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, BASIC 1998 1997 1998 1997 ------------- ------------- ------------- ------------- Earnings: Net loss applicable to basic earnings per share calculation $ (30,931) $ (64,857) $ (37,517) $ (16,601) ============= ============= ============= ============= Weighted average number of shares outstanding 211,060 210,567 210,860 210,534 ============= ============= ============= ============= Net loss per share - basic $ (0.15) $ (0.31) $ (0.18) $ (0.08) ============= ============= ============= ============= DILUTED Earnings: Net loss $ (30,931) $ (64,857) $ (37,517) $ (16,601) 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 loss applicable to fully diluted earnings per share calculation $ (29,192) $ (63,118) $ (34,037) $ (13,121) ============= ============= ============= ============= Weighted average number of shares outstanding: Common shares 211,060 210,567 210,860 210,534 Additional average shares assuming conversion of 5.5% convertible subordinated notes 6,505 6,505 6,505 6,505 ------------- ------------- ------------- ------------- 217,565 217,072 217,365 217,039 ============= ============= ============= ============= Net loss per share - diluted (a) $ (0.13) $ (0.29) $ (0.16) $ (0.06) ============= ============= ============= ============= <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 loss per share computed in accordance with SFAS 128 was the same as basic earnings per share. </FN>