighted average number of shares outstanding 146,719 146,311 138,117
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Net income (loss) per share - basic $ (1.15) $ 0.21 $ 0.22
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DILUTED:
Earnings:
Net income (loss) $(168,879) $ 30,281 $ 30,327
Add:
Interest relating to 5.5% convertible
subordinated notes, net of tax 6,517 6,517 6,517
Amortization of issuance costs relating to 5.5%
convertible subordinated notes, net of tax 443 443 443
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Net income (loss) applicable to diluted
earnings per share calculation $(161,919) $ 37,241 $ 37,287
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Weighted average number of shares outstanding:
Common shares 146,719 146,311 138,117
Additional average shares outstanding assuming:
Exercise of stock options (treasury method) 31 216 212
Conversion of 5.5% convertible subordinated notes 6,505 6,505 6,505
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153,255 153,032 144,834
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Net income (loss) per share - diluted (a) $ (1.06) $ 0.24 $ 0.26
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<FN>
(a) This calculation is submitted in accordance with Regulation S-K item
601(b)(11) although it is contrary to paragraph 13 of SFAS 128 because it
produced an anti-dilutive result.
</FN>