EXHIBIT 11 HOMESTAKE MINING COMPANY AND SUBSIDIARIES Computation of Earnings Per Share (unaudited) (In thousands, except per share amounts) Three Months Ended March 31, BASIC 1998 1997 -------------- -------------- Earnings: Net income (loss) applicable to basic earnings per share calculation $ (4,611) $ 49,860 ============== ============== Weighted average number of shares outstanding 146,749 146,682 ============== ============== Net income (loss) per share - basic $ (0.03) $ 0.34 ============== ============== DILUTED Earnings: Net income (loss) $ (4,611) $ 49,860 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 (loss) applicable to fully diluted earnings per share calculation $ (2,870) $ 51,601 ============== ============== Weighted average number of shares outstanding: Common shares 146,749 146,682 Additional average shares outstanding assuming: Exercise of stock options (treasury method) 62 81 Conversion of 5.5% convertible subordinated notes 6,505 6,505 -------------- -------------- 153,316 153,268 ============== ============== Net income (loss) per share - diluted (a) $ (0.02) $ 0.34 ============== ============== <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 produces an anti-dilutive result. Diluted net income (loss) per share computed in accordance with SFAS 128 was the same as basic earnings per share. </FN>